MGC (ASX) Worse Is Yet To Come?

Originally posted by Amused observer ↑

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We understand that Dairy Australia, the industry body funded by a levy on farmers and devoted to helping them "achieve a profitable, sustainable dairy industry" has ceded to howls of protest emanating from Victoria's rolling hills at its latest piece of research (its inputs and conclusions as logical as a kindergarten finger painting), the June 2016 Situation and Outlook Report.

Remember that Coles managing director John Durkan (AKA "the Reptile") has used its finding that the supermarket giant's chin-leading $1 milk has helped farmers because it's encouraged more milk to be sold – which is like arguing that 9/11 was good for firefighters. Wesfarmers chief executive Richard Goyder must be marvelling at the logic.

In response to its pummelling by farmer groups, Dairy Australia is preparing to release an addendum clarifying its position on private label milk (the only dairy item in punters' trolleys to have gone backwards in real price since Miley Cyrus was last bottle fed) but is wrestling with how to reach findings that'll appease all of its stakeholders – including Murray Goulburn which, after the Reptile dragged in Phil "Stability" Tracy for a quiet chat, pushed for the original analysis in the first place.
Meanwhile, MG's competitors have received cease and desist letters in recent days warning them that David Mallinson and Fiona Smith will take "very seriously" any breach of fixed-term contracts committed by MG farmers jumping ship to other processors. You'd only send that letter if your milk supply was in free fall.
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Murray Goulburn's Philip Tracy: the co-op is now issuing cease-and-desist letters to embattled farmers. Leanne Pickett
Don't you just love that? MG devastates its supplier-shareholders on price then use bullying tactics to ensure they can't go elsewhere for fair value. And Tracy is still there, having overseen the whole fiasco. Haven't his fellow directors each got a pair of eyes and ears?!

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AO,
I know personally suppliers of MG who have just recently been taken on by other processors, and there are many more looking at options and offers from others at this present time. The Dairy Farming community are not as laid back as MG seem to think, they are hands on workers and business people as well and to try and stand over them is the worst thing MG could have done There is a large uprising in the dairying community and they will all band together.

IMO DYOR