Uncategorised

Murray Goulburn meets dairy farmers to explain milk price cuts

Dairy processor Murray Goulburn management yesterday met with dairy farmers for the first time since its decision to cut the price it pays suppliers.

The Weekly Times reports that 400 people attended the Camperdown Football club in Victoria’s south-west, for the first of several meetings between the dairy co-operative and its suppliers.

As the ABC reports, about 2,500 dairy farmers in total will be affected by Murray Goulburn’s to cut prices by between 10 and 15 per cent.

Murray Goulburn chairman Philip Tracy said he apologised for the unexpected move and noted that it was an emotional meeting.

“Obviously the suppliers are very disappointed with our announcement but lots of constructive comments were made for the board to take away,” Tracy told the ABC.

“Effectively we have just apologised to the suppliers for the absolute disappointment we’ve created.

“To put them in a position where they’ve had expectation taken away from them.”

Last week’s decision was accompanied by the resignation of managing director Gary Helou as well as a large cut to the co-operative’s profit forecast.

Murray Goulburn now estimates a net profit after tax of between $39 million and $42 million. Originally, in its prospectus, Murray Goulburn had forecast a profit of $89 million. Then in February it lowered that figure to $63 million.

The ABC reports that dairy farmers have started a campaign calling on the public to support them through this hard time. Called “Show Some Dairy Love”, the campaign is taking place on social media.

Send this to a friend