$20 million COVID-19 hit for Bega Cheese

By Geoff Adams

Feb 25, 2022

Pandemic pain: Bega Cheese chairman Barry Irvin says COVID-19 costs will continue into the second half of the financial year. Photo by contributed

Bega Cheese has estimated its COVID-19 costs at more than $20 million for the first half of the financial year.

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The full-year impact is likely to be more, as the company said January this year was one of the worst months for the pandemic impact.

Chief financial officer Peter Findlay described January as a “very difficult” month for COVID-19 impact, but he and chairman Barry Irvin said February was not as severe and they were hoping March was further improved.

Staff absences were one of the biggest costs hitting the food processor, with decreased labour availability and costs in plants and distribution centres.

The figure was revealed on February 24 in the company’s half-yearly report, which recorded a $1.5 billion turnover and an after tax profit of $35 million.

The company said COVID-19 had significant impact on food service and convenience channels from lockdowns, restricted travel movement and staff availability.

“The international supply chain disruption imposed significant cost increases on imported and exported goods,’’ the company’s presentation said.

“Domestic supply chain disruption has impacted manufacturing schedules and customer service levels.”

By Geoff Adams

Shepparton News assistant editor and Country News journalist