Abc Murray Goulburn News

# ABC Murray Goulburn News: Company Announces Major Restructuring

**Murray Goulburn slashes milk price, plans to sell assets**

### **Troubled dairy processor Murray Goulburn has announced a major restructuring that will see it slash its milk price and sell off assets.** The company, which is Australia's largest dairy processor, said it would cut its milk price by 10 cents per liter, effective from 1 July 2016. The company also announced plans to sell off a number of its assets, including its Camperdown cheese factory and its Koroit milk powder plant. The restructuring is part of a bid by Murray Goulburn to reduce its debt and improve its financial performance. The company has been struggling in recent years due to a combination of factors, including falling global dairy prices and rising input costs. The milk price cut is likely to have a significant impact on dairy farmers, who are already facing tough conditions. The cut will reduce the amount of money that farmers receive for their milk, which could make it difficult for them to stay in business. The sale of assets could also have a negative impact on the local economy, as it could lead to job losses and a decline in investment. The Australian government has said it is working with Murray Goulburn to help the company through this difficult period. The government has also announced a number of measures to support dairy farmers, including a $100 million assistance package. **In a statement, Murray Goulburn chairman John Spark said the restructuring was necessary to ensure the company's long-term survival.** "We understand that this is a difficult time for our farmers, but we believe that these changes are necessary to ensure the long-term sustainability of the company," Mr. Spark said. **The restructuring has been met with mixed reactions from dairy farmers.** Some farmers have welcomed the changes, saying they are necessary to improve the company's financial performance. However, other farmers have expressed concerns about the impact of the milk price cut on their businesses. The restructuring of Murray Goulburn is a significant event for the Australian dairy industry. The company is one of the largest dairy processors in the country, and its financial difficulties are a reflection of the challenges facing the industry as a whole. **The government's support for Murray Goulburn and for dairy farmers is welcome, but it remains to be seen whether it will be enough to help the industry through this difficult period.**