Bega Cheese Limited
(ASX:BGA) has signed a product supply agreement with leading multinational dairy company Fonterra Brand’s Pty Ltd Australian arm.
Under the renewed agreement Bega will continue supplying retail cheese to Fonterra under the Bega brand.
It replaces a 2001 agreement granting Fonterra a long term Trade Mark license to use the Bega name on Australian sold products, from which Bega receives a royalty.
The new agreement incorporates a modified costs plus pricing formula that has been in operation since 2011.
Bega achieved net profit of $20.4 million for fiscal 2012.
