Farm Fresh Clarifies Share Price Volatility and Impact of Australian Milk Production Decline
Farm Fresh Bhd, a leading agricultural company, has voluntarily provided an announcement to clarify the recent share price volatility and unusual trading activity of its shares on Bursa Malaysia. The company wants to provide clarity to the public regarding the market price fluctuations and trading volume of Farm Fresh shares.
On July 4, 2023, Farm Fresh witnessed a significant drop in its trading stock, reaching an all-time low of 99 sen per share. However, it closed the session at RM1.14 with a record trading volume of 77.38 million shares. In response to these developments, Farm Fresh filed a clarification with Bursa Malaysia to address the circulating rumors about the company.
The company sought to clarify that it is relatively less affected by the decrease in Australian milk production, unlike Australian dairy giant Bega Group. While Farm Fresh does experience some impact from the decline in farmgate milk prices in Australia due to its purchase of milk ingredients from third-party farmers in the country, this is expected to account for only approximately 14% of its total milk ingredients. In contrast, Bega Group exclusively relies on milk from farmers in Australia for its requirements.
In midday trading, Farm Fresh shares experienced a slight decrease of three sen or 2.63% to reach RM1.11 per share, with a total of 12.85 million shares being traded.
Farm Fresh’s voluntary announcement aims to alleviate concerns and provide accurate information to shareholders and the public. The company wants to assure investors that it is less impacted by the decline in Australian milk production compared to its industry peers.
By addressing the speculation and providing clarity on its position, Farm Fresh demonstrates transparency and commitment to maintaining a strong reputation. The company’s efforts to clarify the impact of Australian milk production decline and its minimal exposure to such factors reflect its commitment to mitigating risks and fostering investor confidence.
Farm Fresh’s announcement is expected to contribute to a better understanding of the company’s performance and dispel any unfounded rumors or speculations.
