The Competition Authority (CA) has approved the 30 percent acquisition of Clover Botswana by Clover South Africa on conditions.
In a press statement this week, the authority says the transaction showed that there were no substantive competition concerns in the production and distribution of the relevant food products in Botswana.
The CA says the Clover South Africa has shown its commitment to expand their business in Botswana by assisting in the growth of the upstream raw milk supply market particularly small scale dairy producers.
However, the CA has ruled that Clover SA shall “identify a local farmer and assist the same to develop his dairy business, through providing technical assistance and training with regard to good dairy practice.”
Clover SA will help start cluster farming in Botswana by firstly identifying land that is suitable for dairy farming with access to electricity and water. Secondly they will contact financing institutions and give the security that all milk produced will be collected and processed by Clover Botswana.
They will all also support the farm by providing dairy management training, technical advice, sourcing of good quality dairy cows and be used training facility for future dairy farmers and herd managers, who want to produce milk on a commercial basis.
The Authority is optimistic the undertakings given to CSA are “to be implemented within a period of 3 years with the assistance of the Ministry of Agriculture and other relevant departments or agencies.”
The Authority has however promised to render assistance by writing to the Ministry of Agriculture and the Ministry of Trade and Industry informing them about the undertakings accompanying the approval of the proposed transaction.