THE announcements by Murray Goulburn to the Stock Exchange this morning are likely send shockwaves through the industry. They have followed the lead of firms in New Zealand and announced a 10% drop in farm gate milk prices this year. The big cooperative has also cut its forecast profit from $89 million to $42 million.
And heads have rolled. Managing Director Gary Helou is stepping down and the Chief Financial Officer Brad Hingle has resigned.
The United Dairyfarmers of Victoria Vice President, John Versteden, says it’s a big blow for farmers.
“It will be challenging given that seasonal conditions are fairly difficult given the dryness that seems to be right across the southern part of the country at the moment.”