Beston Global Food Company (BFC) has advised at its AGM that its Lactoferrin capacity expansion has progressed with the commissioning and operation of a third extraction column. BFC anticipates Lactoferrin sales to surpass 10MT in the first half of FY24.
For the fiscal year of 2024, BFC said it had secured 100 per cent of its Lactoferrin sales volumes with long-term supply agreements.
BFC attributed the success to its strategic partnerships, which extended its reach into the infant formula segment, with a focus on markets in China, South Korea, India and various European countries.
BFC CEO Fabrizio Jorge said the company had now consolidated its growth into some of the world’s largest marketplaces.
“We are proud to service some of the world's largest Infant Formula manufacturers and we remain positive on the future, as other industries and categories discover the versatility and the material value that Lactoferrin can generate for brands and consumers overall,” said Jorge.
Capital plan progress
In line with the objectives set out in the capital plan associated with its equity raise in November 2022, the installation and commissioning of a number of productivity-enhancing capex projects was completed in recent months.
A milestone accomplishment following BFC’s capital plan was the successful commissioning and operation of an additional whey and milk fat separator. The new separator expands its production capabilities and allows for increased efficiency and significant cost savings.
BFC is also continuing efforts towards the development of a state-of-the-art water treatment facility, on track to become operational by Q3 FY24.
Milk production and industry dynamics
BFC reported that milk volumes were tracking ahead in expectations and growth when compared to the same period last year, thanks to a robust spring flush peak milk period and improved flexibility at its sites to process other forms of milk solids outside of fresh milk.
The company is currently on track to achieving its largest milk processing year in its history.
BFC acknowledged a ‘disconnect’ between farmgate milk prices paid to Australian dairy farmers, and said the pricing of dairy products in both the global and domestic markets was a reflection of Australian national milk production reaching its lowest point in FY23 over the last 30 years.
Despite headwinds during H1, BFC said it is staying focused on driving operational and efficiency improvements across its processing sites, delivering growth to Lactoferrin business, and re-entering the super-premium retail space via its recently launched Farmers Tribute range.
It is also driving cost reductions via renegotiations of its energy insurance and supply chain costs.
In June, BFC announced it would close and sell three businesses: Provincial Food Group, Aqua-Essence, and Beston Technology.
BFC advised that contracts had been exchanged for the divestment of its Aqua-Essence, with its minority partner at Aqua-Essence acquiring the assets of the business with settlement on 27 November.
Discussions regarding the divestment of Provincial Food Group are continuing via its appointed advisors.
Upon completion of these divestments, BFC said it will continue to focus its resources and efforts on its dairy and dairy nutrition business.