AS Kalev Stock Exchange Release 19.01.2007 AS Kalev concludes long-term contracts with milk producers AS Kalev’s subsidiary AS Kalev Paide Tootmine has concluded, for the first half-year 2007, crude milk buying-in contracts under which the company will supply nearly 160 tons of crude milk a day. According to the company, the negotiated price formation is based on a co-operation model which considers a long-term partnership between the parties. According to Tarmo Maasikamäe, AS Kalev’s financial director, the company has, for several years, been searching for a co-operation model which would be acceptable for both milk producers and milk processors. With these contracts, the co-operation is not based on the highest price offered but, rather, a sustainable partnership through reasonable division of risks between the manufacturer and the processor. “By now we have concluded contracts which cover the needs of both parties. The price of the crude milk to be purchased will be formed on the basis of the average European milk powder, skimmed milk powder and butter. We are convinced that the contract will allow milk producers to dedicate on their main activities—i.e. production of high-quality milk—and to get a fair price for it. At the same time, it will allow us to concentrate on our own goal—to maximise the value of crude milk,” Tarmo Maasikamäe added. AS Kalev Paide Tootmine produces milk and skimmed milk powder, butter and butter mixes as well as high-temperature pasteurized milk. In the financial year 2005/2006, the company’s total output amounted to 13,800 tons. Most of the output is exported under the Kalev trademark to EU countries, with Germany being the most important destination. AS Kalev Paide Tootmine has been issued a quality certificate which acknowledges the company’s compliance with the ISO 9001:2000 standards in the area of milk and milk- based product manufacturing. Aire Mill tel 6077853
AS Kalev concludes long-term contracts with milk producers
| Source: Luterma