The Murray Goulburn brand — the name of the 66-year-old milk processing co-operative — has been the subject of much backlash since it cut the farmgate milk price in April and introduced its controversial milk supply support package or clawback.
Murray Goulburn has lost about 11 per cent of its total supply — 375 million litres — to competitors as farmers chase a higher farmgate milk price and try to shrug off the burden on the $183 million clawback. It is also the subject of investigations by the Australian Securities and Investments Commission and the Australian Competition and Consumer Commission.
Devondale, on the other hand, is the co-operative’s dominant retail brand, including cheese, butter, milk and cream.
Murray Goulburn interim chief executive David Mallinson told the AGM last week that the Murray Goulburn branded business recorded a value growth of “nearly 10 per cent” in the past 12 months to mid-September, according to national supermarket data. This compares with 1.9 per cent value growth in the dairy category.
HAVE YOUR SAY: Should the Devondale and MG brands be split? Comment below
Following the AGM Mr Mallinson clarified the brand review. “We are aware that we need to rebuild the Murray Goulburn brand with suppliers given the events over recent months,” he said. “The outcomes of this review have not been completed and further stakeholder engagement is required before any decision can be made. We understand that all elements of our branding heritage are important and will continue to play a key role in positioning MG.”
Woolsthorpe supplier and MP Roma Britnell said Murray Goulburn was a “proud farmer-controlled business and we should not run away from that”, and suggested instead of considering splitting Devondale and Murray Goulburn, it should invest in better understanding of why the Murray Goulburn brand should be supported.
Gnotuk, near Camperdown, supplier Kerry McGarvie said she would be “deadset against” any separation.
“Everything the Devondale brand represents, I’d like Murray Goulburn to still be linked to it,” she said. “MG suppliers produce Devondale.”
Source: WeeklyTimes
Link: http://www.weeklytimesnow.com.au/agribusiness/dairy/murray-goulburn-coop-flags-review-of-branding/news-story/bbea3bf56781274c743a839089cd2881