BPAM Asset Valuations and Income, page-7

The reason their dairy business is failing is they simply cannot supply enough milk to ensure their factories can even break even, so they bought farms, unfortunately they aren't farmers. If you compare say Bestons farms to say Telfords farm in the south east, the cost to produce less milk is higher than that of Telfords per acre , that is just ridiculous. They are accountants not farmers.

The big farms are contracted to the major players who have a good quality supply of milk and Bestons are chasing their tail to try and get enough milk to attempt to break even by running after the small farmers and paying top dollar, as their own farms don't come close to producing enough milk to support the factories.

The AGM report actually talks about the challenges of supply of milk, which eventually maybe their undoing totally if it hasn't already happened.