I am aware of how the listing of the units got over the line and was vocal about back then. It was a stacked result due to those not interested not voting against it and those for it actively supporting and voting for it. someone made comment somewhere that if every vote was cast and counted then perhaps it would not have got over the line, as it was many did not vote and as a result the supporters got their way.
Worse still Gary and the Board (also dairy farmers except for Peter Hawkins back then, Michael Ihlein was new) held the milk price high so to convince farmers it was all a good thing. The farmers got schmoozed and conned by MG and the Board was complicit and comfortable in the payouts at the time.
MG as a processor needs to be disconnected from its suppliers outside of the provision of product for a fee, same as most others other than Fonterra and trying to replicate the Fonterra model is fraught with danger.
It would be interesting to see a comparison of other countries and their payout to farmers for kg/ms by year and whether they also had claw-back arrangements or industry or market protection arrangements. Try UK, Canada, Holland, US and ignore NZ for now.
As a co-op MG has an impressive track record, as a transition to something different it has and is a disaster and they now expect farmers to pay for it. Some say they deserve it, others don't and I fall in the latter category.
MGC Price at posting:
97.5¢ Sentiment: None Disclosure: Not Held
