Dairy Co-Operative Murray Goulburn (MG) has again defended its retrospective farmgate milk price cuts and denied it didn’t warn suppliers about its financial position early enough.
MG chairman Philip Tracy (pictured) told ABC Rural that, after reviewing its public disclosures on the topic, the co-operative stands by all of them. He maintained MG went into a trading halt as soon as the board realised the financial position.
“Our obligation as directors is to act as soon as we know about new information,” Tracy said. “That’s exactly what we did.”
Prime Minister Malcom Turnbull and Deputy Prime Minister Barnaby Joyce met representatives of MG yesterday to discuss ways of building a more profitable dairy industry that better supports suppliers.
“Australia’s dairy farmers deserve fair returns at the farm gate, as well as transparency in milk price arrangements and supply contracts,” Joyce said in a statement.
“It is important Murray Goulburn can explain to their suppliers what steps they will take to support farmers and restore confidence to the dairy sector.”
According to the statement, they will meet the management of the other major dairy producer Fonterra Australia next week.
In addition, Joyce will chair a dairy symposium, involving representatives from the farming, processing and retail sectors, to be held in Melbourne on August 25.
Meanwhile, the ABC reports that a group of investors has revealed a proposal to re-open a former cheese factory, owned by MG and located in the Northern Victorian town of Leitchville.
The factory closed in 2010.