Worse Is Yet To Come?, page-439

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Murray Goulburn's cap-in-hand meeting with Malcolm Turnbull
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Barnaby Joyce is under pressure to be seen to be doing something to help Murray Goulburn's dairy farmers.

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by Joe Aston
Prime Minister Malcolm Turnbull and Deputy PM Barnaby Joyce will sit down with the entire board of faltering dairy processor Murray Goulburn in Canberra on Tuesday August 16.
The meeting with chairman Phil "Stability" Tracy and his fellow directors, plus interim chief executive David Mallinson, fulfils a commitment the PM made on the campaign trail on June 29, right after MG announced its lowball opening farmgate price for 2016/17 of $4.31.
There is little doubt the company, majority owned by farmers but 38 per cent by shareholders of its ASX-listed units, will request a Commonwealth handout, drawing a link between its financial calamity and the West's trade embargo on exports to Russia – a diplomatic, not commercial, distortion – stifling global demand and thus the global milk powder price.
MG's reasoning there is utterly specious, given its domestic competitors Lion, Burra, Parmalat, Bega, Saputo and Fonterra have all operated with a mind to international market realities without gravely obliterating their own capitalisations or imperilling their survivals as going concerns.

Even so, the Nats cannot afford to do nothing, and MG's directors know this. Craven bastards. A formal proposal for some kind of Marxist subsidy (from MG's part-time suits on six figures) is expected on Joyce's desk any day now. What a crock.


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