Murray Goulburn (MG) suppliers voiced their hopes things were looking up for Australia's largest dairy foods company, after the co-operatives annual general meeting in Melbourne yesterday.
Tim Dwyer, Maffra, has supplied MG his whole career and said he “...wouldn’t supply anyone else”.
He said that while some suppliers, shareholders and unit-holders vented their frustrations about the board and management’s decisions in the past financial year, ultimately there was a sense of optimism and loyalty expressed at the meeting.
“There’s no point dwelling on the mistakes forever,” Mr Dwyer said.
In April, Murray Goulburn announced a step-down from the $5.60 per kilogram milk solids (kgms) farmgate milk price (FMP) to between $4.75 to $5. They also launched a Milk Supply Support Package, which initally ould clawback the money farmers had been “overpaid” until that point of the financial year as deductions from future milk payments over the next three financial years.
MG chairman Phil Tracy reiterated on Friday, they were co-operating withe the Australian Competition and Consumer Commission and Australian Securities and Investments Commission’s investigations into the co-operative.
However, on Thursday, the day before the AGM, MG announced changes to the MSSP including suspending its recoupment in FY17 and extending the recoupment period from three years to six years.
Numurkah dairy farmer Jim Dealy said he thought the co-operative was “over the worst”.
“Suppliers have got to stick with Murray Goulburn for the next six to eight months to give the company a chance – we can’t afford to lose any more milk supply,” Mr Dealy said.
In questions to the board, he said the MSSP was flawed, for example the company was absorbing the debts of the suppliers who left the company but not the farmers who stayed.
Mr Dealy said his family – sons Greg and Ryan also milk cows – decided to take out loans to repay their MSSP, at the value of $500,000.
“Now three months later down the track, you’ve scrapped the deductions and I’ve got a bank loan and I’m paying 28 cents on my bank loan,” he said.
“I’m trying to make financial decisions based on your decisions, but you keep changing the goal posts.”
