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Bega Cheese Success at NSW DIAA Awards  
31 May, 2005  Bega Cheese

The NSW DIAA (Dairy Industry Association of Australia) held its annual conference and awards dinner at the Novotel, Olympic Park Sydney, earlier this month. The theme for the conference was "Focus on Quality", and Bega Cheese was well represented both in speakers presenting at the event, and awards received.

Representing Bega Cheese at the conference was Bega Cheese Chairman, Barry Irvin, whose presentation entitled "Promoting the Quality of Dairy Products in Export Markets" reflected both the popularity of Australian dairy products in general in the international marketplace, and the success that Bega Cheese has had in delivering quality cheese products into over 53 countries around the world. Dave Long, Cheese Plant Assistant Manager, also delivered a high quality presentation on his tour of dairy factories in New Zealand, a tour that was sponsored by the DIAA and awarded to Dave during 2004. Both presentations were received very well by the audience on the day.

Bega Cheese received a total of 17 awards at the presentation; 4 trophies, 5 gold awards and 8 silver awards.

The "Champion Cheddar Cheese NSW" trophy was awarded for our Strong & Bitey product, made to our "Hero" recipe. Steve Krucler, Bega Cheese Buttermaker, was once again awarded the Buttermaker's Shield, and Garry Long was awarded the trophy for Champion Cheesemaker. These awards represent both the quality of our products, and the tremendous effort and dedication of all staff members involved in our processes.

The Processing and Packaging Unit was also well represented at the awards, and our retail packed natural cheeses won a number of accolades, including gold awards for Bega Mild Cheddar and Strong & Bitey, together with a further three awards for our processed cheese products.

The awards once again demonstrate the excellent quality of milk from our farmer suppliers, the high standard of the production facilities at both our Lagoon Street and Ridge Street sites, and the enormous contribution from all of the team at Bega Cheese.

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Appointment of New CEO – Bega Cheese  
30 March, 2005  Bega Cheese

Michael ByrnesThe Board of Bega Cheese is pleased to announce the appointment of Michael Byrnes as its new Chief Executive Officer.

In 2004 Maurice Van Ryn indicated that he wished to retire from the position of CEO. An extensive search throughout Australia and New Zealand was carried out with the assistance of the specialist executive recruitment firm “Boydens” in an endeavour to ensure the best possible candidate was identified.

Michael's appointment is testament to the quality of executives that have been part of Bega Cheese's success over many years. As Group Operations Manager, Michael has been responsible for the development and operation of both our Lagoon Street and Ridge Street facilities; leading the teams which have constructed and commissioned major upgrades and installations, and recruiting the key management required to ensure their successful ongoing operation.

Michael is very aware of the importance of having a good team around him and it is pleasing to report that the skills of Maurice Van Ryn have been retained by the company and he will be an important part of Michael's management group.

Maurice has made a great contribution to the company over many years and of recent times his passion has been the development of Bega Cheese's international business. Maurice will have an ongoing role in the area of international business development as well as involvement in an executive capacity in key issues relating to Bega Cheese's overall business.

Whilst Michael's appointment as Chief Executive Officer will be effective immediately, there will be a transition period to ensure a smooth change over.

Bega Cheese congratulates Michael on his appointment and once again thanks Maurice Van Ryn for his contributions as CEO over the past 15 years.

Barry Irvin
Chairman

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2004 Premier's NSW Exporter Of The Year Awards  
1 November, 2004  Bega Cheese

Bega Cheese has received the award for NSW Excellence in Food Export Marketing, at the recent Premier's NSW Exporter of the Year Awards, held in Sydney.


 
Richard Brooks, presenting the NSW
Excellence in Food Export Marketing Award, to Maurice Van Ryn, CEO of Bega Cheese
The Awards dinner, held at the Grand Harbour Ballroom at Star City on 21 October, was hosted by the Australian Institute of Export, with the Hon David Campbell MP (Minister for Regional Development, Minister for The Illawarra, and Minister for Small Business) as guest of honour.

Bega Cheese has now been recognised at the Premier's Awards for three years in succession. The company took out the same award in 2003, together with a Highly Commended for Regional Exporter of the Year, and in 2002 won the award for Excellence in Food Marketing to Asia.

It is indeed an honour to be recognised amongst our peers in this forum, and credit must be given not only to the farmers and suppliers for the quality of the raw product available to Bega Cheese, but also to the staff at both Bega Cheese plants.


L – R: Mary Dows, Charlene Driscoll, Maurice Van Ryn, Jacqui Page, Angela Salway Part of the Bega Cheese Export Department
The export department at Bega Cheese, headed by Maurice Van Ryn and consisting of Grahame Hocking, Alicia Blanch, Jacqui Page, Angela Salway, Mary Dows and Charlene Driscoll are to be congratulated on their achievements in the rapidly growing export sector of the business.

The award, which was sponsored by the National Food and Wine Strategy, was presented on the night by Mr Richard Brooks.

1 November 2004

For more information:

Maurice Van Ryn
Chief Executive Officer
(02) 6491 7777
E-mail:

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Most Successful Cheese Exhibitor – Royal Melbourne Show  
15 October, 2004  Bega Cheese

Bega Cheese was honoured to receive the trophy for Most Successful Cheese Exhibitor, at this year's Royal Melbourne Dairy Produce Awards.

Bega Cheese received an additional 18 awards, 4 Gold (Mild Cheddar, Super Slims, Reduced Fat Tasty Shredded 50%, and Tasty Shredded) and 14 Silver medals in the various cheese categories.

The Bega product range was very well represented among the trophy and medal winners, unsalted and salted butter, vintage cheddar, Stringers and processed cheese slices all took silver medals on the day. The Bega Black Pepper processed cheese slice, unavailable in Australia but sold in overseas markets, was also awarded a silver medal.

The Bega Valley is fortunate to have a strong milk supply base of raw materials for our products, and these awards once again acknowledge the best quality milk coming off-farm and into our Lagoon Street and Ridge Street plants. There is an enormous team effort at both factories in converting milk into award-winning cheese, and we are proud to acknowledge both our staff and suppliers when receiving awards such as those awarded at the Royal Melbourne Dairy Produce Awards.

15 October 2004

For more information:

Maurice Van Ryn
Chief Executive Officer
(02) 6491 7777
E-mail:

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Bega Cheese Recognised at the NSW DIAA Awards  
3 June, 2004  Bega Cheese

The DIAA NSW Awards and Conference was held at Star City Hotel in Sydney last month, an annual event celebrating the best dairy products produced in New South Wales. The awards ceremony was held at a gala dinner at Star City Casino, attended by over 200 representatives from a broad cross-section of the New South Wales dairy industry, and Bega Cheese was privileged to be well represented in the presentation of trophies and awards during the course of the evening.

