Ann: Presentation - FY2023 Full Year Result, page-17

BGA has just swung another 50 million litres of milk into its domestic business, growth in cream and so on.

Bulk butter and skim milk powder markets (bulk commodity) are 'under water', i.e. no money to be made, compared with the domestic branded business.

Cheese prices have been a bit more resilient.

Re competition with NZ (to which I alluded above in the first post), Mr Findlay said BGA can still compete in lactoferrin and some other markets, but in pure commodities, no profits. The Australian industry needs to rationalise, Mr Irvin implied: there will be a realingment: the disconnection between milk solids prices per kg (farmgate) and bulk commodity prices means some supply reductions.

Mainland China was discussed: lower demand a key part of global market decline. Mr Irvin said there was significant ongoing softness in demand from China: this is more a concern than how the Chinese are producing a bit more themselves. BGA has to adjust. The $A continues to decline though, helping BGA a bit, as this mitigates some of the problems. Warehouses in China are emptying, as purchasers in China hope the next purchase will be quicker. They don't want long term contracts at present!