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Supply Chain Manager at the Beefmaster Group, Roelie van Reenen says, “This has a ripple effect on all stakeholders: Farmers, smaller businesses and players in the supply chain, community beneficiaries, and of course, employees who stand to lose their income source and ability to feed their families.”

Van Reenen speaks about the relocation of one of the biggest cheese factories of Clover and the effect the move will have on the people of the province.

“According to government news, Clover provided over 400 permanent and temporary jobs. It is likely that the business may have offered to relocate many of these employees so as to prevent a total loss of income, which would have a devastating impact on households, given that many employees are likely to be the sole providers for their families,” he adds.

He says that there is a growing concern that governance and service delivery failures are rife and are having a major impact on farming and agribusinesses in small towns.

READ: Experts weigh in on #Clover’s closure of Lichtenburg factory

“You cannot operate a business in a town successfully if poor service delivery continues. While the saddest part is that so many people will be losing their jobs, the move also spells doom for the municipality and the investability of the town, given that Clover will no longer be a ratepayer to the municipality,” says Van Reenen.

Moreover, this is a grave warning that there may be more businesses that will follow Clover’s example and move their production plants to other areas, adds Van Reenen.

“Unfortunately, this creates a vicious circle. Less income for a municipality due to its biggest revenue sources no longer being there, will ultimately result in even fewer services being delivered. In plain language, the municipality has no money in its coffers to deliver services due to a business relocating. The problem is multi-layered, especially in light of ongoing political point-scoring, and requires urgent intervention from all roleplayers, as ultimately, it is the people in a town that will suffer the most,” asserts Van Reenen. 

He ends by saying that it is imperative that all stakeholders work with the municipality and the government to ensure that the supply chain flows and to ensure that the needs and wants of people and businesses are met.

OFM News/Lee Simmons