Says Wolthers: “Clark Cotton is increasingly exposed to the international cotton commodity market as the market for cotton lint with the South African textile industry declines. Furthermore, Clark Cotton does not have the expertise or the critical mass to effectively market its cotton lint in the international market, whereas Cargill does. Cargill has the international presence and reputation to make a success of this business."
"Clark Cotton will double the size of Cargill's Africa cotton business, and the enlarged operation makes far better sense from a commercial point of view for an international company such as Cargill. Cargill will be able to derive the kind of economies that Clark Cotton could never achieve as a stand-alone operation.”
Clark Cotton produces about 150 000 bales of cotton a year and supplies the international spinning industry and regional oilseed market. Its eight gins will be integrated with Cargill's own three gins in Zimbabwe – where it processes approximately 25% of the country's cotton – and two in Tanzania.
Clark Cotton is one of the leading producers and processors of cotton in Southern Africa. Committed to producing cotton of the highest quality, it operates two state-of-the-art ginneries at Marble Hall that handle the bulk of South Africa's cotton production.
marketing@alchempro.com
