Rokeby sharefarmers Kevin and Siahn Lebrocq, and John and Gwen Foord, have been named in the Top 100 farmers in the 2017 Dairy Australia Countdown Milk Quality Awards for the second successive year.
The co-op announced its 2016/17 financial results today.
It confirmed it would maintain its current opening price of $5.20/kg MS, saying on the basis of its current budget, it believes it will be able to fund this milk price out of current year earnings. A final price above this remained under review.
It said any price above $5.20/kg would be subject to various factors “including favourable movements in exchange rates and dairy commodity prices over the balance of the financial year, as well as retaining appropriate levels of milk intake”.
MG received 2.7 billion litres of milk in 2016/17, down 21.8% on the previous year. It estimates this year’s milk intake to be 2b litres. CEO Ari Mervis said milk from MG suppliers yet to leave has been factored into this estimate.
MG Directors will deviate from the Profit Sharing Mechanism to the extent required to pay a full year price of $5.20/kg MS, by providing access to up to $100 million.
This effectively means a lower payout to shareholders and unit holders.
However, the Board has already announced it has suspended dividend payments. No final dividend was declared in today’s announcement.
Also in today’s announcement, MG said:
- 2016/17 revenue of $2.5b was down 10.3% on the previous year
- The co-op took 35c/kg MS from internal funds to achieve the final 2016/17 milk price of $4.95/kg MS
- The co-op posted a 370.8 million dollar loss for the 2016/17 financial year
- Its gearing level (the proportion of borrowed funds to equity) is 37.7%, up from 29% the previous year