Gor­bro sale hits $25Ɉ000

Shepparton News - Country News - - FRONT PAGE - By Rod­ney Woods

The ex­tra 40¢/kg of milk solids that Mur­ray Goul­burn sup­pli­ers will re­ceive if the com­pany is sold to Sa­puto Aus­tralia will lead to about $70 000 in the pock­ets of farm­ers.

That is ac­cord­ing to anal­y­sis from Ru­ral Bank, which the com­pany’s gen­eral man­ager of agri-business An­drew Smith said was ‘‘quite a ben­e­fit’’.

‘‘From our anal­y­sis, the ex­tra 40¢ a kilo of milk solids will equate to roughly $70 000, around 7.7 per cent in ex­tra in­come for the av­er­age dairy farm in Vic­to­ria,’’ Mr Smith told ABC’s Coun­try Hour last week.

‘‘So it’s quite a ben­e­fit when you look at what that might do to their re­turn on as­sets.’’

Mur­ray Goul­burn sup­pli­ers have been given a step-up of 40¢/kg milk solids from Novem­ber 1.

If the Sa­puto trans­ac­tion goes ahead, the step-up will be paid ret­ro­spec­tively for milk sup­plied from July to Oc­to­ber, tak­ing the price to about $5.60/kg.

An ex­tra 40¢/kg has been promised in Au­gust next year as a loy­alty pay­ment if the sale goes ahead.

In other news, north­ern Vic­to­rian dairy con­sul­tant Cameron Smith has left Mur­ray Goul­burn Co-op­er­a­tive and re­turned to his business.

Mur­ray Goul­burn chief ex­ec­u­tive of­fi­cer Ari Mervis said Mr Smith had been an im­por­tant part of the Mur­ray Goul­burn team for the past 15 years through his con­sul­tancy work with sup­pli­ers on-farm.

‘‘As a mem­ber of our ex­ec­u­tive lead­er­ship team, Cameron pro­vided ex­cel­lent in­sight and coun­sel and was a great ad­vo­cate for our sup­pli­ers,’’ Mr Mervis said.

Mr Smith joined the lead­er­ship team late last year and his last day was on Novem­ber 3.

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