PETALING JAYA: Farm Fresh Bhd
's shares hit an all-time low yesterday following concerns over a recent announcement of supply constraints in the Australian milk industry.
At 5pm, Farm Fresh closed down five sen or 4.2% to RM1.14.
In a filing with Bursa Malaysia, Farm Fresh said rumours had been circulating on the company, drawing on the recent announcement by Australia’s Bega Group on the decline in Australian milk production.
Farm Fresh said the decline in production had resulted in intense competition for raw milk, leading to Bega expecting a decline in performance and an expected non-cash impairment in the range of A$180mil to A$280mil (RM560mil to RM871mil) in its audited results (subject to finalisation).
“While Farm Fresh is also impacted by the less-than-expected decrease in farmgate milk prices in Australia, as we do purchase milk from third-party farmers in Australia, we are much less impacted compared to Bega.
“Bega exclusively purchases 100% of its milk requirements from farmers in Australia while our purchase of milk ingredients from third-party farmers in Australia is expected to account for about 14% of our total milk ingredients.”
