Murray Goulburn-Saputo deal: Shareholders urged to buy Koroit plant

Mr Lubitz, a Leongatha dairy farmer and former MG supplier, said shareholders should use the money they would receive under the plan to sell the co-operative’s assets to Canadian dairy giant Saputo Inc to buy the Koroit factory.

He did not rule out unit holders or the “broader dairy farming community” investing in the plant.

He said the factory could be placed under a company structure, which would then be listed on the Australian Securities Exchange.

“The Koroit factory could be bought at book value, with or without the unit holders,” he said.

“It would be floated on the stock exchange, possibly taking about a year to do so. Those farmers could then form a new independent milk supply co-operative that would put their milk into that ASX-listed processor and we start again.”

Mr Lubitz said there had been some discussion in dairy farmer circles as they came to work out “what the world is going to be like after the co-op” goes.

He said some farmers had indicated they would not mind owning a share of the Koroit processing plant as a business investment if the Saputo deal were approved.

“After two, three, four years, if we’ve only got a dollar or 80 cents back of our capital, surely once we’ve bought that and it is a functioning company being similar to Bega, those shares have to be worth $2 or $3,” he said.

“Why can’t something be put to farmers to maximise their ongoing success and give them some control over their industry?

“We would like MG to put out a statement about this proposal to farmers before the ­extraordinary general meeting occurs.

“If it is received positively, we then ask MG to ask the same question of unit holders.”

Murray Goulburn would not comment on the proposal.


Source: The Weekly Times


Any claim arising from the information contained on the eDairy News website shall be submitted to the competence of the ordinary courts of the First Judicial District of the Province of Cordoba (Primera Circunscripción Judicial de la Provincia de Cordoba), Republic of Argentina, in the city of Córdoba, excluding any other jurisdiction (Federal jurisdiction is also excluded).


Criteria in the moderation of comments that eDairy News will take into consideration in all its publications.

  • They will not be considered insults of any kind against anyone,, whether a user, moderator or publisher. Complaints made with the name and surname of the author of the commentary will only be accepted after confirmation by the moderator.
  • Unsubstantiated and gratuitous destructive criticism or expressions of bad taste, whether offensive, racist or xenophobic.
  • SPAM, (Insert links to web pages not related to the subject, provide emails, etc...)
  • Comments that are meaningless with the footnote or the dairy sector.

Related posts