Bega Cheese received 23 awards in total; 5 trophies, 9 gold and 9 silver awards. The major trophies for cheddar and butter were all won by Bega Cheese, testament to the quality of product consistently coming out of the Dairy Products Unit at the Bega plant. It is worth noting that all of the products that were entered into the DIAA awards from Bega Cheese, won at least one award on the night.

Paramount among the awards received by Bega Cheese were the Formula Chemicals Perpetual Trophy for Champion Cheddar, the Campbell Cleantec Trophy for Champion Butter, and the Tom Dare Trophy for Champion Butter Maker (awarded to Steve Krucler). Also faring well were Bega's processed cheddar cheeses, including the Bega Black Pepper processed cheese slice, and both the Mild and Vintage natural cheddars; all coming out with gold medals.

The awards once again demonstrate the excellent quality of milk from our farmer suppliers, the high standard of the production facilities at both our Lagoon Street and Ridge Street sites, and the enormous contribution from all of the team at Bega Cheese.

The theme for this year's DIAA Conference was 'Innovation', and the speakers for the event were extremely well received over the two days. Bega Cheese Chairman, Barry Irvin, and Cheese Plant Supervisor, David Long, were both key presenters; addressing the 'Innovation Through Technology and Communication' session. Barry presented "Flightpl@n", Bega Cheese's Dairy Products Units' electronic management system; while David presented on the subject of the Dairy Process Engineering Centre Project, based in Melbourne; a cross-industry review of Standardisation Technology in which David played a key role.

The awards received at the DIAA Conference follow hard on the heels of Bega Cheese's recent success at the Royal Agricultural Show in Sydney earlier in this year. Our products were once again well recognised at the RAS, and culminated in the award for the Most Successful Exhibitor, and the selection of our cheddar for the Australian Cheese Board.

1 June 2004

For more information:

Maurice Van Ryn
Chief Executive Officer
(02) 6491 7777
E-mail:

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Bega Cheese Posts Strong Result In Drought Year  
14 November, 2003  Bega Cheese

In releasing its 103rd annual report, Bega Cheese has posted a very strong profit result in a year that has generally been very bad for agriculture as a consequence of the worst drought in 100 years.

The record operating profit before distributions to members of $10.894 million, on turnover of $218.5 million, reflects the growth and diversity of the Bega Cheese business, away from reliance on just market milk supply and bulk cheese production.

In commenting on the result, Chairman of Bega Cheese, Barry Irvin, said that "The diversity of our net income streams has helped enormously in shielding the company from the worst of the drought. Our value adding cut pack and processing plant, and the royalty stream on our Bega brand are virtually unaffected by the drought. The only part of the business that was negatively impacted on was our bulk cheese and whey powder operations, which suffered from the effects of lower milk intake and thus lower throughput."

Commenting on the support of Bega shareholders in a tough drought year, Mr Irvin went onto say "It was fortunate that Bega had a business that was still able to perform well in a tough year, as this allowed us to financially support our members through the drought with over and above drought relief payments.

Effectively, all the operating profits that we made this year we elected to distribute to our members by way of co-operative premiums, drought premiums and dividends, which totalled just over $10 million. This has helped our members through the worst drought in the district in 100 years, and remain in the dairy industry."

Some of the key statistics contained within the Co-operative's 103rd annual report include:
  • Sales revenue up 20% to $218 million
  • Operating profit up 38% to $10.894 million
  • Bulk Cheese production down 9% to 13,350 tonnes
  • Cut and Pack output up 49% to 36,695 tonnes

Bega Cheese has invested well over $100 million in expansion of its manufacturing operations in Bega over the last 10 years and in that time has increased staff levels from 100 to around 500.

Chairman Barry Irvin in commenting on the continued growth of the Bega Cheese business said that "As well as it being very pleasing for our shareholder members that the Co-operative performs well and provides them with an income, it is also very satisfying that we have been able to grow the business within the Bega Valley, and provide an important stimulus to the economic well being of the community and local businesses."

An important part of Bega Cheese's future growth is its efforts in developing export markets for its Bega brand as well as provide contract pack services for companies around the world. This has been led by Bega Cheese Chief Executive Officer, Maurice Van Ryn, who on commenting on this said, "What a lot of people may not realise is that right here in Bega, we have a world class manufacturing establishment that is able to produce high volumes of high quality product that can compete on cost, anywhere in the world. This opens up the world market to us, to take our extensive range of processed and natural cheeses to virtually any country in the world."

Bega value added cheese products are already flowing to some 35 countries around the world, with sales growing a further 30% in the year just finished. In recent weeks, Bega Cheese has picked up national recognition for achieving the first shipment of value added agricultural produce out of Australia into Iraq post the war, and also for achieving two awards for export at the recent NSW Premiers and Australian Institute of Export Awards night, held in Sydney.

In summing up the results of Bega Cheese for the 2002-2003 year, Chairman Barry Irvin said, "The strength of Bega Cheese is the loyalty of our farmer membership base and the efforts of our 500 staff and management at the Bega factory. We have every confidence that the results produced in this past year will carry on into the future. Obstacles such as a strongly rising Australian dollar can hopefully be more than offset by a reasonable dairying season in the year ahead rather than drought."

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Bega Cheese Recognised for Exporting Achievements at NSW Premier Awards Night  
4 November, 2003  Bega Cheese

The ongoing success of Bega Cheese in the export arena was recognised again last week, with Bega securing two awards at the prestigious NSW Premier's Award night held at the Darling Harbour Convention Centre, in conjunction with the Australian Institute of Export.

Bega Cheese took the honours in the category of Excellence in Export Marketing, and was runner-up behind Rice Growers Co-operative, in the Regional Exporter of the Year Award.

Commenting on the success, CEO of Bega Cheese, Maurice Van Ryn said, "The exporting division of Bega Cheese is emerging as a core component of our business, and will provide the necessary growth for the business in the decades ahead."

Having exported nothing prior to 1990, Bega Cheese now exports its range of natural and processed cheddar cheeses to about 40 countries around the world, generating in excess of $40 million in sales revenue.

Bega's latest triumph was to achieve the first sale of food product into post-war Iraq, with a container of 80,000 cans of Bega processed cheese arriving there this month. In commenting on the success of Bega Cheese in its export endeavours, Maurice Van Ryn went on to say, "Bega's exporting model is to search out enthusiastic chilled distributors in each market, looking for them to embrace the Bega brand as their own, and together we grow the Bega brand to the highest value-added end of the food chain, being primarily the retail sales segment of the market. A good number of our agents are now approaching 10 years of partnership with Bega, and the results of their dedication and persistence are starting to pay off for all concerned."

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Bega Cheese A First In Iraq  
20 October, 2003  Bega Cheese

The first container load of Bega Cheese is due to arrive this month in Iraq.

Bega Cheese has made a big impact in the Middle East over the last twelve months, launching its extensive range of cheese products in no less than nine Middle East nations.

