Moyne Shire mayor Jim Doukas has called for Murray Goulburn (MG) suppliers to support the dairy giant while it tries to recover from a $370.8 million loss.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The co-operative revealed a milk intake loss of 22 per cent on Tuesday and chief executive officer Ari Mervis spoke about the decision to axe the Koroit factory expansion.
“We announced postponing and then cancelling our other major project – this was done largely on the back of the fact UHT prices into Asia were at an uncompetitive level for us,” Mr Mervis said.
Cr Doukas said it didn't look good. “I’m hoping and praying that they survive and the community gets behind them,” he said.
“It’s hard for dairy farmers to supply MG if they can get more money somewhere else but that’s free enterprise.”
Cr Doukas said the news painted a bleak picture for suppliers who had to wait until the AGM, calling on the government to step in and provide funding similar to the lifeline offered to Alcoa.
“If it gets really bad and they get to the stage where they might fold, the government should do the right thing, being a co-operative, and step in and save MG,” he said. But Federal MP Dan Tehan said it would be unlikely because while Alcoa’s situation was due to external forces, MG’s was “inside the company’s control.”
He encouraged suppliers to have a “strong say” in the future direction at the AGM.
Cr Colin Ryan said he hoped MG could pull through and continue operating at its current capacity. If a takeover bid was to happen he wants the service and workforce maintained.
It was also revealed the company’s two top executives were paid more than $2.8 million in the financial year.