Murray Goulburn Co-operative

Murray Goulburn Co-operative Co. Limited
Agricultural cooperative
Industry Manufacturing
Retail
Founded 1950 (1950)
Headquarters Southbank, Melbourne, Victoria, Australia
Products Milk
Butter
Cheese
Revenue + A$ 2.4 billion (2012/13)
Number of employees
 2,000 approx
Website mgc.com.au

Murray Goulburn Co-operative Co. Limited (Devondale Murray Goulburn) is an agricultural cooperative formed in 1950 from 14 dairy farms that has grown to become the largest processor of milk in Australia and the nation’s largest exporter of processed food .

Turmoil engulfed the processor in 2016 as the milk price fell below production costs, prompting calls for the board to be sacked or the co-operative to be sold.[1]

Profile

With nine manufacturing plants located throughout Victoria and Tasmania, Murray Goulburn processes over 35% of the nation’s milk supply (3.3 billion litres) into products which are sold on both domestic and export markets. Devondale Murray Goulburn's international business accounts for approximately 9% of world dairy trade and they trade in over 100 countries.

It has over 2500 suppliers (mainly milk farmers) who are also the shareholders of the company. Devondale Murray Goulburn also supports over 2000 employees with an annual turnover of A$2.4 billion.

Devondale Murray Goulburn is the largest container user in the Port of Melbourne exporting in excess of 375,000 MT or 23,500 containers in a financial year.

All Devondale Murray Goulburn's processing plants are accredited to ISO 9001:2000 manufacturing facilities and are certified to the NSF HACCP – 9000 standard for HACCP and GMP. Compliance with finished products specifications is independently validated by Dairy Technical Services, located in Melbourne, Victoria.

Devondale Murray Goulburn made a bid to take over Warrnambool Cheese and Butter Factory Company Holdings in early 2010 and again in October 2013.[2][3]

In July 2016 Murray Goulburn were dumped as a supplier by Woolworths costing the co-operative approximately A$108 million.[4]

Business Units and Brands

Controversy

The managing director, Gary Helou, left the company in early 2016 after concerns were raised internally about large losses being made followed by a profit downgrade and subsequent farmgate milk price slash, just after the co-operative partially listed on the stock exchange.[5] The company then slashed the price dairy farmers had been expecting for their milk, and instituted a A$200 million clawback on milk that had already been acquired where the 2,500 farmers would have to pay back the difference. This resulted in farmers being paid less that what it cost to produce milk for the company. The company's behaviour was documented in an expose by the Four Corners program in August 2016.[6]

References

  1. ↑ Simone Smith (15 August 2016). "Crisis grows for dairy giant Murray Goulburn accused of 'deeply wounding' industry". Weekly Times. News Corporation. Retrieved 15 August 2016.
  2. ↑ Murray Goulburn wants Warrnambool Cheese. The Sydney Morning Herald. 29 Jan. 2010.
  3. ↑ "The Standard" 18 Oct. 2013
  4. ↑ Clint Jasper and Nikolai Beilharz (28 July 2016). "Murray Goulburn loses out as Woolworths hands private label dairy contracts to rival processors". Australian Broadcasting Corporation. Retrieved 15 August 2016.
  5. ↑ Simone Smith (15 August 2016). "Former Murray Goulburn managing director Gary Helou makes first public comments since shock exit". Weekly Times. News Corporation. Retrieved 15 August 2016.
  6. ↑ Debbie Whitmont (16 August 2016). "Four Corners: Dairy farmers forced to sell up in face of plunging milk prices". Four Corners. Australian Broadcasting Corporation. Retrieved 15 August 2016.
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