‘We will do more’: MG tells suppliers

MURRAY Goulburn chairman Phil Tracy has told suppliers the company will reduce the financial burden of its Milk Supply Support Package, following its meeting with the Prime Minister yesterday.'”The Prime Minister and Deputy Prime Minister expressed their view that MG should do everything within our power to reduce the financial burden of the MSSP recoupment – something that both the board and management are committed to achieving,”’ the supplier letter said.
Mr Tracy said further details would be released as part the co-operative’s FY16 financial results announcements next Wednesday.
The MG chairman said the meeting, attended by himself as well as Ken Jones, Natalie Akers, Mike Ihlein, Fiona Smith and interim chief David Mallinson was “very constructive and open.”
“I am pleased that the government remains focused on doing everything it can to assist the dairy industry and is firmly supportive of the role that MG plays in the industry as a major co-operative,” Mr Tracy said.
He said the government wanted to understand the background to last season’s farmgate milk price reduction, the circumstances behind the introduction of its Milk Supply Support Package (MSSP) (known colloquially as ‘çlawback payments’) and the potential for a strengthening in the milk price during this season.
Mr Tracy also expressed MG’s support for the Coalition’s proposed Commodity Milk Price Index.
“’MG’s pricing mechanism has worked effectively for many decades and through many industry cycles, but we do believe there is scope to improve the transparency of pricing for Australian dairy farmers,’’ Mr Tracy said.
‘’We support the call for industry wide consultation to ensure that the index is a true indicator of commodity prices and meets the requirements of the Australian dairy industry as a whole.’’
MG will announce its financial results for the 2016 financial year next Wednesday and will host more supplier meetings in September.
Mr Tracy said he and David Mallinson will also attend the dairy industry symposium to be held in Melbourne next Thursday.


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