GIven milk supply is critical to BGA and the overall industry volume only rose by 0.6 per cent across Australia in FY 21, this paragraph from the CEO's analysis is important, and probably needs an analyst to extract further detail given that Victoria is #1 for dairying in Oz:
...competitive market and pressures on milk supply remain strong. While we increased our milk intake through the acquisition, we lost some milk supply in Victoria due to the end of the two-year Koroit supply guarantee with Saputo, strong competition for milk, and supplier exits due to retirements and alternative land use. We have harmonised milk supply arrangements under the One Bega integration process including milk management, a milk services function, dairy code complaint milk supply contracts, and milk pricing systems for all regions.
BGA Price at posting:
$5.51 Sentiment: Hold Disclosure: Held
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