Dairy

MG to shed more staff

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October 18, 2017

Murray Goulburn Co-operative is expected to shed up to 60 jobs in its transport division due to the decline in milk supply.

Murray Goulburn Co-operative is expected to shed up to 60 jobs in its transport division due to the decline in milk supply.

The company has been under pressure because of farmers leaving the company and the resulting milk supply cut.

The company has also been telling suppliers it wants to generate the maximum milk price.

Last week Murray Goulburn announced it was reshaping its Inbound Logistics Business.

The targeted jobs in tanker drivers and support staff are at Koroit, Leongatha, Maffra and Rochester.

The company said the phased changes to Inbound Logistics would significantly increase MG’s logistics efficiency relative to milk intake, while ensuring sufficient capacity to manage collections through seasonal peak production.

‘‘We are committed to ensuring that we provide any affected employees with appropriate levels of support and the recognition that they deserve during this period of transition,’’ the company said.

‘‘MG will support employees by providing access to career transition and redeployment services.’’

Meanwhile, a number of large milk processors are interested in making offers to buy Murray Goulburn.

There has been speculation in the past week that Bega Cheese and Canadian company Saputo are taking a strong lead in making offers for the company.

New Zealand based dairy giant Fonterra has also publicly announced its bid.

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