Milk supply is very tight due to many factors. Amongst which are season (no rain), high irrigation costs, high feed costs. Told farmers have cut numbers and feeding less. Cow yields are down. Seasonally Autumn calving period so Cows out. BFC pays $6.20kg or thereabouts for Milk = approx $0.48 c litre. Told 10000 litres milk = 1000kg cheese so Cheese milk cost = $4800 OR $4.80kg. Market sources suggest WOW contract was won at $4.85kg - at/below milk cost and no allowance for overhead recovery, shredding (BFC doesn't do) or packing or margin (poor bloody shareholders)?? BFC Milk supply is reported at 100m litres now - where does this go? Hopefully not Mozz at milk cost or below, Cheddar then it's in STOCK (needs to be aged). Told Aus market today both Mozz and Cheddar are approx $6kg (Wholesale). At these prices BFC margins must be skinny if at all positive. Cheese stocks growing?? US Mozz is selling in Aus at A$5kg. Dumping?? BFC reports suggest Receivables run at 90 days ++ Sell but don't get paid........................... BFC now Dairy operation with two (2) high paid Chiefs - Hicks & Ebert. Why? Free cash ????
Time for change at BFC. Where are the Chinese shareholders - Dashang, Kunteng, others. Why no Board representation? Chairman/Board - standaside and give someone else a go. Could be any worse.
BFC Price at posting:
14.0¢ Sentiment: None Disclosure: Held
(20min delay)
