00:01Dairy producer Farm Fresh Bahad is considering a price increase as rising global tensions
00:07linked to the Iran conflict drive up packaging costs, with resin prices for plastic bottles
00:13nearly doubling. Chief Financial Officer Mohamed Khairul Math Hassan said the company is reducing
00:19reliance on Middle East-linked naphtha by sourcing resin from China, with current stock expected to
00:25last until July or August. The grade of plastic resin that we get before of about four to five
00:32thousand ringgit per ton or four to five ringgit per kilogram has now doubled, like literally doubled.
00:38The same grade you can only get it now for eight thousand five eight thousand six hundred ringgit
00:44per ton right so the price literally doubled there. He warned that prolonged disruption around the
00:49Strait of Hormuz could force tougher decisions if costs continue to rise. It is very uncertain
00:55when the blockade on Strait of Hormuz will continue on right then we'll have a big situation we have a
01:02big
01:02decision to make right because plastic price if it keeps soaring up consumers might not be able to take
01:07any more further price increase. Mohamed Khairul assured that milk production remains unaffected
01:12and any price adjustment would likely be modest. Farm Fresh estimates that one litre and two litre
01:19bottled milk could rise by about three percent or roughly 50 cent at retail. The company is also facing
01:26margin pressure from higher diesel and electricity costs even as it explores alternatives such as paper
01:32cartons and glass bottles to reduce the reliance on plastic packaging.
01:49Let's question 1-30 and pay-5-6.
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