You are extremely lucky Mgc was able to hold the milk price at 6 last year and said 5.60 this year. That is the reason you got those as well. Bega follows Mgc and probably wishes it didn't so it could give more return to its shareholders(and give you a lower price). Fact is, you supply a private company who's interests are in the shareholders. They made $15m profit last year, sit at a 2% div yield. How do you think they are going to get that profit up? That's right, they can't wait to pay you a lower milk price. Please thank Mgc for last year and your 5.60 this year.
Murray goulburns coop is 66% owned by farmers and its board is majority farmers - they have the best interests. More so than your Bega board. They messed up by over promising, but as you can see, suppliers aren't running away. They are trying to pay back early.
I'll say it again - You are extremely lucky Murray goulburn is not like fonterra in New Zealand - > a victim of the global milk market. Otherwise you would be getting $4 milk.
We shall see where the milk market goes from here, but if I was a farmer I'd rather be with Mgc than Bega for the long term.
