Unitholder class action

11 months later and my investment in MGC is (after dividends and imp crs) still around even.

My greatest concern was the fact that the unitholder class action was limited to unitholders who held before and up to the Apr16 downgrade. However I note in the most recent suppliers meeting notes, the following:

" Regarding the class action, the lead plaintiff has also made an application to expand the claim to include unitholders who purchased units on or after 27 April 2016 and who continue to hold any of those units. The Court has not yet determined this application. A third Directions Hearing was held on 9 February 2017 and the next stage of the proceeding has been scheduled to be heard on 10-11 May 2017."

All due to sympathy to farmers but the unitholders investment fell because farmers were paid too much. Post downgrade unitholders have seen there investment degraded by farmers choosing to leave and further FMP advances (Oct16). Farmers may own and control MG but they and directors have a fiduciary duty to minority shareholders, ie MGC.

This catastrophe was caused by lower GDT prices which had already bottomed at the time of the IPO.

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

https://www.globaldairytrade.info/en/product-results/ (scroll down)

* After MSSP write off. Does not include dividends and franking credits on supplier shares.



What did EU farmers get paid in 2016 as a % of cost of production?

How much did Fonterra pay its NZ farmers in 2016 as a % of cost of production?

If MG didn't set market FMP, what would ALL Aussie farmers have received in 2016?


Australian domestic dairy food sales have been impacted by a flood of imports in recent years and most notably from Fonterra NZ.

At least, MG paid the MSSP (which I'm sure they knew at inception they were not going to recover). What did Fonterra Aust do?

At least they didn't lie to Australian farmers like Fonterra did.

http://www.weeklytimesnow.com.au/ag...not-have-to-follow-murray-goulburn/news-story


Granted, MG management made mistakes (and those managers have paid the price) but MG has always championed the Australian dairy farmer and will continue to do so.

The bad guys in this shemozzle were Helou, Hingle and Fonterra Aust. Two out of three gone.