This move follows the announcement in October that MG plans to sell its assets to Saputo, the owner of Warrnambool Cheese and Butter, and dissolve MG, Australia’s largest dairy co-operative.

Mr Purcell said he understood Saputo was not interested in buying MG’s trading stores. 

However a MG spokesperson said Saputo had confirmed it would continue to operate the stores if it took over MG.

The MG spokesperson said all MG’s operating assets were included in the proposed sale to Saputo, unless MG has sold MG Trading prior to completion, which it was entitled to do.

Mr Purcell said the plan for a community co-op to buy the trading store had been raised by a Koroit resident who wanted to keep jobs and services in Koroit, 

"This is a proactive move to support a community that has endured dozens of job losses through MG in recent times.

"Not only will this have the obvious economic and social benefits to the Koroit community, but under the cooperative model profits would also be returned to the community," Mr Purcell said.

He has met with state agriculture Minister Jaala Pulford about the proposal and is confident of securing funding for a feasibility study and the purchase of the store.

"We need to keep this alive, not just for the agriculture community, but for the Koroit community as a whole," he said.

Mr Purcell said he expected the proposed co-op would be similar to the Terang Co-op.  

MG has 25 trading stores, including Simpson and Heywood,  and six fertiliser depots throughout the south-west.