Clover and Nestlé recently entered into contract manufacturing agreements whereby Clover will, inter alia, convert some of Nestlé's milk into skim milk powder at its Estcourt branch, in KwaZulu-Natal. These contracts will be in effect for a period of four years. However, Clover and Nestlé will still compete with each other for the acquisition of raw milk and the sale and marketing of milk powder. Further investigations are underway regarding other possible areas of co-operation between the two companies.
