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Johannesburg, Dec 2 (I-Net Bridge) - Clover Industries (CLR) announced on Friday that its milk producers will receive an average price rise of 19.5 cents per litre, effective from January 1, 2012 and a further increase of 22 cents per litre with effect from February 1, 2012.
The January increase varies per region with the average being 19.5 cents for all milk producers, while the February increase of 22 cents will be the same for all regions. These increases will represent a 6.5% and a 6.9% increases on average respectively.
This upward adjustment recognises the much higher input costs experienced throughout the supply chain, Clover said.
The oversupply of milk during autumn and early winter in certain regions together with the normal seasonal oversupply of milk during spring and early summer led to lagging competitor selling prices.
As a result, increases to milk producers and consequential selling price increases could not be implemented earlier.
Despite these increases a milk supply shortage during the autumn and winter 2012 season may occur. The increased raw milk costs will be recovered through selling price increases.
Johann Vorster, Clover's CEO, said: "Although regrettable that the hard-pressed consumer has to be subjected to these increases, we will continue to monitor the situation to ensure that we pay a fair milk price to milk producers whilst we continue to invest in marketing, innovation and facilities to ensure that our products remain relevant and become more available to customers and consumers. The level of input costs and the supply of milk may necessitate further price adjustments, both to customers and producers, in the short term."
