Do you think farmers have no debt ? Do you think 50% of milk price is profit to farmers, it is probably closer to 5%. At least the farmers provide a commodity that MGC can use to trade out of their hole . They should be a co-op or a public listed company this hybrid model is not working. We need a strong MGC for the dairy industry, paying dividends when you can't really afford to ain't good business, put the money towards plant to value add would make better sense to me. I would think it very prudent to nurture your resource. I supply BGA we will get a pay cut but we won't have to pay back money already paid to us. I would love to see you receive your dividend and 10 months get a letter saying your $5.60 dividend is now $4.75 you have to pay the rest back. Then have someone say your over reacting. Stick to what you know because you obviously have not got a clue about dairy farming.
Don't get me wrong I hope to see a strong MGC but they have a bit of bleeding to do yet before dairy commodity pricing improves Globally, let's hope they can hold suppliers in the mean time.
MGC Price at posting:
$1.01 Sentiment: Hold Disclosure: Not Held