One of the key products contributing to the success in the Middle East is Bega's recently launched processed cheese in a can. CEO of Bega Cheese, Maurice Van Ryn commented, "Last October we launched dedicated Bega / Arabic cheese in the Middle East in 113g and 340g can sizes. This provided the platform to establish Bega as a brand of the future in the Middle East. Our efforts in the region are led by our very experienced agents Means Marketing Company, who have a long and successful record of dairy trading in the Middle East."

Bega's latest success has been to break through into the emerging market of Iraq. The first full sea container load of Bega processed cheese in cans is en route to Iraq and due to arrive there later this month.

One container of Bega Cheese cans represents over 80,000 cans, worth in excess of AUD$65,000. Mr Van Ryn went on to say that, "Bega Cheese sees Iraq as a market of the future. It is a cheese-eating culture, and we have product ideally suited to the market place. As normality returns to the country, and commercial trade returns, we would expect to see our business grow in Iraq. It is very satisfying to get this early shipment of our product into the Iraqi market."

AQIS recently confirmed to Bega that, as far as it was aware, the export certificate issued to Bega was the first and only certificate issued by AQIS for export of food product to Iraq from Australia.

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Bega Cheese Storming The Middle East  
June 27, 2003  Bega Cheese

Chairman of Bega Cheese, Barry Irvin, and CEO Maurice Van Ryn, have just returned from a 2 week tour of the Middle East, where the Bega brand is quickly making big inroads into this lucrative retail cheese market.

Having been launched into the Middle East only 18 months ago, Bega Cheese has already chalked up over $5 million in sales of its retail cheese products, and sales are on a constant increase.

Bega Cheese consumer products are regularly flowing to the markets of United Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Jordan, Egypt and Lebanon. During the next 6 months sales are also expected to commence into Iraq, Qatar and Yemen.

Commenting on the visit to the Middle East, CEO Maurice Van Ryn said, "The Middle East is a logical target market for Bega Cheese – they are big processed cheese eaters and Bega has a high capacity, world competitive processed cheese manufacturing plant".

On this trip, Bega Cheese visited its sub-agents in Jordan, UAE, Bahrain and Oman. Mr Van Ryn commented, "It was great to catch up with our sub-distributors in these countries and tell them about Bega's plans for the future, and the support that we will commit to our distributors to ensure that they succeed with the Bega brand in their markets. Once they heard what Bega had to say, they were filled with a high level of confidence about what they can achieve in the future, with Bega Cheese as their brand and partner in the Middle East."

Bega Cheese currently sells its processed cheese in cans, wrapped slices, and loose slices into the Middle East, as well as a selection of its famous block cheddar cheeses. In the 2003 – 2004 year Bega will produce over 40,000 tonnes of consumer packs from its Bega based factory. Of this, some 5,000 tonnes is exported to markets around the world.

On commenting on the future of this market, Maurice Van Ryn said, "In a short period of time we have already built an impressive sales base. Our expectation is a five-fold increase in annual sales of retail product over the next 5 years to around $25 million per year."

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Bega Cheese to Receive $367,500 for EMS Project  
April 10, 2003  The Office of Gary Nairn

Bega Cheese has succeeded in gaining financial assistance to conduct an environmental management system pilot program in the South East.

Federal Environment Minister, Dr David Kemp, and the Parliamentary Secretary for Agriculture, Fisheries and Forestry, Senator Judith Troeth, made the announcement today with local MP, Gary Nairn.

Mr Nairn said Bega Cheese would receive $367,500 to help farmers in the region consolidate their clean, green image and to ensure the sustainability of both their properties and the wider environment.

"The environmental management systems (EMS) program is part of the Commonwealth's Natural Heritage Trust," Mr Nairn said.

The Bega Cheese pilot is one of 15 to be funded nationally by the Federal Government.

Senator Troeth said the 15 successful projects, recommended by an independent advisory panel, represent an excellent range of industries, regions, partnerships and natural resource management issues.

Mr Nairn said the Bega Cheese proposal will test EMS through the supply chain from the farm to the factory.

"EMS will be implemented on 20 dairy farms and at the Bega Cheese factory. The project will measure the system's effectiveness in achieving environmental outcomes and production efficiencies.

"The pilot project also includes a life cycle analysis for a block of Bega Cheese to identify environmental inefficiencies from the paddock to the plate.

"The results of the analysis will be incorporated into the Bega Cheese EMS."

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Bega Cheese Does It Again At The 2003 Sydney Royal Show  
April 2, 2003  Bega Cheese

Continuing the tradition of recent years, Bega Cheese has once again scooped the pool in this year's Sydney Royal Show Cheese and Dairy Products Competition. This hard fought and highly prestigious dairy competition with hundreds of entries from all over Australia has seen Bega Cheese secure the two major titles of Most Successful Exhibitor in the cheddar cheese class and Most Successful Exhibitor in the butter section.

Bega picked up a total of 4 Gold and 7 Silver medals across the cheddar, butter and processed cheese categories.

Commenting on the win, CEO of Bega Cheese, Maurice Van Ryn, said, "It is always pleasing to see our fine reputation in the market place vindicated by our strong results at the State Royal Shows. Our products are matched against those from other dairy companies from all over Australia, with blind tastings performed by experienced Judges determining the winner."

"It is a tremendous acknowledgement of the production staff at Bega Cheese who are responsible for manufacturing the high quality products that are entered in the show."

Bega Cheese also had its "Strong and Bitey" Vintage Cheddar selected for "The Australian Cheese Board". Each year the leading cheeses in the show are rejudged by a panel of celebrity judges to appear on the Australian Cheese Board, which receives many accolades by food writers and connoisseurs. Bega's Vintage Cheddar was selected this year to appear on the Australian Cheese Board.

Bega Cheese's factory, situated on the South Coast of NSW, produces 13,000 tonnes of cheddar per year from milk supplied by its 120 owner members. Also produced is about 1,000 tonnes of butter and 7,000 tonnes of whey powder.

Bega's value adding cut, pack and cheese processing plant will this year produce about 45,000 tonnes of consumer packs of cheese for the retail and food service markets.

For further information please contact:

Maurice Van Ryn
Chief Executive Officer
Bega Cheese

Ph: (02) 6491 7777
Fax: (02) 6492 3358
E-mail:

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Bega Cheese Expansion Project Opened by Premier Carr   January 22, 2003  Bega Cheese

The $20 million expansion of the Bega Cheese cutting, packaging and cheese processing plant was officially opened on Friday, 17 January 2003, by NSW Premier, Mr Bob Carr.

Mr Carr described the expanded Bega Cheese facility as a 'jobs powerhouse' during the official opening ceremony, which was attended by various business people of the Bega Valley, together with Bega Valley Shire Council Mayor, Cr David Hede, and Deputy Mayor, Cr Bill Taylor, Member for Bega Russell Smith, and local Labor candidate, Mrs Wilma Chinnock.

