Meat and dairy company Beston Global Foods will attempt to raise $3 million to expand its high-grade milk protein plant in the Murraylands and spend a further $10 million investing in a new one.
The company is significantly increasing its investment in the baby formula product lactoferrin and predicts it will increase production four-fold as a result.
Based in South Australia, the company announced its Share Purchase Plan to the Australian Stock Exchange (ASX) recently, which will allow shareholders to purchase up to $30,000 worth of shares at 10 cents a share.
The share offer will be open from January 13–31. It follows a repositioning of the company last year to focus on meat, dairy and meat alternatives. This included the sale of its 32 per cent stake in South Australian seafood company Ferguson Australia to the Ferguson family in November.
Beston owns five dairy farms in South Australia and Victoria with a total herd of 3600 cows. It also has the capacity to produce 30,000 tonnes of cheese a year.
It refurbished and commissioned a Dairy Protein Fractionation Plant at Jervois in late 2018, which it uses to make high-grade lactoferrin from the whey by-product from its mozzarella production.
Lactoferrin is a high-value dairy protein that is mainly known for its use in infant formula and is also used in dairy foods, dietary supplements, and pharmaceutical products including respiratory medications, cosmetics and oral hygiene products.
High-grade milled lactoferrin can sell for up to $2500 per kilogram on global markets.
“Demand exceeds our capacity to produce and is expected to remain substantially so well into the future with major customers in both Australia and overseas,” Beston Global Food Company Chairman Roger Sexton told shareholders in an ASX announcement in November.
Both lactoferrin expansion projects are part of Beston’s “stretching our milk” initiatives, which aim to produce more products from less milk.
Beston Global Food Company listed on the ASX in 2015 and has annual revenues of about $85 million, which it aims to grow to more than $100 million this year.
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