Ponder 5 - Is ANZ correct

Shareholders/stockatchers,
Best wishes for 2024. May BFC see change and progress from it's current position. Needs Board turnover and a new Plan.

How does BFC (and others in Aus Dairy) become a price maker and not a price taker??? BFC has approx 2% of Aus annual milk production so lacks critical mass. In a shrinking and unprofitable market (most if not all sectors - NZ is approx $2kg MS cheaper) why would any buy BFC?? Vultures only!!

Is ANZ correct - refer below?

Dairy outlook points to growing imports and processor rationalisation: ANZJanuary 2 2024 - 11:00am0 CommentsFacebookTwitterWhatsappEmailCo.

The future of dairy processing facilities in Australia remains an issue for the industry, according to the ANZ bank.
The outlook for Australia's dairy industry points to growing dairy imports and processor rationalisation, according to the ANZ bank.The latest ANZ Agri Commodity Report says despite a rare increase in domestic milk production being forecast for 2023/24, the outlook remains for a shrinking dairy herd.It says the potential rationalisation of Australian dairy processors continues to be a main topic of discussion in the industry.ANZ head of agribusiness Mark Bennett said 2023 has seen many ups and downs across agricultural industries in both an on and off season."For all of the ups and downs this year, the question of where agri stands probably depends on location and industry," he said.
There are commonalities for all industry subsectors in both challenges and possibilities looking forward."For those that carry debt, the cost outlook and current reality is significantly higher than recent years."Labour availability has perhaps eased but remains an issue both on farms and through the supply chain."And cost of living pressures has translated to wage increases that will likely stick as inflation reduces.

"Dairy processors under the microscopeThe report says as the supply of raw milk continues its long-term decline, industry observers will be watching how major processors react heading into 2024.A focus around the industry restructure would be whether current players look to acquire any processing assets that may come onto the market, or whether any new investors, including from outside the dairy sector, look to enter the space."In many ways, the events in the processing sector over the coming year will be a barometer for the overall confidence in the industry," the report said.The report said for many dairy farmers, the issue of tight labour availability remained a major challenge.Along with other agri industries, this was exacerbated by a shortage of housing availability in many regional centres for new temporary or full-time workers.

The report said the issue of high farmland prices remained a double edged sword in dairy regions."It does make it tougher for dairy farms to expand the size of their operations, especially when they are competing with beef cattle producers, although it does also present an attractive exit operation for dairy producers who may be looking to retire," the report said.Globally, milk prices have been largely impacted by the impacts of tighter economic conditions on consumer demand, particularly in China."Looking ahead, a forecast recovery in consumer consumption levels in a number of markets, combined with an easing in global supply, could well see prices head upwards again during 2024."