Immediately prior to the official opening Mr Carr, his wife, and Mrs Chinnock were escorted on a tour of the Bega Cheese factory, where they were able to meet and speak briefly with various factory staff, and have a first hand view of the building extensions and new equipment implemented in the recent project.

The expansion was made possible following as a result of a $20 million loan from the State Government, approved in April 2002. The loan is part of a program designed specifically to help co-operatives, like the Bega Cheese company, to expand and develop in regional areas. A further advantage in this type of loan, is that co-operatives are able to take advantage of tax concessions available under the Federal Government's Income Tax Assessment Act.

The expansions at the plant includes the installation of a high-speed natural cheese slicing line, imported from Germany with all of today's leading technology, and the introduction of robotics to the factory, with a state-of-the-art de-cartoning and de-palletising machine developed in New Zealand. Also included in the expansion project was the addition of new over-wrapping equipment, using the latest technologies developed in New Zealand and Italy. Bega Cheese operates under one of the highest environmental standards in the food processing industry, complementing the quality that is synonymous with the Bega Cheese brand.

In his address to the audience, Mr Carr made mention of the additional staff numbers required to run the plant, bringing the employed figure to around 500 staff, and the $30 million per annum injection into the local economy that this expansion has created. "This is fantastic news and a win for the families in the Bega area," Mr Carr said.

Chairman of Bega Cheese, Barry Irvin, commented, "The completion of this project is a clear sign of the State Government working with the business community for the benefit of regional New South Wales."

In this period of severe drought within the Bega Valley, this is one piece of good news that will be of long term benefit to our farmers and local community.

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Bega Cheese Announces Major Drought Support Initiative  December 3, 2002  Bega Cheese

Bega Cheese's Annual General Meeting was the venue for some good news for dairy farmers on the lower south coast of New South Wales. Battling one of the worst droughts in memory, and record fodder prices, dairy farmers were delighted when Chairman Barry Irvin announced a special drought support payment for the months of November, December and January of 5 cents per litre. This represents a 20% increase on Bega Cheese's previously announced pay rates.

Bega Cheese has taken a number of measures in an effort to support its suppliers in the Bega district, having previously increased its pay rates, and released $1.4 million in dividend payments early to its farmer shareholders.

Barry Irvin said that it was the Board and management's view that increases in returns of this magnitude were necessary to ensure the local industry did not suffer long term damage as a result of the current circumstances.

"Bega Cheese believes that this is an investment in the future of our dairy industry. Bega Cheese's reputation has been built on premium quality efficiently produced product, our farmers are the first link in this chain, and in the current environment require support from their dairy company; which we are of course pleased to provide," Mr Irvin said.

The strength of Bega Cheese's balance sheet allows this almost unheard of level of assistance to farmers by an individual company. "We do not expect to be able to regain the funds we have committed to our farmers from the market place. This initiative has been agreed to and supported by our lender, Rabobank, and will involve an allocation of some of our funding arrangements."

Bega Cheese's announcement was in fact followed by a small amount of rain in the afternoon, giving farmers further reason to smile in what is still a very difficult period.


For more information, contact:
Barry Irvin, Chairman Bega Cheese
Phone: 6491 7777

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Bega Cheese Posts Strong Result But Drought Starting To Hit Dairy Industry Hard 
 November 28, 2002  Bega Cheese

Bega Cheese this week announced a record profit for the 2001-2002 financial year, however the focus for the industry at this time is on coping with one of the worst droughts on record, rather than reflecting on the previous year's financial performance.

Bega Cheese posted a profit of $7.792 million from ordinary trading activities and before dividends and distributions to members.

Commenting on the result, Chairman of Bega Cheese, Barry Irvin said, "The profit of over $7 million for the last financial year was obviously pleasing from a Bega Cheese business perspective; however that pleasure has been short lived because of the very severe drought condition now prevailing in the valley. The situation on most dairy farmers is now desperate, with a shortage of both water and feed. Purchased feed costs are at levels never seen before, and that's only relevant if you can in fact get access to stock feed which is becoming increasingly scarce."

Bega Cheese has looked to help its members as best it can by increasing spring pay-rates, suspending its capital raising scheme, and early payment of its annual dividend. However Chairman Barry Irvin, commenting on the drought, said "Unfortunately there is nothing that the Co-operative can do to make up for the lack of rain, and the exorbitant feed costs that prevail at this time. We are currently reviewing what other support initiatives we can put in place to assist our dairy farmer members to get through this drought".

Picking up the key statistics from the 2001 – 2002 result announced this week, revenue was up $55 million from the previous year to a total of $186 million, bulk cheese production was 14,657 tonnes, up 2100 tonnes on the previous year, and local milk production off farm was 147.4 million litres, up some 4% on the prior year.

The big rise in revenue reflected the benefits of the transaction completed in 2001 with Bonlac Foods Limited, and Fonterra (then NZ Dairy Board), starting to flow through into the business.

The cut, pack and processing plant was the main beneficiary of that transaction, and throughput for the year ended June 2002 was 24,685 tonnes of value added consumer packs, well over 100% up on the prior year's 10,678 tonnes.

The full integration of the Bonlac business into the Bega plant was not completed until near the end of the financial year, and this is reflected by next year's budget for this plant being around 40,000 tonnes of output.

Export sales of Bega product totalled 10,966 tonnes of product, worth $34.3 million. This was split between some $15.1 million in value added consumer packs, and $19.3 million in bulk commodity cheese, butter and whey powder.

Average pay-rate to farmers for the year for milk was 33.5 cpl which was an increase of 3.5 cpl or 12% over the previous year.

For further information contact:
B Irvin
Chairman – Bega Cheese
Phone No: 6491 7777
Mobile: 0418 203 029

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Bega Cheese Wins 5th Industry Award In As Many Weeks   November 5, 2002  Bega Cheese

Culminating a good run over the last few weeks, Bega Cheese last week won the highly respected '2002 Premier's NSW Exporter of the Year Awards', for Excellence in Food Marketing to Asia. At a presentation ceremony held at Darling Harbour Convention Centre, and attended by over 600 persons including leading politicians, food industry personnel, and related industry service providers, Bega Cheese was showcased for the growth it has achieved in value-added exports to the south east Asian region over the last 5 years.

This award came on top of four other very fine recognitions over recent weeks, which included:

  • The only two gold medals in the cheddar cheese classes at the Royal Melbourne Show, together with the Champion Cheddar Award for Strong & Bitey cheese
  • The Regional Express Business Achievement Award 2002, presented by The Canberra Business Council, in Canberra two weeks ago
  • The Rabobank – Monash University Excellence in Exports Award
  • The Bega Chamber of Commerce Special Award for Contribution to The Local Business Community.

