MGC 0.00% 43.0¢ mg unit trust

Market penetration, page-45

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    I dropped in at a popular but small supermarket here today. I live in a country town down from one of the large cities here in SE Asia but 6 hours from the big city. Such is the nature of the place that I live on a farm but 5 mins from the city centre and 10 mins from the beach.

    I couldn't believe my eyes when I saw stacks of Devondale UHT there for sale. As I've mentioned before, it's been a big seller at the biggest and second biggest supermarkets here.

    Australian farmers need to wake up to themselves. Do you want to participate in the coming super profits from China and greater Asia or do you want to be an employee for some foreign dairy processor and accept the scraps thrown your way?

    Do all the calcs necessary re FMP but which Dairy Processor is going to give you exposure to the coming boom? It may seem laughable now but doesn't MG offer supplier shares at a discount as part of their incentive package?
    I recall they issued $1.00 shares when net tangible assets valued them well over $2.50 and the IPO at $2.10. Do these foreign processors offer similar incentives or are they motivated to secure Australian farmers with generous upfront payments to relegate them to employee status and send the profits overseas?


    In hindsight, what has MG done wrong but to call a spade a club (the MSSP/2016FMP income) for just over 12 months?

    The fault lies with Hellou being seduced by Chinese customer demands for WMP product. Russian sanctions, EU dumping and subsidised USA overproduction crucified him. You'll note Fonterra has still been selling butter to Russia allthewhile. The Australian Government fiddled like Nero!

    Fonterra has been spending considerably on developing Chinese markets. Devondale should piggyback them. What's happening Mark Clark?

    I hope that farmer's eventually realise that through the past few years MG has been the good blokes in the global dairy downturn. They were never going to recover the MSSP, it was a measure to pay the farmers the promised FMP, while preventing successful unitholders legal action. For this reason their intentions were incommunicable.

    Fonterra were the unscrupulous, as evidenced here:
    http://www.ruralnewsgroup.co.nz/item/11944-fonterra-facing-aussie-backlash

    If MG didn't force all processors to pay a high FMP during the global dairy downturn, then how many more farmers would've suffered?
    2014 FMP: 6.81 GDT Price Index(avge): 1300
    2015 FMP: 6.02 GDT Price Index(avge): 800
    2016 FMP: 5.47* GDT Price Index(avge): 650
    2017 FMP: 4.95 GDT Price Index(avge): 1000
    2018 FMP: 5.50** GDT Price Index(avge): ?
    https://www.globaldairytrade.info/en/product-results/ (scroll down)
    * After MSSP write off. Does not include dividends and franking credits on supplier shares.
    ** Current declared 2018 maximum dependant on GDT, farmers loyalty and dairy product sales success.
 
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