In a statement to the ASX, Bega Cheese has warned the full-year EBITDA impact of COVID-19 costs will be in excess of $40m despite some recovery in H1 of FY22. Bega is forecasting a normalised EBITDA of $175m – $190m. While COVID-19 costs were anticipated, Bega is managing additional costs due supply chain disruptions in Central Australia, Northern NSW and Queensland following the floods and increases in input costs as the result of the war in the Ukraine. Furthermore, lockdowns in Shanghai are impacting product delivery schedules in China. The processor said costs and market disruptions associated with COVID-19 and the floods are expected to be confined to FY22.
Bega said stronger international dairy prices and falling Australian milk production have increased competition for national milk supplies, prompting Bega to increase farmgate milk prices.