CEO of Bega Cheese, Maurice Van Ryn, in commenting on these awards, said "We have in fact been a little overwhelmed by winning so many industry awards in such a short space of time. It is, however, gratifying to be recognised by independent experts for the effort that everyone at Bega has put in; that is, in transforming the locally based Bega operations into a business of major contribution and relevance within the Australian and international dairy industry.

"These awards have a practical side to them, in that they reinforce to our customers, suppliers, bankers, employees and shareholders, on the quality of the assets and business that we now have in Bega. These awards continue to build the value and prestige of the Bega brand name and the very positive view that the Australian food and dairy industry has about the Bega Cheese company. The awards are a tribute to the quality or product produced at Bega, and the dedicated long term staff of the company that have managed the growth and recent transformation of the business to what it is today."

For more information, please contact:
Maurice Van Ryn
Chief Executive Officer
Phone: (02) 6491 7777
E-mail:



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Bega Cheese Recognised With Major Agribusiness Award   November 5, 2002  Bega Cheese

Bega Cheese this week secured the highly prestigious Rabobank – Monash University Award for Export, at a gala presentation night staged in Melbourne, and attended by most of Australia's leading Agribusiness companies.

Commenting on Bega Cheese's recognition of its efforts in promoting exports, CEO of Bega Cheese, Maurice Van Ryn, said "It was certainly most satisfying for Bega to be recognised for its export growth, not only from just within the dairy industry, but by our colleagues in the wider Australian food industry.

"We were up against some major Australian companies in the consideration of this award. I think what secured it for us was our impressive rate of business growth in the value added consumer packs which we are exporting, as distinct from the lesser value commodity products for which Australian exports are more renowned."

Bega Cheese commenced exporting only in 1990, and now exports around $35 million worth of Bega Cheese products per year, in a variety of product lines. Bega's exports of retail consumer packs has grown at around 70% per annum for each of the last 3 years, and are budgeting to do the same in the year ahead. Bega Cheese products can now be found on the supermarket shelves of 30 different countries around the world. This year Bega will produce 13,000 tonnes of bulk commodity cheddar cheese, and cut and pack 42,000 tonnes of consumer packs in natural cheddar and processed cheddar cheese products.

Rabobank, who hosted and sponsored the awards, is the largest and most respected Agribusiness banker in the world. Originating in the Netherlands several hundred years ago, Rabobank specialise in providing banking services to agricultural businesses, and has most of Australia's agricultural sector as its clients, including many farmers as a result of its purchase of PIBA Bank, which services agricultural Australia, several years ago.

CEO of Bega, Maurice Van Ryn, went on to say, "The value in Bega securing this award is in demonstrating to present and potential future customers of Bega around the world, that although Bega is not a large dairy exporter by world standards, we do have a reputation for achieving excellence and quality in our exporting activities, which is hereby recognised by our industry peers.

"Our objective is to continue to open up new off-shore markets as we see our export consumer business providing significant and sustained growth for the Bega Cheese business into the future. The award reflects the world cost competitive business that we now have in Bega, and the expertise which our staff have built up over the last 10 years, and it is a credit to all our Bega staff involved in the supply chain, that we can achieve this recognition within the Australian food industry."

For further information, please contact:

Maurice Van Ryn
Chief Executive Officer
Bega Cheese
Ph: (02) 6491 7777
E-mail:



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Bega Cheese Wins Gold at the Royal Melbourne Show   October 29, 2002  Bega Cheese

At Australia's premier dairy competition, the Royal Melbourne Show, centred in the dairy state of Victoria, Bega Cheese has secured the only two gold medals that were awarded in the cheddar cheese categories; proving once again that Bega Cheese is the number one cheddar cheese company in Australia.

Bega won gold with its 'Strong & Bitey' vintage cheddar, which also secured it the Champion's Cup in cheddar cheese.

Bega also secured the only gold medal in the processed cheddar cheese classes, with its Bega Super Slices processed cheddar cheese slice. Considering the volume of cheddar cheese produced by Australia, this is a tremendous coup for the Bega Cheese company and confirms its commitment and focus to the cheddar section of the Australian dairy industry.

This year, Bega will produce about 14,000 mt of cheddar from its bulk cheese manufacturing plant in Bega, and turn out about 42,000 mt of processed cheddar cheese slices, and natural cheddar blocks, in retail and food service consumer packs.

Commenting on the win, CEO of Bega Cheese, Maurice Van Ryn, said "It is always pleasing to have one's effort in the business confirmed by industry peers at the national dairy shows. It confirms to our Australian and international customers that Bega is the most dedicated cheddar cheese company in Australia, producing a very high quality product. It is a tribute to our very competent staff, and the high quality milk supplied by the shareholders of Bega."


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Australian Dairy Exports Reach Record $3.25 Billion   August 20, 2002  Australian Dairy Corporation

Australian dairy exports have again hit record highs – for the 2001/02 year, they reached the $3.25 billion mark - $250 million more than last year's record.

Exports continue to account for more than 50% of Australian milk production and growing and this trend is expected to continue, especially in light of relatively static domestic consumption and increasing production.

The Managing Director of the Australian Dairy Corporation, Mr Sandy Murdoch, said that the 2001/02 result reflected increased export volumes which more than offset deteriorating global prices prevailing since late 2001. The 2001/02 year had started well with the key economic factors for dairy farmers all being favourable.

"Strong commodity prices, favourable exchange rates, low interest rates and low inflation all helped our farmers. In many dairy producing regions, farmers also benefited from good seasonal conditions," said Mr Murdoch.

"However, since late last year, international prices had fallen, the Australian dollar had strengthened and interest rates had increased. Viewed in this light, the $3.25 billion export result was an excellent outcome for the industry. It shows that our commitment to developing long-term export markets and relationships in addition to maintaining a very strong image as a 'clean green' producer, is holding the industry in good stead in the more difficult market environment."

Figures compiled by the Australian Bureau of Statistics show that export sales of Australian dairy products have now increased in value by more than $1 billion over the past two years.

"The dairy industry is the nation's largest exporter of manufactured food products and the third largest agricultural exporter. Despite the recent fall in international prices, we believe there will be many growth opportunities in the future, particularly if we can gain greater access to the heavily protected markets of Europe and North America," said Mr Murdoch.

Japan continues to be Australia's largest export customer with $570.1 million of purchases during the year. The Philippines was the second largest with $326.9 million followed by Saudi Arabia with $219.7 million.

Export production for the year was 950,478 tonnes, compared with 919,930 for the previous year.

For further information:

Sandy Murdoch
Managing Director
Australian Dairy Corporation
(03) 9694 3793

or:

John McKew
Industry Relations Manager
Australian Dairy Corporation
(03) 9694 3834

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Statement in Relation to Ownership of The Bega Brand   August 2, 2002  Bega Cheese

Recent press statements have suggested that the Bega brand has been sold to overseas interests. These statements are incorrect and misrepresent the origin and ownership of Bega branded cheese.

