Old news bcc_100The question was asked about the business case...

Old news bcc_100

The question was asked about the business case for holding PCF. No case was put forward but Kinda Grange made it clear that cheese for MB products was being sourced elsewhere and that all options for PCF was on the table.

From the H1 presentation.

As of today's report that modest capex for PCF outlined in the extract you posted, will not be spent.


In my view, it could very well be imported cheese being sourced by MBH as the Australian dairy industry is in decline due to being internationally un-competitive. Bega lost $150m in exports last year as AU cost of production is well above foreign competitors. Australia last year imported more dairy than any time in history. Bega has shut down multiple dairy production facilities since 2019 as production costs have become increasingly higher than imported dairy and farm gate prices have been rising. In short, producing dairy in Australia is so expensive it is hard to produce at competitive retail prices compared to imported dairy.

So, if PCF was kept (probably because no-one wanted to buy it when the previous CEO put it on the market) so as to provide a symbiotic asset to produce dairy for the MB brand and now MBH is outsourcing its cheese production, why keep PCF?