Murray Goulburn ‘forgives’ Milk Supply Support Package repayments
2 May 2017
SIMONE SMITH, The Weekly Times
May 2, 2017 9:22am
MURRAY Goulburn has scrapped its Milk Supply Support Package repayments.
Australia’s largest milk processor today issued a statement to the Australian Securities Exchange about its asset and footprint review conclusions, saying it would “forgive” the MSSP in order to “mitigate the risk of further milk loss”.
MG said it would make a payment to continuing and retired suppliers who made MSSP contributions between July and September last year and to any suppliers who recommence supplying milk to MG by July 31 this year.
It also flagged the closure of manufacturing sites at Rochester and Kiewa in Victoria and Edith Creek in Tasmania.
These closures are expected to affect about 360 employees.
MG said: “Once completed the closures are expected to deliver an annualised financial benefit of $40 million to $50 million.”
It said it anticipated a net financial benefit in the 2017-18 financial year from the closures of about $15 million.
These actions are a result of reduced milk intake across the company and “continuation of efforts to address MG’s cost base, improve efficiencies and ultimately increase earnings and farmgate milk pricing”, the statement said.
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