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Highlights
- Milk prices have soared recently due to the growing global demand and restricted supply.
- As per the latest Australian Bureau of Statistics data, Dairy and related products witnessed a 4.1% year-on-year (YoY) price increase and a 1.9% increase over the March quarter.
Rising inflation has now become a matter of concern for common citizens in Australia as they have to spend extra money from their pockets for groceries and other consumables, including milk and other dairy products. Thanks to the ongoing Russia-Ukraine crisis and other supply chain disruptions, untamed inflation has become a global concern. Milk prices have soared recently due to the growing worldwide demand and restricted supply. In the most recent development, the Federal Reserve has signalled in its early May meeting about two more half-percentage-point rate hikes by the US central meeting in coming months to tame inflation.
The recent March ABS inflation data showed that food inflation was up 4.3% compared to a year ago, with the highest jump in fresh vegetables and meat prices — at 6.7% and 6.2%, respectively.
As per the latest Australian Bureau of Statistics data, dairy and related products witnessed a 4.1% year-on-year (YoY) price increase and a 1.9% increase over the March quarter.
The Consumer Price Index (CPI) rose 2.1% in the March 2022 quarter, while the food price inflation reached its highest since 2011.
In this article, we will talk about four ASX-listed dairy stocks, including A2 Milk Company Limited (ASX:A2M), Bubs Australia Limited (ASX:BUB), and Synlait Milk Limited (ASX:SM1), Australian Dairy Nutritionals Group (ASX:AHF).
Noticeably, the S&P/ASX 200 Consumer Staples Index (XSJ) was 1.323% lower at 12847.900 points.
A2 Milk Company Limited (ASX:A2M)
The shares of ASX-listed dairy nutritional company A2 Milk Company Limited traded 1.587% lower at AU$4.340 per share on ASX at 12:30 PM AEST today.
In the last one year, A2 Milk shares have fallen 18.27%, while the stock is down 22.22% year-to-date (YTD). A2 Milk Company Limited has a market capitalisation of AU$3.27 billion.
Recently, the company had announced the appointment of David Muscat as its new Chief Financial Officer. David is expected to take charge as the CFO in October 2022.
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Bubs Australia Limited (ASX:BUB)
Bubs Australia Limited shares traded 2.222% higher at AU$0.460 per share on ASX at 12:46 PM AEST today.
Bubs Australia Limited is an ASX-listed company which supplies infant formula, family dairy products and children's nutrition products. The company has a market capitalisation of AU$275.74 million. In the last one year, Bubs' shares have gained 33.82%, while the stock is down 5.21% YTD.
Read More: What's in store for Australian house prices under new government?
Synlait Milk Limited (ASX:SM1)
The shares of New Zealand-based milk nutrition company Synlait Milk Limited traded 4% higher at AU$3.120 per share on ASX at 12:46 PM AEST today. The company commands a market capitalisation of AU$655.74 million.
For the half-year ended 31 January 2022, Synlait's revenue grew 19%, driven by ingredients volumes & commodity price increases. This was Synlait's largest H1 volume and revenue on record.
In the last one year, the share price of Synlait Milk Limited has gained 11.43%, while the stock is down 5.45% YTD.
Australian Dairy Nutritionals Group (ASX:AHF)
The shares of Australian Dairy Nutritionals Group traded 1.666% higher at AU$0.061 per share on ASX at 12:53 PM AEST today.
Australian Dairy Nutritionals Group is an ASX-listed producer and processor of dairy products. The company has a market capitalisation of AU$31.75 million. The Group also owns high-quality dairy farms. The company is anticipating record farm milk prices for FY23, with early indications from processors at over $8.30 per kg of milk solids for conventional milk.
Nutritionals' shares have gained 22% in the last 12 months, while the stock is up 1.67% on YTD.
Read More: Fonterra (ASX:FSF) sets milk prices for FY23; shares gain
