AUS
NZ
UK
CA
USA
IND
Highlights
- The S&P/ASX 200 Consumer Staples Index (ASX:XSJ) was down 1.553% at 13603.700 points at 1:17 PM AEST today.
- The farmgate milk price may increase to 59.5 cents per litre in 2022–23.
- In the wake of unabated inflation and increasing milk prices, new concerns related to food security have emerged.
Inflation has become a hot topic these days. Recently, not only did we see a surge in commodity and oil prices, but the price of consumables, including milk and milk products, has also increased. Speculations are rife that milk prices could rise further in Australia in the coming days.
It is expected that the gap between milk demand and supply will continue to grow even in Big-7 dairy exporters at least until the start of 2H 2022. The EU, US, New Zealand, Australia, Brazil, Argentina and Uruguay constitute the leading dairy exporting regions.
Australia is considered to be the world’s fourth largest dairy exporter. The farmgate milk price is anticipated to increase to 59.5 cents per litre in 2022–23 because solid import demand from China will likely outweigh supply constraints in New Zealand. The farmgate milk price could increase further if supply chain bottlenecks continue longer than anticipated and result in importing nations competing for the limited availability of dairy products.
Dairy stocks have a special place in the Australian share market, and investors are constantly keeping a close watch on the performance of the dairy industry in Australia. Today, the S&P/ASX 200 Consumer Staples Index (ASX:XSJ) was trading in red as the index was down 1.553% at 13603.700 points at 1:17 PM AEST.
In this article, we will look at the performance of three ASX-listed dairy stocks - A2 Milk Company Limited (ASX:A2M), Bega Cheese Limited (ASX:BGA), and Synlait Milk Limited (ASX:SM1).
A2 Milk Company Limited (ASX:A2M)
A2M shares were spotted trading 2.111% lower at AU$4.405 per share on ASX at 1:39 PM AEST on Wednesday (27 April 2022). The share price of A2 Milk Company Limited (ASX:A2M) has fallen 36.34% over the last one year, while the stock is down 21.06% year-to-date (YTD).
The ASX-listed New Zealand based dairy company is also listed on NZX. The company’s recent fall in share price was also associated with cross border trade issues along with lower demand for its products in China. A2 Milk is expanding its reach in new markets like Vietnam, Malaysia, and Singapore.
Image Source: © Iatsun | Megapixl.com
Bega Cheese Limited (ASX:BGA)
Today the share price of Bega Cheese Limited (ASX:BGA) traded 2.156% lower atAU$4.990 per share on ASX at 2 PM AEST. In the last one year, Bega Cheese shares have fallen 21.42%, while the stock has declined 10.89% year-to-date (YTD).
Bega Cheese shares have been on investors’ radar lately after the company provided an update on its performance & outlook this month. The company stated that various factors, including floods in Central Australia, Northern NSW and Queensland, the Russia-Ukraine crisis, along with lockdowns in China, disrupted the delivery of its products to customers.
Bega Cheese Limited is an ASX-listed Australian dairy and cheese company with a market capitalisation of AU$1.54 billion.
Bega Cheese has forecasted a normalised EBITDA of AU$175 to AU$190 million.
Read More: Surefire Resources (ASX:SRN) comes closer to diamond drilling on Victory Bore Vanadium Deposit
Synlait Milk Limited (ASX:SM1)
The shares of Synlait Milk Limited were 0.964% lower at AU$3.080 per share on ASX during the intraday trading session.
In the last 12 months, Synlait shares have fallen 2.22%, while the stock is down 6.67% year-to-date (YTD).
Synlait Milk Limited is a New Zealand-based dairy company that produces nutritional milk products.
The company has a market capitalisation of AU$679.78 million. This time Synlait recorded a record-breaking H1 volume and revenue on record. For the half-year ended 31 January 2022, the company’s revenue grew by 19%, while its NPAT was up 338%.
Read More: SZL, LBY & AHI - Three ASX tech penny stocks that are down 70% in 2022
