Dairy

Please stay: MG

by
September 07, 2017

Chief executive officer Ari Mervis said he hoped the company had the backing of the farmers despite everything that had happened in the past 18 months.

Murray Goulburn hopes it still has the backing of farmers, despite what the company has put its suppliers through since the price clawbacks of last year.

Chief executive officer Ari Mervis said he hoped the company had the backing of the farmers despite everything that had happened in the past 18 months.

‘‘I’d like to think the farmer support is there even though people aren’t happy with our farm gate milk price or the state of affairs,’’ Mr Mervis said.

‘‘It’s been a difficult year and this journey continues.

‘‘Our responsibility as a management and board is to do everything practical and everything possible that we can to give our farmers every reason to stay with us.

‘‘Fundamentally it is their business and we are just charged with managing it on their behalf and we are doing everything within our power to give them every reason to stay.’’

Despite a tough year for the company, Mr Mervis said it was not always the big companies that offered the best prices.

‘‘Scale isn’t an end in itself. You could say: ‘scale is vanity, profit is sanity’.

‘‘In reality there are numerous small processors which are very profitable. It’s not around bragging rights about how much milk you process, it’s about how efficient and viable you are.

‘‘You can be a small, efficient processor and you can deliver very good farm gate milk prices to your suppliers and you can be large and inefficient.’’

Mr Mervis said the next year was critical for the business.

‘‘What suppliers can expect in the coming year is a committed management team that will do everything it can to restore farm gate milk price,’’ he said.

‘‘The FY17 year has tested the strength and resolve of MG and its suppliers.

‘‘The coming months will be pivotal for the future of the business as the board and management finalise substantial business improvement programs.’’

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