Disgruntled farmers, particularly in northern New South Wales have queried the company’s controversial move in light of its forecast $42 million profit for the financial year just ended.
Both the ACCC and the Australian Securities and Investment Commission are investigating the embattled dairy cooperative.
ACCC Agriculture Commissioner Mick Keogh said there will be some answers «forthcoming» over just how transparent Murray Goulburn’s dealings have been.
He said the ACCC will focus on the events leading up to the decision which triggered the investigation, and doubted the profit subsequently announced would figure in the inquiry.
«I think that is an issue which concerns the listed entity that Murray Goulburn created and the clauses and arrangements it put in place in relation to the flow of revenue and flow of profit to that listed part of that organisation.
«I know that ASIC is having a look at that to decide if the arrangement is legal and whether the arrangement is suitable to their requirements.
«But it is not an area that the ACCC would look at.»
He also ruled out any scrutiny on the latest round of pricing by Murray Goulburn compared to other processors.
Prices being paid by the processor came in lower than that being offered by its competitors to their suppliers.
«The ACCC is not a price setter, that’s up to individual companies to base on their marketing skills their position in the market and what opportunities they have available.
«Companies are always free to set their own prices, they need to do it in a way that is transparent and complies with all the laws but we don’t have a role in setting prices in the dairy industry.»
Source: ABC
Link: http://www.abc.net.au/news/2016-07-06/accc-milk-inquiry-murray-goulburn/7571112
