Clover opens expanded production, distribution facility

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The project included the relocation of certain production facilities closer to the milk source and addressed logistical and distribution inefficiencies across the country.

Clover chairman, Werner Büchner said, "The Queensburgh facility was a major element of our main capital expenditure programme over the past three years and I am confident that the investments made in products and efficiencies give us a strong footing to retain our leading market position in defined markets."

"The additional products, new cold room and ambient warehouse added to the facility are already delivering benefits and we will continue to invest in value adding expenditure programmes over the long term as we aim to mitigate rising input and transportation costs."

Post the expansion, the facility's chilled capacity increased by 47% and ambient capacity by 100%. The potential average volume throughput was boosted to almost 1.5 million litres/kilograms per day.

Increased employment

Through its Ixopo milk collection depot, Queensburgh procures 290,000 litres of milk per day on average from approximately 52 farmers in KwaZulu-Natal. It produces on a daily basis some 500,000 litres of milk, juice, Super M and Maas. Today, the site spans 63 hectares with the area of buildings under roof measuring 32,571m2 and for a total floor area of 46,673m2.

Currently 1824 people are employed at Queensburgh, both permanently and on a temporary basis, with 46 of these positions created as a direct result of the distribution expansion and production projects.

"On a busy day, more than one million litres of product is received and dispatched to all areas of South Africa from the central distribution centre, with the volumes a mix between Clover's and principal products received from and dispatched to all areas of South Africa."

"We are particularly pleased to have been able to support local employment through the construction projects but also on a longer term basis through the creation of 46 permanent and temporary jobs," added Büchner.

Other projects

A number of other production related projects were launched in the past year, culminating in the installation and commissioning of the new Extended Shelf Life (ESL) plant, which produces fresh milk with 18 days shelf life. The installation of the new Ultra Pasteurised processing and aseptic filler has enabled Clover to produce Ultra Pasteurised Milk (UP Milk) with an extended shelf life of 30 days. Clover Maas was also successfully reintroduced and produced in the facility.

"The introduction of fresh milk with a minimum 18 day shelf life and ultra pasteurised milk with an extended shelf life of 30 days are both industry firsts and reinforce Clover's position as the market leader.

"We are proud of what we have achieved at this facility. Long-term investments are paramount to take the company to the next level of growth and we are confident that the investments made since listing will deliver returns for years to come," concluded Büchner.

Looking ahead, it is focused on maintaining an optimal equilibrium by growing its existing business and exploring new possibilities in category expansions and expanding its presence in Africa.