This is Apparently the Cause of Farm Fresh Shares Falling!

<p>&nbsp;The drastic fall in Farm Fresh shares since last Friday is said to have been influenced by the announcement by Bega Group Australia earlier this week.</p><p><br /></p><p>Earlier, Bega warned that it may face a non-cash impairment of between A$180 million and A$280 million due to a fall in milk production volumes and rising dairy prices.</p><p><br /></p><p>This has sparked concerns over risks that may also affect Farm Fresh's production, prompting a sharp drop in its share price, according to the company in its filing to Bursa Malaysia.</p><p><br /></p><p>However, in a voluntary statement, it explained that it was less affected than Bega Group despite the lower-than-expected drop in farmgate milk prices.</p><p><br /></p><p><br /></p><p>This is because the dairy company only buys about 14% of the total milk ingredients from third-party farmers in Australia.</p><p><br /></p><p>He added that 70% of the raw milk used comes from his own farms in Malaysia and Australia.</p><p><br /></p><p>Following the sharp drop in Farm Fresh shares, RHB Research lowered its rating on the company from 'buy' to 'neutral' with a target price (TP) of RM1.23 from RM1.72 previously.</p><p><br /></p><p>At the time of writing, Farm Fresh shares remained trading gloomy with a drop of 3.5% to around RM1.10.</p>