Bega Cheese’s share price has dropped by nearly 8 per cent as milk producers,retailers and consumers contend with rising dairy prices.
Executives and directors at companies such as Harvey Norman,Temple&Webster and Bega Cheese have topped up their shareholdings after a rocky earnings season,which has sent down share prices.
Australians will pay more for dairy products as ongoing COVID disruption-related costs continue to squeeze Bega Cheese.
The mining magnate’s private investment firm has snapped up more than 20 million shares of the dairy company for $108.3 million.
The ASX-listed food giant has outlined a raft of ongoing issues that are expected to hit its bottom line this financial year,with no immediate relief in sight.
The chairman of dairy giant Bega has said he is confident the business would be able to manage any further souring of the relationship between Australia and China.
Under the deal Bega will acquire well known brands such as Dairy Farmers,Yoplait and Farmers Union.
Bega Cheese looks primed to add yoghurt to its portfolio of products after beating out rival Saputo and Tanarra Capital to the Lion Dairy and Drinks business.
A key dairy farmer co-operative has backed a bid by Tanarra Capital for the Lion dairy and drinks business,saying it supported Tanarra's expansion plans.
Bega Cheese executive chairman Barry Irvin says the company could be interested in buying Lion's dairy and drinks business after the sale to China Mengniu Dairy was stopped by the Treasurer.
A long-running and costly legal stoush between Kraft Heinz and Bega over peanut butter jars is bound for the High Court.