Murray Goulburn may enforce a sliding scale cost for shares if it’s proposed capital raising plans go ahead.
Dairy farmers say the cost for suppliers to purchase one share for every kilogram of milk solids supplied, would depend on how many years they’ve supplied MG, The Weekly Times Reports.
Under the plan, suppliers who have been with the co-operative for less than 10 years would pay a higher rate to per share.
A MG spokeswoman said “Firstly, it’s important to reiterate that all matters relating to the capital restructure are preliminary.”
“MG is developing a more detailed proposal and once this is finalised the first step will be to share this with our shareholders via further consultation.
“That said, we are working towards a second round of consultative meetings with Suppliers in the coming few months.”
The capital raising proposal was first floated at MG’s annual general meeting in last November.