Ann: CEO Letter to Shareholders, page-4

I can just imagine people at the lactoferrin plant saying "use that resin and you will end up paying dearly". Then management saying "Don't be a doubter, we know best".

How many times can this company f... things up and expect shareholders to cop it on the chin?

Cheese production up 177% compared to first half of 2019. Yet total revenue is up from $40 million to $45 million. What are they doing? Producing stuff and giving it away?

"Resources have been applied to the development and market trialling of these products with pleasing results –based on both internally managed assessments and more importantly, feedback from domestic retail customers and international buyers. Alternative recipes have been developed which will result in further increases in yields and improved margins"

Is another way of saying our customers have told us that we have been producing stuff that they just don't want. If we don't sort it out, we will have no sales.

The opportunity involves the use of skim milk to extract lactoferrin (rather than from liquid whey, as currently)and would entail an investment of circa $10 million (with a payback of less than 24 months).

If there is one thing that is going to make existing shareholders angry, it is capital expenditure to increase the assets of the company. Make profits first then use the cash flow to enhance the business.

PFG factory in Shepparton. A lotof this work has been undertaken at the expense of the core meat business, and as a result, PFG will not meet itsbudget expectations for the period. Nevertheless, the capabilities and experience which has been built over this period in the manufacture of plant-based, alternative meat products has positioned PFG to be a key player in the future in this fast-growing segment of the food industry.

Is this for real? They get a contract to produce plant based meals and BFC has to assume all the risk and development costs to produce the product? Why on earth are they doing this on contract then? Why aren't they selling the product themselves if they spent the money and did the work to make it successful?

The sale and lease back will significantly reduce bank debt and reset balance sheet gearing. This will place BFC in a better position to undertake non-organic growth should opportunities arise in the shorter term.

So Sexton and mates want to buy more assets?

Having completed the start-up phase (Phase 1) of our business plan, and done much of the “heavy lifting” for the growth phase (Phase 2) of the plan, we believe that this is the right time to get onto the “radar” of potential new investors, strategic partners and others and provide market participants with further insight into the strongcompetitive advantages which have been built into the business of BFC over the past four years.

Another way of saying "we need to find some new investors fast because we have milked the current ones as far as we possibly can".