What's taking the bite out of Bega Cheese?

Alan Kohler speaks with Paul van Heerwaarden, the CEO of Bega Cheese, regarding recent performance, and what impact the drought, milk prices and its expansion into the grocery business is having on the Bega bottom line.

Paul van Heerwaarden is the CEO of Bega Cheese which has been a shocking experience for investors over the past 12 months down from $7.60 (it actually peaked at $8) and now $4 so the stock has halved and it’s been a victim of the drought, also rapid expansion by buying vegemite and the rest of the Mondelez grocery business. But mainly that the price of milk at the farm gate has gone up and it’s been hard to recover that because of competition at both ends of the scale; outfits like Bega are getting squeezed in the middle, rising milk prices and getting squeezed at the top by the supermarkets.

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