Global markets - prices and data/info, page-4

Izaacr/all,
Check,

1. the history on Lactoferrins at/in BFC. FY 21/22 Budget sell was $1500 kg.
2. Australian supply - now have Saputo, Bega, Noumi, BFC and Provico. Total Aus production could be 150tonnes per year.
3. Market dynamics

Lactoferrin market is in global oversupply. Producers are now price takers and suffer free market issues.
Market downturn is largely China. Problems in China fewer children, COVID and flat Domestic economy.
Believe Spot Market price has dropped to close to sub $400kg.
Understand November 2022 AGM (was a closed forum - no broadcast??) saw much discussion/questions on what is a lactoferrin's sale - is it when the customer says "I like you" or when BFC receives the customer order or ??? Current Balance Sheet should disclose.

BFC and lactoferrin production - BFC extracts lactoferrins in the early stages of milk processing at Jervois. Suggest the decision taken by BFC is to extract from every litre of milk processed. BFC past Press confirms such.
Apparent that lactoferrins to BFC is "gold" but global prices have crashed since the BFC Plan was written and agreed.
BFC driven by lactoferrins (and Whey with a little Cream thrown in) has to use milk hence Mozzarella production.
Subject to how BFC allocates costs, I suggest that BFC makes and sells Mozzarella at a LOSS. Market prices (Domestic and Export) appear to be below BFC Factory cost (Milk + Processing).

BFC big profilt lines look to be Whey Powder and Cream. As Australian milk supply drops - looms as the biggest Industry issue - quantities of Cream and Whey powder drop. Will prices rise???????

Annual BFC Profit summary by product is,

• Mozzarella - loss
• Lactoferrins - breakeven. ROI??
• Cream - limited volume/s but profits
• Whey - volume limited to Mozzarella production. Profitable.

Total BFC profit position in FY22/3 = loss.