This is according to an agricultural economist at the North-West University (NWU), Johnny van der Merwe, who was reacting to news of the exit.  Clover announced that it is moving its factory from Lichtenburg to Queensburgh near Durban in KwaZulu-Natal due to service delivery challenges on the part of the Ditsobotla Local Municipality. 

Van der Merwe says job creation and food security in the region are now at risk, and Clover’s exit could mark the beginning of a mass exodus of more big-name companies in the region due to service delivery challenges.

“This is not even taking into account the indirect effects this will have on the hospitality sector, like restaurants and guesthouses, for example, that also employ a large number of people. Basic service delivery, including water and electricity, enables these businesses to function and be profitable over the long term. Without these services, companies will either pack and move or try and find alternative ways, including mechanisation, solar energy, etc. to ensure long-term profitability”.

Clover says in a statement that for years, the Lichtenburg factory has been experiencing water and power outages and the surrounding infrastructure has not been maintained by the municipality. They say despite numerous efforts to engage the municipality on these matters, the issues have not been resolved. The municipality refutes these assertions.

Meanwhile North West Premier, Job Mokgoro, will be meeting with the management of Clover soon, in an effort to save the over 300 jobs at stake there. Mokgoro notes that Clover processes about 350 000 litres of milk daily, with 250 000 litres of milk being sourced from KwaZulu-Natal while approximately 100 000 litres of milk is sourced from the North West, which means the closure of the plant will ultimately also have a negative impact on local farmers.

The Clover employees at the Lichtenburg factory in the North West say they are saddened with the decision of the company to shut down its cheese production in that area. Employees who spoke to OFM News on the basis of anonymity said the closure of one of the biggest employer in the area will have dire consequences in their lives, families, including the community. They say the company has, however, given them options to relocate with the company to Queensburgh in Durban in KwaZulu-Natal.

OFM News