Bega Cheese Suppliers Face Wait for Farm Gate Milk Price Recovery

“We have had two strong years of pricing, and probably last year was not reflective of global markets but it did reflect the strong competition for milk,” Mr. Irvin said. He noted that despite expectations, global commodity prices have not improved as anticipated over the past few months.

“We have been seeing a downward trend for some time,” he added. “We still expect an improvement … but it’s probably likely to be a little later in the financial year we are currently in, or late in the first half of the next calendar year.”

The Bega Group, owner of Tatura Milk and the Strathmerton cheese factory, one of Australia's largest processed cheese manufacturing facilities, marked its 125th anniversary with celebrations in the Bega Valley. Over most of the past century, the milk cooperative experienced modest growth, but the past decade has seen a significant expansion under Mr. Irvin’s leadership, with company revenue rising from $1 billion to $3.3 billion.

Bega’s portfolio includes iconic brands such as Vegemite, Bega Peanut Butter, Dairy Farmers, Dare, Farmers Union Greek Style Yogurt, Farmers Union Iced Coffee, Pura, Masters, Big M, Daily Juice, Zooper Dooper, Mildura, Prima, and others acquired through the 2021 purchase of the Lion Dairy and Drinks business.

Bega Cheese is leading efforts to improve sustainability in the Bega Valley through a Regional Circularity Cooperative (RCC) and the ‘Bega Circular Valley 2030’ program, aiming to make the Bega Valley the most circular regional economy in Australia by 2030.

“Can we get better outcomes in terms of costs, or better environmental outcomes,” Mr. Irvin questioned. “Can we use our resources better? It’s a heavy duty collaboration with the community and all levels of government. It’s a way of thinking about your entire community.”