Fonterra are trying to get bega to buy the licence back at a...

Fonterra are trying to get bega to buy the licence back at a silly price

So it is a game to leverage bega to buy it back

They have already offered it at a crazy price

Fonterra have got a lot of problems

They want to focus on their cheeses and products they own no bega anymore


5 growth option for bega

1) higher milk prices- historically the milk price has followed oil as 3rd world companies who prefer fife dairy products buy more milk

2) win more milk supply - they will continue to win milk from Fonterra abs Saputo. Farmers want to support and Australian company

3) they will invest in koriot to produce higher value products such as mozzarella cheese and baby formula . Higher margin products

4) Capilano will deliver growth from export mkt

5) lion dairy- they will go hard to buy the flavoured milk business, yogurt and cheese parts of lion dairy. Likely team up with Coca Cola

The company has never had more growth options available

Mgnt is second to none. Cooper investments back mgnt all the time.

Stock is going up as company has been derisked due to koriot and this asset will be huge tailwind

Mgnt have huge amount of money invested