The Bega brand is wholly owned by The Bega Co-operative Society Limited. The Bega Co-operative Society Limited operates out of Bega, on the south coast of NSW and has been established for over 100 years. The Bega Co-operative Society Limited is an Australian Co-operative, wholly owned by 130 dairy farmers based in the Bega Valley and surrounding dairying district.

In April 2001 The Bega Co-operative Society Limited entered into a licence agreement which provided Bonland Dairies Pty Ltd access to and use of the Bega brand for selling and marketing cheese in Australia only, in exchange for commercial royalties payable to The Bega Co-operative Society Limited. Bonland Dairies Pty Ltd is now owned by Australasian Food Holdings (Australia) Pty Ltd, which is controlled by Fonterra Co-operative Group, a large New Zealand farmer owned co-operative.
The Bega Co-operative Society Limited supplies the natural and processed cheese sold by Bonland Dairies Pty Ltd in the Bega brand and other brands from Bega.
The Bega Co-operative Society Limited has recently completed a major expansion of its cutting and processing facility at Bega costing over $25 million and increasing capacity by 200% to 50,000 tonnes of cheese per year. This expansion, which has increased the work force from 200 staff 3 years ago to over 450 staff today, has created one of the most modern and efficient plants in the world. Sales revenue has grown significantly, and is expected to exceed $250 million in 2003. This expansion has been undertaken with assistance from both the Federal and State Governments, and has created major economic benefits for the community of Bega and regional Australia.

The Bega Co-operative Society Limited retains ownership and direct use of the Bega brand and other brands for cheese and other products sold by it outside of Australia, to strong export markets including New Zealand, South East Asia, China and the Middle East. The Bega Co-operative Society Limited may also use the Bega brand on other non-cheese products it sells in Australia, outside its licence arrangements with Bonland Dairies Pty Ltd.

If you have any queries about the ownership of the Bega brand or operations of the Bega Co-operative Society Limited please contact:

Maurice Van Ryn
Chief Executive Officer
(02) 6491 7777		 Colin Griffin
General Manager Finance/Company Secretary
(02) 6491 7777

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Bega Cheese Welcomes Continuing Support For Local Dairy Industry By Federal Government    June 6, 2002 Bega Cheese
On 22 May 2002, the Hon Peter Costello, Treasurer, visited Bega Cheese and announced that Bega Cheese has been successful in its application for Federal Government assistance under the Dairy Regional Assistance Program (Dairy RAP). Gary Nairn, Member for Eden-Monaro, was also on hand at the announcement, and was a key supporter of Bega Cheese's second successful Dairy RAP project.

Maurice Van Ryn, Chief Executive Officer of Bega Cheese, was quick to acknowledge the support of Gary Nairn and the Federal Government, stating "Bega Cheese is delighted to be the recipient of support for the local dairy industry from the Federal Government. The confirmation of a $770,000 grant under Dairy RAP is a further shot in the arm and confidence builder for the dairy industry based in the Bega Valley."

Like all dairying regions in Australia, Bega is looking to overcome the effects of the deregulation of the industry in July 2000, and it is achieving this by pro-active investment in its Bega based production facilities.

Commenting on the grant, Bega Cheese Chairman, Barry Irvin said, "This money will be of benefit to Bega farmers and the local community. The money will be used in expanding our cheese manufacturing operations beyond our current capacity. This will allow the dairy farmers in the Bega Valley to expand their operations and supply more milk to the factory. The follow-on effect of this will be more jobs in the factory, as well as on the dairy farms. Improved efficiency is the logical response to dealing with the effects of deregulation on the local industry."

The expansion of Bega's core cheddar cheese making operations is a further step in the dramatic transformation of the Bega Cheese business as it grapples with deregulation and positions itself in a free trade global market place.

Over the last few years Bega Cheese has constructed a major cutting and processing plant for consumer products, and completed a major restructure of its Australian marketing arrangements in partnership with Bonlac Foods Ltd and Fonterra Ltd.

Supported by the Federal Government Dairy RAP assistance, Bega Cheese has repositioned its business to produce value-added consumer packs for both the domestic and international markets, and to reduce its dependence on fresh milk supply to the city drinking markets, and on bulk cheddar export sales.

Mr Irvin went on to say, "Like the Federal Government, we also see the support of these projects as demonstrating how the Government and the community can work in partnership to achieve real gains for regional communities such as the Bega Valley, and we sincerely thank our local Member, Mr Gary Nairn, who has been extremely supportive of Bega Cheese at all times, and also the Federal Government's Dairy RAP selection committee for choosing to support our worthy project."

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Bega Cheese – A Company on the Move    June 6, 2002 Bega Cheese
Anyone following the fortunes of companies in the Australian dairy industry should be well aware of the corporate manoeuvres that Bega Cheese has made over the last 12 months. This article reflects on the Bega Cheese business as it stands today, and its increasing importance in the value adding of Australian dairy products.

The transaction completed by Bega Cheese with Bonlac Foods Ltd and Fonterra (then NZDB) just over 12 months ago, saw the formation of Bonland Dairies Ltd, a 50/50 joint venture between Bonlac and Fonterra, responsible for the marketing in the Australian market of all those dairy brands previously separately managed by Bega, Bonlac and Mainland. This brought together a powerful stable of brands and a competitively sized business with which to tackle the future dynamics of the Australian retail scene.

In return for Bega franchising their brand into Bonland, they received cash, royalty stream and the promise of a major lift in their production output from the Bega based cut, pack and processed cheese plant.

The Bega brand is now successfully being managed through the Bonland company, and the Bega company has been spending the last 12 months in undertaking the massive task of transferring Bonlac's long held business of cheese cutting, packaging and processing from its York Street Melbourne location, to the Bega factory. The Bega Cheese cut, pack and processed cheese plant was commissioned in 1998, and had built its business up steadily to the time of the major transaction, to about 10,000 tonnes of output.

However the integration of the Bonlac business, which was completed last month, will see Bega's annual production volumes of value added consumer packs rise to some 40,000 tonnes, worth approximately $200 million. In addition to this, Bega still retains its traditional businesses of bulk cheddar, whey powder and butter production, as well as fresh daily milk supply to the Sydney and Canberra markets.

The expansion in the Bega business over the last 12 months has seen a massive lift in capital expenditure. Close to $30 million will have been spent over a 24 month period, incorporating increased processed cheese line capacity, new high speed cutting and packing lines, automation within the plant, additional storage capability for dry goods and chilled finished goods, as well as a continuing upgrade of its core cheddar and whey powder manufacturing facilities.

The impact of all this economic activity is not unnoticed in Bega. The capital expenditure has flowed through to the local community as has the uplift in employment. Staff numbers at Bega Cheese are around 450, a major lift on prior years, and Bega is clearly the largest single economic contributor to the Bega Valley region.

