Milk Procurement System

To supply Clover’s annual market demand for milk containing products, as determined by marketing.

A Delivery Agreements

  • Perpetual right to supply a guaranteed volume of milk
  • Valued and traded between producers
  • Clover is obliged to collect this milk
  • Chief Executive (in conjunction with the Executive Committee) determines the price

B Delivery Agreements

  • Issued and withdrawn at Clover SA’s discretion
  • Used to balance supply with for raw milk
  • Same price as “A” Delivery Agreements
  • Managed on a monthly basis, with a rolling twelve month view
  • Clover is obliged to collect this milk

Supply Contracts

  • Only entered into if “A” and “B” cannot supply the demand for raw milk
  • Fixed volume and time frame
  • Same price as “A” and “B”

C Milk

  • Excess supply, over and above “A”, “B” and Supply Contracts
  • Reduced price
  • No obligation to pay for “C” milk

A + B + Supply Contracts = Clover’s potential market for products containing milk


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