THE DAIRY industry is awash with rumours suggesting embattled co-operative Murray Goulburn may consider pushing for government support to help it through its current financial crisis.
The industry buzz is that MG has met with both the State and Federal Governments, although no formal approach for funding has been made.
Regional Victoria has been the scene of several government interventions recently.
In January this year, the State and Federal Governments agreed to assist Portland-based smelter Alcoa, in January, in July the Victorian Government bought the Australian Sustainable Hardwoods timber mill in Heyfield and in 2014 the Victorian Government propped up the SPC cannery in Shepparton.
Murray Goulburn’s troubles, which started with the ‘clawbacks’ saga amidst a declining international milk price last year, have failed to ease up in spite of a turnaround in the fortunes of dairy internationally.
This year it announced the closure of its Kiewa and Rochester plants, while earlier in the month it said it would lay off 60 milk tanker drivers.
The news of the redundancies comes as rivals such as Fonterra announce large increases in the volume of milk receivals.
Murray Goulburn will hold its annual general meeting towards the end of the month.
The company could not be reached for comment.