Gorbro sale hits $25Ɉ000
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.