The MG Next Generation package includes finance initiatives to support suppliers manage their finances during the present tough business conditions.
MAJOR south-west dairy processor Murray Goulburn (MG) has launched a suite of initiatives to help new and established MG supplier-shareholders tackle the tough times in the industry and develop their businesses.
The MG Next Generation package includes finance initiatives to support suppliers manage their finances during the present tough business conditions.
MG shareholder relations general manager Robert Poole said the company had designed the package around farm business opportunities and increased milk supply in particular.
Increased milk supply would bring mutually beneficial increased returns to farmers and MG, Mr Poole said.
The package provides support beyond the present crisis and includes help for people wanting to get established as a dairy operator and develop their workforce, through to managing a sustainable business and succession of the family farm.
The package includes:
- Medium and short-term finance to assist with cash flow management and business sustainability, as well as upgrades to milk vats for improved farm and supply chain efficiency;
- The option to open up longer-term credit lines at MG trading stores for purchases such as seed, fodder and fertiliser;
- Leasing partnerships to offer MG suppliers or new entrants an alternative to bank debt for business opportunities or industry entry;
- A significant financial support offering (paid as an investment rebate) for young farmers, farming families and new entrants seeking to grow their business, proactively manage succession or enter the dairy industry; and
- Access to employment and immigration resources to address labour market shortages, including immigration advice to assist MG suppliers recruit farm employees.
Mr Poole said the package had been developed in response to calls from supplier shareholders for initiatives to help young and new entrants establish themselves in the dairy industry, attract an appropriate dairy workforce and remove obstacles to profitable farm businesses and farm succession.
"While our primary focus is a higher farm gate milk price through cost leadership and innovation in the MG business, we recognise that there are times in a farm's life that other forms of business support are needed," Mr Poole said.
"These periods are typically when dairy farmers enter the industry, experience tough business conditions or when a dairy business undertakes a rapid growth phase."
"The package is available to existing and prospective MG suppliers across all of Murray Goulburn supply regions," he said.
"As a result, the investment for MG will be self-funding," he said.
The package built upon MG's existing supplier-shareholder services, including working capital loans and milk payment advances, Mr Poole said.