And it confirmed it is still bleeding suppliers, with forecasts showing it will be down to just two billion litres this year — a fall of 21.8 per cent on the previous year and a country mile from its heyday of 3.5 billion litres before the arrival of Fonterra in the Australian market.
New Zealand-owned Fonterra is also expecting to process two billion litres, an increase of 500 million litres from the previous season. MG confirmed it would maintain its opening milk price of $5.20 kg of milk solids, while any price above remained subject to favourable exchange rates, commodity prices and perhaps more importantly retaining appropriate levels of milk intake.
Chief executive Ari Mervis said the past season tested the strength and resolve of the company and its suppliers.
‘‘A new management team is now in place and a comprehensive strategic review covering all aspects of MG’s strategy and corporate structure is accelerating.
‘The coming months will be pivotal for the future of the business as the board and management finalise substantial business improvement programs and third parties are given an opportunity to submit formal proposals to the company.’’
He went on to say milk intake remains firmly in the hands of its suppliers, and with their support he looks forward to a constructive year.
A Fonterra spokesman said the increase in milk supply has come from new supply and growth from existing suppliers.
Source: RIVERINE HERALD
Link: http://www.riverineherald.com.au/2017/08/23/9609/mg-blows-370m-as-its-milk-disaster-deepens