Member for South West Coast Roma Britnell has welcomed Murray Goulburn’s announcement of two price step-ups and a suspension of the Milk Supply Support Package until 2022.
Murray Goulburn this morning announced two step ups, one backdated to July 1 and will be in farmers pockets on November 15 and a second to be paid on July 1 2017 which applies to the whole 2016/17 Financial Year.
The step ups take Murray Goulburn’s full year forecast to $4.95 per kilogram.
The co-op also announced a cap on supplier payments to the Milk Supply support Program, meaning monies farmers owe will not increase if others supplier leave the co-operative which would leave a smaller pool of people to share any liability.
Murray Goulburn also extended the payback period from three to five years and instead of being funded from milk price it will be funded from costs saved in the company
Mrs Britnell said it was a welcome announcement that shows a considered approach from the processer.
“This shows Murray Goulburn has listened to farmers and has been through a sensible and considered process to come to this point,” Mrs Britnell said.
“The announcements will put as much money as possible in farmer’s pockets as soon as possible which is important as we deal with the global price slump.”
Mrs Britnell said the process Murray Goulburn has in place means any deviation from ordinary procedures, which these announcements are, require all board members, both independent board members and analysis by another independent expert, who is in this instance Grant Samuels, to agree
“The report prepared by Grant Samuels took six to eight weeks to prepare and is why this announcement wasn’t made earlier ,” she said.