The dairy sector in Australia got commercially raped way back in...

The dairy sector in Australia got commercially raped way back in 2000. MGC's woes are self made and go back even prior to the poor disclosure by a past MD of related party transactions, his wife. All of this was on record as was the past Senate and other Inquiries into the dairy industry over the past 10 years. So I cannot accept they went in blind, what I might be able to accept is that they did not fully understand the gravity of organisational, behavioural and procedural issues imbedded inside the organisation resulting from being pushed from a comfortable co-operative to a listed vehicle with a new albeit aggressive leader. But then even a seasoned change management or transformation specialist would have seen and recognised the symptoms and there are plenty of damn good ones in Melbourne ready, willing available.

Ari and John may well be high quality operators in a business-as-usual with incremental performance improvement type of organisation but what MGC is having to go through is a completely different league and uses completely different commercial approaches and levers to get through the what they are having to go through. It isn't just crisis management or managing a critical situation it runs a lot deeper and wider and I am sure you are right it is a constant 24/7 focus for Ari and he will be tired, worn out and lonely by the end of it, but guess what? Welcome to that world, MGC is neither alone nor the first.

In regards the salaries, I don't have an issue with those nor do I have an issue with the Board remuneration but you make a good point in regards co-op style nominated farmer representative Directors and that is a legacy of being half co-op and half listed - you are the bastard nobody likes as the loyalties are torn. I am surprised at early payments of performance bonuses to various parties but then it depends on what basis those performance bonuses were firstly granted and secondly measured against - possibly the Board and HR at fault here (noting HR and remuneration planning specialists are often the root cause to driving companies executives to make poor decisions, but another conversation for another day on that one).

The dairy industry in general is fraught with overlapping agendas and conflicts and has some external threats as well and yes it is complex but partly by its own making, partly by the lack of support from Canberra and partly by the international stage and the supply/demand shift that has occurred. Not understanding any of that, or at least being informed of it, is not an excuse either.

Would I want Ari's job? Nope. Would I want John's job? Nope. Would I offer whatever I have to them? Not really, they can read it here and take it or leave it. It is free so most probably not considered of value or relevance. Welcome to posting anonymous comments on a semi-public forum.

Anyway I do feel for MGC shareholders and unitholders and the task ahead is going to have some unpleasant outcomes for either or both of those parties and Ari/John and going to have to be the messenger and that is one helluva task in itself.

Coffee anyone?