Bega Cheese, which is a key supplier to infant formula maker Bellamy's, says it is in discussion with the troubled company over supply arrangements and volume forecasts.
Chairman Barry Irvin said there were signs of short term oversupply of infant formula in the Chinese market, but reiterated Bega's guidance issued in October and said his company had a strong ongoing profitable business in multiple categories.
The update follows an announcement by Bellamy's earlier on Wednesday, in which it extended the suspension of its shares into the new year as it works out the financial impact of negotiations with key suppliers and manufacturers.
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