Reflecting on where Bega Cheese has got to, Chief Executive Officer of Bega Cheese, Maurice Van Ryn, commented that "Bega Cheese really has a world class, cost competitive plant now. We are very comfortable with our position in the Australian market, and our relationship with Bonland Dairies Ltd. Through Bega's plant we supply a significant portion of cheese products through to the Australian supermarket trade.

"Our challenge now is to continue this growth into international markets. We have made good inroads in growing sales of our value added dairy products into international markets, but we have only scratched the surface. Given our competitive cost base, and greatly expanded capacity, our eyes are firmly set now on doubling the size of our business yet again."

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Bega Cheese Secures $20million Government Loan    April 11, 2002 Bega Cheese
As part of the significant expansion of Bega Cheese's business a total review of the Co-operative's financing has recently been completed. This review has resulted in establishing new corporate banking facilities with Rabo Australia Ltd, and extending our arrangements with NSW Treasury Corporation.

Last Thursday, Colin Griffin and I were pleased to receive an invitation from the Premier, the Hon Bob Carr, to attend NSW Parliament and participate in the announcement of an additional $19.8 million loan from Treasury Corporation.

In Parliament, the Premier was pleased to recognise that "Bega Cheese has been an outstanding performer in both the domestic and international dairy market". Mr Carr went on to explain that the NSW Government had established the loan facilities from NSW Treasury in 1997 for the benefit of New South Wales based co-operatives to access funds for development.

At the end of question time, Colin and myself were given the opportunity to meet with Mr Carr and Aldo Pennini, his senior advisor, to briefly discuss the dairy industry in the Bega Valley. Bega Cheese continues to look to work with the state and federal governments to ensure that both are well informed on industry development and issues that affect the Bega Co-operative and its members.

The expansion of facilities at both Ridge Street and Lagoon Street was outlined at the last round of supplier meetings. Total expenditure currently being undertaken or planned within the next two years amounts to a total of $30m. The new facilities that have been established with NSW Treasury Corporation and Rabo are critical to the implementation of our recently completed 5 year business and financial plan.

It must be emphasised that the current funding arrangements do not represent any significant change in Bega Cheese's business plan or any significant new projects. Bega Cheese as a growing business, requires funding for not only capital projects, but also stock, debtors and normal day to day business requirements.

Accessing funds from state government is a very tax effective way of managing the funding requirements for capital projects. The financing of our stock debtors etc is provided from our own resources, combined with facilities now provided by Rabobank.

The establishment of these new funding facilities provide significant financial advantage to Bega Cheese and credit should be paid to management, particularly Colin Griffin and Brett Kelly, who have worked closely with the finance committee, which includes Directors Richard Parbery and Tom D'Arcy.

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Cheese Single Desk Sales to Japan to Cease     March 1, 2002 Bega Cheese
Single desk selling arrangements under which the Australian Dairy Corporation (ADC) manages sales of Australian cheese for processing and shredding to the Japanese market are to cease from June 20, 2002.

The decision, made by the ADC Board, follows a 6-month review of the single desk undertaken by the Australian dairy industry. The review culminated in the Australian Dairy Products Federation (ADPF) and the Australian Dairy Industry Council (ADIC) reaching an agreed position to request the ADC to cease single desk selling arrangements for cheese to Japan from June 30, 2002.

Whilst the decision will see the conclusion of single desk cheese sales to Japan from the end of June 2002, an industry position is still to be determined relating to sales of skim milk powder (SMP) and butter to Japan and cheese sales to the EU, also administered by the ADC. The future of the industry's representative office in Japan, which opened in 1964 and now comprises seven staff, is also to be resolved.

The ADC's Managing Director, Mr Sandy Murdoch said that over the last decade Australia had grown both its volume and market share of cheese imports into Japan.

"The single desk has contributed to Australia becoming the largest supplier of cheese to that market."

"Over the same period we have witnessed significant consolidation within the Australian dairy industry, especially the manufacturing sector. This means individual dairy companies are now well placed to manage this business in their own right."

"The ADC will continue to work closely with the industry over the coming months to ensure a smooth transition of the Japan cheese business," said Mr Murdoch.

No legislative changes are required following the decision.

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Award Adds to the Rewards of Exporting for Bega    February 8, 2002 Bega Cheese
Bega Cheese's export success was recently recognised when it won the Australian Business President's Award for Export and Trade. Australian Business, the re-named Australian Chamber of Manufacturers, held a gala presentation at Darling Harbour, Sydney, late last year.

On receiving the award, Bega's CEO, Maurice Van Ryn, said the co-operative's export success was due to a combination of business growth, market diversity, and quality service and products.

"Over the past 12 months, Bega Cheese has grown its exports of value-added consumer products by some 78%. We have reached into new markets as diverse as Bahrain, Cuba, Libya and Mauritius, in addition to our traditional south-east and northern Asian markets," he said.

Mr Van Ryn attributed Bega Cheese's export growth to the 1998 construction of its dedicated cut, pack and process plant in north Bega. The plant, which is set to produce some 40,000 tonnes of consumer packs in 2002, is the largest plant of its type in the southern hemisphere.

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Year of Major Achievement for Bega Cheese     November 30, 2001 Bega Cheese
Bega Cheese presented its annual report to shareholders on Friday 30 November, reporting on the results of the Co-operative for the year ended June 30th, 2001.

The past year has been one of major achievement for the Co-operative, both in terms of profits earned, as well as in the impact on the future growth and prosperity of the company as a result of the transaction completed with Bonlac and the then New Zealand Dairy Board (now Fonterra Group), during the year.

Bega Cheese's normal trading result was a record profit of $5.748 million, which was particularly pleasing in this first year of dairy deregulation. In addition to this, the Co-operative also recorded an extraordinary profit on the restructure of its brand marketing arrangements with Bonlac and Fonterra, which lifted the final net profit after tax and special member distributions to some $35.981 million.

The effects of deregulation on the Co-operative were in lower milk intake, and lower sales of milk to the Sydney market. These negatives were off-set by rising world commodity prices, and an improving performance by the recently constructed cut, pack and processing plant.

Gross outputs from the Bega Cheese business were 12,562 tonnes of bulk cheese, 6,183 tonnes of whey powder, and 10,678 tonnes of cut, pack and processed consumer goods. Total milk intake from all sources was 182.5 million litres, with some 51.5 million litres of fresh milk supplied to the Sydney and Canberra markets.

As well as the strong financial result recorded for the year, the future for the Co-operative to grow rapidly has been well secured by the restructure transaction completed in May 2001. This will see the Bonlac cut, pack and processing plant closed by April 2002, and some 30,000 tonnes of existing cut, pack and processed cheese business transferred from Melbourne to the new Bega plant.

To date about half of this business has already been transferred with the balance time-tabled for transfer by April 2002.

This has had a very positive impact on the local economy with strong new employment generated at the Co-operative, which now sees well over 450 staff employed.

