New chief executive Ari Mervis would not give an assurance Murray Goulburn’s Tangambalanga factory’s future was assured as a dairy co-op reviews its business.
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Mr Mervis, who has been at the helm for just a fortnight, said it would not be beneficial to pre-empt the review’s outcome.
“While the actual review is underway I’m going in with a very open mind and ... it is premature to draw any conclusions,” he told The Border Mail.
“There’s no proposal that’s been tabled to, or recommendation that’s been tabled to, the board so it is premature.
“In order to have a competitive opening price for the next financial year we need to ensure that we are looking at any cost opportunities.
“So while we haven’t put a timeframe on the review the important point about the review is that we need to systematically, methodically, do it with the appropriate amount of rigour, before we come to any conclusions.”
European dairy company Danone and Murray Goulburn established a joint venture to manufacture products such as yoghurt for the Australian market at Tangambalanga in 2011.
It was expected that arrangement would spare the Kiewa Valley site from possible closure in any restructuring recommendations in the review of Murray Goulburn’s business operations.
The Australian dairy giant on Friday reported a $31.9 million loss for the first half of the financial year, with revenue down by 14.8 per cent to $1.18 billion.
The report also highlighted a 20 per cent drop in its milk intake, to 1.6 billion litres.
About 60 per cent of the lost milk went to rival companies while the remaining 40 per cent was due to seasonal and weather conditions.
Mr Mervis maintained a positive view on the figures.
“In terms of the supplier base, yes Murray Goulburn has lost about 350 suppliers over the course of the last year but we still have 2200 loyal suppliers which are providing us with sufficient milk,” he said.
“We are now still processing approximately a billion litres more than our next biggest competitor.
“We are still, by far, the largest processor in Australia.”
In coming weeks Mr Mervis plans to tour all Murray Goulburn areas, and visit all factories as he begins to rebuild MG’s reputation among suppliers.
He was unable to confirm a date for a Tangambalanga and North East visit.
