MGC 0.00% 43.0¢ mg unit trust

There is no platform for raw milk trading so it would become a...

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  1. 12,188 Posts.
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    There is no platform for raw milk trading so it would become a nightmare....you have processors, milk brokers and potentially traders all playing with the pricing regime to the detriment of milk production at the farm level. Not good.

    In Victoria and to some degree NSW the processors do milk swaps amongst themselves for all sort of various reasons and can you imagine the games that would appear where one processor seeks to deny another raw milk. And this doesn't even cover the logistics of the physical movement of raw milk either.

    As an investor in one of the processors (e.g. MGC or BGA) one might say "Who cares so long as it is at the lowest cost and my investment makes a profit that I get a dividend from"...without going into detail look at the $1/litre milk debacle and what collateral damage and ripple effect that caused, even though drinking milk in Australia is only about 1/3 of the total milk produced, to get an insight into what may happen.

    Think in terms of the reaction of the last ball at the other end of the balls from the dominant swinging ball in Newtons Cradle.
 
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