Murray Goulburn chairman Phil Tracy has apologised to suppliers at the company's annual general meeting in Melbourne, and said he intended to resign once a new managing director and the new board members had settled into their roles.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
“The past six months have been incredibly challenging, and as a chair that weighs heavily on me,” Mr Tracy said holding back tears.
“But I’m quite heartened by what we’ve heard today; it is critically important the co-operative stays together. It’s important that the suppliers, shareholders and unit-holders work as one.”
Special director Peter Hawkins has also advised his intention to retire from the board – meaning the company is now looking for a replacement for him as well as continuing its search for another new special director.
Mr Tracy also flagged a review of the current payment system and the board structure.
Murray Goulburn suppliers voiced their hopes things were looking up for Australia's largest dairy foods company, after the co-operative’s annual general meeting.
In April, Murray Goulburn announced a step-down from the $5.60 per kilogram milk solids farmgate milk price to between $4.75 to $5.
They also launched a Milk Supply Support Package, which initally ould clawback the money farmers had been “overpaid” until that point of the financial year as deductions from future milk payments over the next three financial years.
However, on Thursday, the day before the meeting, Murray Goulburn announced changes to the Milk Supply Support Package, including suspending its recoupment and extending the recoupment period from three years to six years.
Corryong dairy farmer Gordon Nicholas and Numurkah’s Jim Dealy thought the co-operative was “over the worst”.
“Suppliers have got to stick with Murray Goulburn for the next six to eight months to give the company a chance – we can’t afford to lose any more milk supply,” Mr Dealy said.
In questions to the board, he said the support package was flawed, with the company absorbing debts of suppliers who left the company but not farmers who stayed.
“I’m trying to make financial decisions based on your decisions, but you keep changing the goal posts,” he said.
