A2M, BGA, AHF, SM1: These ASX dairy stocks are in news today, here’s why

Highlights

• Inflation in Australia has jumped to a two-decade high resulting in an increase in the household budget.
• According to the Australian Bureau of Statistics data released in April this year, the cost of dairy and dairy-related products grew by 4.1% in the last year.
• The shares of four ASX-listed stocks - A2 Milk Company Limited, Bega Cheese Limited, Australian Dairy Nutritionals Group, Synlait Milk Limited - were trading in red today at 11:06 AM AEST.

The Australian equities opened lower on Thursday (9 June) as the benchmark index ASX 200 fell as much as 1.151% at 7039.100 points at 11:24 AM AEST. At one point, nine of 11 sectors were trading in red, where the S&P/ASX 200 Consumer Staples (Sector) XSJ was down 0.238% at 12724.800 points at 11:06 AM AEST. Except for the commodities sector, all other sectors have faced challenging times since the onset of the Russia-Ukraine war. First, the COVID-19 pandemic and later the Russia-Ukraine crisis have had a long-lasting impact on the global economy.

Meanwhile, the Reserve Bank of Australia on Tuesday (June 7) raised its interest rate by 50 basis points, the highest in 22 years. Food inflation has become a widely debated topic given the soaring price of consumables, including milk and other dairy products. Household budgets of Aussies have increased, and the cost of living has risen steeply. 

According to the Australian Bureau of Statistics data released in April this year, the cost of dairy and dairy-related products grew by 4.1% in the last year, while fruits and vegetables increased by 6.7%. Meanwhile, the cost of food products increased by 4.2% and Bread and cereal products also increased by 3%. 

In this context, let’s look at the leading dairy companies in Australia. This article will look at the current share price and the share market performance of four ASX-listed dairy stocks, including A2 Milk Company Limited (ASX:A2M), Bega Cheese Limited (ASX:BGA), Australian Dairy Nutritionals Group (ASX:AHF), and Synlait Milk Limited (ASX:SM1). 

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A2 Milk Company Limited (ASX:A2M)

The shares of dairy nutritional company A2 Milk Company Limited traded 2.620% lower at AU$4.460 per share on ASX at 12:36 PM AEST today.

In the last one year, A2 Milk shares have fallen 21.75%, while the stock is down 20.07% year-to-date (YTD).

A2 Milk Company Limited has a market capitalisation of AU$3.40 billion.

Bega Cheese Limited (ASX:BGA)

The shares of Bega Cheese Limited were spotted trading 1.476% lower at AU$4.670 per share on ASX at 12:43 PM AEST on Thursday (9 June). 

The company has a market capitalisation of AU$1.43 billion.

The share price of Bega Cheese Limited has fallen nearly 20.71% in the last one year, while the stock is down almost 16.61% on YTD. 

Australian Dairy Nutritionals Group (ASX:AHF)

The shares of Australian Dairy Nutritionals Group caught investors’ attention on Thursday (9 June) after the Group revealed via an ASX announcement that it has entered into a contract to sell the farm located at 417 Moreys Road, Brucknell, Victoria (Brucknell North farm). The sale includes the land and farm chattels but not the herd. 

As per the company, the property's purchase price is $6.425 million, representing a price of over $10,000 per acre. The decision to sell the farm has been made to support the capital requirements of the Group at a crucial time when AHF is preparing for commercial production of its organic A2 infant formula range and making considerable investments in inventory for the organic A2 range and the future Gradulac Gentle range.

The share price of Australian Dairy Nutritionals Group traded 1.333% lower at AU$0.074 per share on ASX at 12:21 PM AEST today.

The company has a market capitalisation of AU$41.14 million.

Australian Dairy Nutritionals' has gained 48% in the last 12 months, while the stock is up 23.33% on YTD.

Synlait Milk Limited (ASX:SM1)

The shares of New Zealand-based company Synlait Milk Limited were seen trading 2.287% lower at AU$2.990 per share on ASX at 12:15 PM AEST. The company commands a market capitalisation of AU$668.85 million.

In the last one year, the share price of Synlait Milk Limited has fallen almost 10.75%, while the stock is down 9.39% YTD.

On 31 May, the company reduced its forecast base milk price for the 2021/2022 season to NZ$9.30 per kgMS from NZ$9.60 per kgMS.

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