MG reviewing pricing policies

06 Mar, 2017 08:53 AM
Comments
0
 
Ari Mervis is expected to meet with MG suppliers in coming weeks.
We are looking at all different options as to how best set a transparent and predictable price ...
Ari Mervis is expected to meet with MG suppliers in coming weeks.

Murray Goulburn was reviewing its pricing policies after a disastrous 12 months for the dairy giant, says new general manager Ari Mervis.

The co-op has taken a hammering, posting a $31.9 million loss in the first half of the financial year and a big drop in its milk intakes.

"We are looking at all different options as to how best set a transparent and predictable price for our supplier base, which is obviously what they are entitled to and what they expect, and what they need," Mr Mervis told the Border Mail.

"It is very much a work in progress."

Mr Mervis is expected to meet with MG suppliers, including a trip to the Tangambalanga factory in the North East, in coming weeks.

Murray Goulburn is under investigations by the Australian Securities Investments Commission over potential breaches of the Corporations Act as well as the Australian Competition and Consumer Commission over possible breaches of the Competition and Consumer Act.

ACCC chairman Rod Sims said after a public forum at Warrnambool, Vic, last week Murray Goulburn's price cuts and payment clawbacks last May had "blown up" the milk cooperative system.

He said the dairy processors' actions had imposed "all the risk" on their farmer suppliers.

"That is not an even system," Mr Sims said.

Mr Sims said the ACCC would also look at whether dairyfarmers needed a more transparent milk pricing system that would allow them to easily compare the prices being offered by processors.

Dairyfarmers have told the ACCC the complex payment structure by processors, and the little time they had to compare prices before the next milk season started, left them at a disadvantage.

Border Mail

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 
DATA driven quality performance indicators are helping Hans and Kerrin van Wees and Jakob Malmo to achieve high production from a pasture-based dairy system in Gippsland, Victoria. 
03 Apr 18 DATA driven quality performance indicators are helping Hans and Kerrin van Wees and Jakob Malmo to achieve high...
Seed is the most important input into any crop or pasture that is sown.03 Apr 18 Seed is the most important input into any crop or pasture that is sown.
light grey arrow
Amen! From start to finish - especially the "deafening silence". The number of times I've heard
light grey arrow
Miracle Whip changed to Mayo...I know it was bought out by Bega. It is no longer on the shelves.
light grey arrow
Received your email re Crozier Street, V/Harbor. As one of many residents in Rapid Drive,
Like a lot of dairyfarmers, Steven and Leanne Wieland's Boonah, Qld, business has grown in the past decade.13 Feb 18 Like a lot of dairyfarmers, Steven and Leanne Wieland's Boonah, Qld, business has grown in the past decade.
A Western Australian dairyfarmer says his simple effluent management system is the most cost-effective and labour efficient for his farm.
06 Feb 18 A Western Australian dairyfarmer says his simple effluent management system is the most cost-effective and labour...
Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition opportunities.25 Sep 16 Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition...
Monopoly market may confront cropping sector under mega-merger proposal.22 Sep 16 Monopoly market may confront cropping sector under mega-merger proposal.