The dairy giant will face a hostile reception from farmer suppliers at the Melbourne Convention and Exhibition Centre from 11am.

In an attempt to calm a raging sea of discontent, Murray Goulburn on Thursday announced two Southern Milk Region price step-ups as well as extending its Milk Supply Support Package to 2022.

We wait to see if there are more rabbits to be pulled from the hat.

The step-ups, which equate to a full year forecast farmgate price of $4.95 per kilogram milk solids, will be welcome.

Confirming the clawback program is to stay, albeit the time extension effectively cuts by half the annual repayment, will be less popular. The Milk Supply Support Package was intended to support suppliers’ cash flow and protect its milk supply in the long term.

But the subsequent lower milk price saw milk receivals slump – with the company forecasting last week a likely 20 per cent drop in supply and a hit to its profit.

The milk intake slide was attributed to a wave of farmer retirements and suppliers leaving Murray Goulburn.

If Murray Goulburn is to seriously repair its reputation it should permanently shelve the Supply Support Package.

But Australia’s largest milk processor is adamant that won’t happen.

It says doing this is not in the co-op’s long-term interests as it would not contribute to a competitive farmgate milk price, and add to Murray Goulburn’s debt. 

It has been a bumpy ride for Murray Goulburn since its retrospective cut to farmgate milk prices in April.

The Australian Competition and Consumer Commission and the Australian Securities and Investment Commission are both investigating Murray Goulburn.

On Wednesday the ACCC told a Senate inquiry into the dairy industry it expected to deliver a finding by the end of the year on whether Murray Goulburn was guilty of unconscionable conduct. The ACCC is also set to launch a broader investigation into the dairy industry in early November.

The Senate inquiry also heard on Wednesday that if supermarkets raised the price of $1 a litre milk to $1.50 it would all but end the dairy crisis.

It is time for the big two supermarkets to put suppliers before shareholders.