About 300 dairy farmer shareholders and unitholders filed into the Melbourne Convention Centre last Friday to hear an emotional Murray Goulburn chairman Philip Tracy explain one of the worst years in the co-operative’s history.
While some tempers flared, most farmers reaffirmed their loyalty to the co-operative, despite being lumped with a $183 million clawback debt and witnessing many other suppliers abandon the co-operative in the wake of poor farmgate prices.
A tearful Mr Tracy told the meeting he was “deeply sorry” and was “heartened by the positiveness in the room, because it was critical suppliers, shareholders and unitholders stuck together”.
Many of those who lined up at the microphones expressed their frustration and confusion at the roller-coaster journey of emotions they had gone through as MG’s board first cut then raised the forecast milk price, within a matter of days. Then it suspended a 26c a kilogram milk solids clawback payment until July 1 next year, followed by the extension of repayment of debt until 2022.
Supplier and politician Roma Britnell declared Murray Goulburn’s reputation was “in the toilet”. Unitholder Carlo Caiani said if he was a farmer he would be “spewing today”, which got a few laughs and replies from dairy farmers in the crowd that “we are”.
Other suppliers, such as Heathmere Murray Goulburn supplier Peter Taylor, said the board had a huge task ahead of it rebuilding trust with farmers.
That lack of trust, the clawback and poor farmgate prices have already bled Murray Goulburn of 375 million litres of supply — about 11 per cent of total supply.
Mr Tracy said one of the first steps in rebuilding supplier trust and loyalty was to offer two 13c/kg/MS step-ups for those who stayed with Murray Goulburn, plus a cap on the amount suppliers would have to repay on the $183 million clawback debt.
Then it was time to elect directors, with the debate focused on Murray Goulburn’s leadership and support for Mr Tracy, which ultimately spilt into the board meeting that followed the AGM. The new board re-elected Mr Tracy, who said he would remain in the role for only a few months to ensure a smooth transition to a new chair.
Newly elected directors to the Murray Goulburn board included Craig Dwyer, Lisa Dwyer and Harper Kilpatrick in Western Victoria, and Kelvin Jackson in Gippsland.
The position of deputy chair was left vacant.
Source: WeeklyTimes
Link: http://www.weeklytimesnow.com.au/agribusiness/dairy/murray-goulburn-dairy-giants-agm-full-of-mixed-emotions/news-story/ffbf800a4478b6fee5a823de57ec021b