MG aims to op­ti­mise ef­fi­cien­cies

Shepparton News - Country News - - NEWS -

Mur­ray Goul­burn Co-op­er­a­tive says it is closely mon­i­tor­ing its milk sup­ply lev­els and try­ing to op­ti­mise fac­tory ef­fi­cien­cies in the face of an ex­o­dus of milk sup­pli­ers.

The com­pany has re­ported a 21 per cent re­duc­tion in milk in­take last fi­nan­cial year, com­pared to 2016.

‘‘We haven’t made any de­ci­sions, or come to any con­clu­sions, regarding any of our fac­to­ries,’’ the com­pany said in a pre­pared state­ment.

‘‘We do not intend to moth­ball as­sets for the sake of it and will be look­ing at ev­ery­thing on a com­mer­cial ba­sis.’’

Mur­ray Goul­burn has al­ready de­cided to close three fac­to­ries at Rochester, Kiewa and in Tas­ma­nia.

‘‘In ad­di­tion to the in­tended clo­sure of three pro­cess­ing sites, we have a business im­prove­ment pro­gram un­der way to op­ti­mise ef­fi­ciency across MG’s cost base rel­a­tive to milk in­take,’’ the com­pany said.

‘‘Despite the loss of milk, MG re­mains one of Aus­tralia’s largest dairy pro­ces­sors and has a lead­ing dairy foods business with good mar­ket share in key dairy cat­e­gories both do­mes­ti­cally and in a num­ber of in­ter­na­tional mar­kets.

‘‘Scale is not an end in it­self — there are nu­mer­ous small pro­ces­sors which are very prof­itable. We are not fo­cused on the size of MG, but our ef­fi­ciency and vi­a­bil­ity.

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

‘‘We are work­ing with our com­mer­cial part­ners to min­imise the im­pact of lower milk in­take.

‘‘MG will dis­con­tinue a num­ber of low re­turn­ing prod­uct lines as a re­sult of the in­tended staged clo­sure of three pro­cess­ing sites.

‘‘The com­mer­cial re­view we are cur­rently pro­gress­ing (as part of the strate­gic re­view) is look­ing at milk al­lo­ca­tion in in­di­vid­ual prod­uct lines and sales chan­nels, to en­sure that suf­fi­cient re­turns are be­ing made.’’

Mur­ray Goul­burn is­sued the state­ment fol­low­ing sup­plier meet­ings at Kiewa, Co­bram, Hey­wood, Koroit, Cob­den, Maf­fra, Leon­gatha, Co­huna and Rochester.

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