milk price

 

How did Murray Goulburn, once Australia’s biggest milk processor and a successful dairy cooperative since 1950, end up sold to its international competitor, Canadian dairy giant Saputo? In the first of this multi-part series, Elena Garcia provides some answers.

After nearly 70 years as a cooperative that was wholly owned by the farmers who supply the milk, on April 5 Victorian dairy farmers voted to sell Murray Goulburn, once Australia’s biggest dairy processing business, to foreign owners.

The dairy industry is in crisis and dairy sustainability is under attack.

In Victoria — where most dairy farms are — Australia’s largest processor, farmer-owned co-operative Murray Goulburn, allowed outside investors to become members, to get the funds to build more infrastructure to take advantage of export opportunities. Murray Goulburn prioritised paying returns to those investors out of their 2016 $44 million annual profit, rather than to the farmers who supply the product.

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