Bega Cheese exports for the 12 months ended June 30th 2001, totalled $33.358 million, with sales of value added consumer packs growing by 78% over the previous year.

Net assets, or the shareholder's equity of the Co-operative, grew from $35.5 million in the 2000 year to $68.5 million for the 12 months ended June 2001, and cash flow for the year was a positive $29.3 million.

Bega Cheese looked to support members during the year via special distributions associated with the restructure transaction totalling $16 million, as well as a 2 cent per litre Co-operative premium distribution over milk totalling $2.939 million, generated from the trading result.

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Bega Cheese Export Success    November 21, 2001 Bega Cheese
The growth and success of Bega Cheese's exporting efforts continues to be recognised by industry peers in Australia.

Bega Cheese's recent win of the prestigious Australian Business President's Award, for Export and Trade, is a fine tribute to the emergence of Bega Cheese as an exporter over recent years.

Australian Business, which is the re-named Australian Chamber of Manufacturers, held a gala presentation night in Darling Harbour during November, at which only 5 awards were presented to companies which excelled in particular categories, so it was no easy feat to win recognition on the night. On commenting why Bega Cheese won this prestigious award, CEO of Bega Cheese, Maurice Van Ryn said, "Bega's recognised success in exports is a combination of business growth, diversity of markets, quality of service, and quality of product. Over the last 12 months Bega Cheese has grown its exports of value-added consumer products by some 78%, and we have reached into new markets as diverse as Bahrain, Cuba, Libya and Mauritius, in addition to our traditional South East Asian and northern Asian markets."

The catalyst for Bega Cheese's export growth has been the construction in 1998 of its dedicated cut, pack and process plant, in North Bega. The Bega Cheese plant is set to produce some 40,000 tonnes of consumer packs in 2002, which would make it the largest plant of its type in the southern hemisphere, which is quite remarkable given some of the major international and national dairy companies that Bega competes against in the region.

In commenting on Bega's growth in export sales, CEO Maurice Van Ryn went on to say, "The outlook for the future is extremely bright for Australian dairy exports. There are a number of key factors that will underpin our growth, being:
  • China's entry into the WTO, which will see import tariffs for cheese into China drop from 50% to 12% by 2005. China is already Bega's largest export market, and this is set to grow rapidly given the massive drop in import duty.
  • The recent world wide commitment to resume WTO talks, which is likely to open up world trade, the result of which will be a major boost in returns for Australian agriculture.
  • Australia's ever enhancing reputation as a 'clean, green' source of food products. Europe's recent troubles with foot and mouth, BSE, dioxins, etc, and recent scares in Japan, have made Australia New Zealand an even more desirable source of dairy products and foodstuffs generally.
  • The developing world's massive growth in dairy consumption has limited supply options, and Bega Cheese with its world class processed cheese plant is ideally placed to capture a significant share of this growth."

Mr Van Ryn also paid tribute to the quality of service that Bega provides with its export sales. Bega now has a dedicated export administration staff of four, backed up by the necessary logistical and technical expertise to service international customers' requirements. "We have a reputation for getting the order right, the complicated paper work right, and of course the product quality right. It sounds a simple thing to do, but unfortunately so many companies seem unable to achieve it, which is to our advantage."

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Major Export Boost for Bega Cheese     September 27, 2001 Gary Nairn MP
Bega Cheese has been approved to export dairy products to Brazil, Gary Nairn, Federal Member for Eden-Monaro, announced today.

The Federal Minister for Agriculture, Fisheries and Forestry, the Hon Warren Truss, has advised that Bega Cheese, along with 13 other Australian businesses has been given accreditation which will enable them to increase their exports of Australian cheese, milk, butter and other dairy products.

"This is exciting news for Bega Cheese and the management and staff must be congratulated on this success," Gary Nairn said.

"Current AQIS export legislation meets Brazilian requirements, however, Brazilian legislation requires separate inspections by their authorities of any businesses preparing and processing products for export to their country."

A Brazilian quarantine official visited Australia in mid-2001 to inspect dairy establishments which led to the approval being granted. The visit was jointly funded by the Department of Agriculture, Fisheries and Forestry and the Australian Dairy Corporation.

"Minister Truss advises that with these recent approvals, about 40 Australian establishments have now been approved to export dairy products to Brazil since 1996," Gary Nairn added.

Brazil in the 1990's was an important and growing market for Australian dairy products and in 1996 received $31 million in exports. However, changes to Brazilian import arrangements, increased export costs and growing market instability saw that value of Australian exports drop to $1 million by 2000.

Brazilian authorities are currently considering recognition of Australia's export dairy inspection and certification system and the Australian Government is working hard to achieve a positive decision in the near future. Such recognition would remove the need for separate facility inspections.

"The accreditation gained by Bega Cheese today opens an expanding export market to them and I will continue to support their efforts in developing this company to its full potential," Gary Nairn concluded.

For further information contact Gary Nairn on (02) 6297 3952 or after hours on 0419 420 108

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Dairy Exports Top $3billion     August 14, 2001 Australian Dairy Corporation
Annual Australian dairy exports topped the $3 billion mark for the first time during the 12 months ended 30 June 2001.

The Managing Director of the Australian Dairy Corporation, Mr Sandy Murdoch, said that favourable exchange rates and firm prices globally for dairy products were primary factors in the result.

With an increased global focus on food safety in the first half of 2001, Australia's reputation as a reliable producer of safe, quality product also helped sustain demand for Australian dairy products on world markets.

"The total value of Australian dairy exports increased by nearly 25% during the 2000/01 year compared to the previous financial year. This was achieved despite a fall in Australian milk production volumes of 2.7%," said Mr Murdoch.

As a result, export volumes were generally lower in most key categories but excellent prices had been achieved.

Figures compiled by the Australian Bureau of Statistics show that during the 12-month period from July to June 2001, total Australian dairy exports were valued at A$3.006 billion. This compares to A$2.418 billion for the same period in 1999/00.

"Australian cheese and milk powders have been in strong demand throughout the year. The value of non-cheddar cheese sales increased by more than 34% during the 12 months and the overall value of milk powder sales rose by more than 40%," he said.

"In value terms, all types of cheese, including cheddar, contributed nearly A$1 billion to Australia's economy," said Mr Murdoch.

"Milk powders have also been consistently sought after during the year. The value of whole milk powder exports rose by more than 40% to more than A$727 million. The values of whey powder exports increased by nearly 50% and skim milk powder/butter milk powder recorded an increase of nearly 42%," said Mr Murdoch.

"The dairy industry has firmly established itself as Australia's third largest agricultural export performer and the number one exporter of manufactured food products. With the current outlook pointing to continuing strong demand and firm prices, we expect it can continue to build on this success story in the year ahead," said Mr Murdoch.

For further information:
Sandy Murdoch
Managing Director
Australian Dairy Corporation
Phone: (03) 9694 3793.
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