Best or worst? Either way change is on its way...

No matter which way people see the current state of affairs with MGC, new changes are on their way for the organisation and those changes started as far back as deregulation of the australian milk industry in 1999 and there have stormy times for some players along the way.

For MGC the issues at hand presents them with a large opportunity or MGC can see it as a threat and seek to quash any uprising or pressure for change and return to the old days. Whether we like it or not Gary Helou foisted change on MG-Devondale with the board support but sadly the underlying initiatives failed to deliver or protect and one might suggest the risk management framework and risk appetite set by the Board was too far out and has not resulted in a capital exposure that it seeks to get others to pay for. Not good. No matter how much they might be nice guys and or work hard and or are as concerned as others the fact remains they failed in their duties to their stakeholders, shareholders and suppliers and for that there is a cost that must be borne by them.

For MGC to have a future requires a fresh set of eyes over it and a major replanning of what it has, what it wants to be, when it wants to get there and how to do it and fund it. I cant see the current Board doing this of their own volition hence a board refresh, constitution change and a new plan needs to be crafted, approved and initiated.

Fonterra went through the same in New Zealand many years ago, albeit with major government support and legislative backing, and is better off as a result and MGC will be too, albeit with very little government appetite for any engagement or intervention, so they will need to drive it but to do this they need their supplier/voters to support it.

Tough choices but inevitable ones in my view for MGC-Devondale. In the meantime the share price will reflect sentiment rather than any market, fundamental or instrinsic value.