In a statement issued yesterday, Murray Goulburn confirmed the sale of its Kiewa Country Milk brand to a “local business”.
“MG is pleased to announce that it has entered into agreements to sell the Kiewa Country brand and certain associated assets to a local business that is expected to recommence local manufacture in the future. The commercial terms of the transaction are confidential,” the company said.
Joan Rylah, Liberal Member for Braddon welcomed the news of the sale, stating that it is a positive step towards a bright future for the Edith Creek facility.
“I welcome the commitment from Murray Goulburn to now prioritise the sale of the Edith Creek plant. The Circular Head Regional Economic Working Group continues to work towards securing the future of the Edith Creek site, with the hope it can be sold,” Rylah said in a statement.
“A sale of the facility would secure jobs in the region, and the Hodgman Government and the Circular Head Regional Economic Working Group will continue to administer the $1.5 million in funding committed to programs and initiatives which will assist the diversification and economic development of the Circular Head region, while supporting affected workers and their families.”
In the same ASX release, Murray Goulburn revealed that total FY18 milk intake is expected to be approximately 2.3 billion litres.
“The reduction in milk intake has not impacted the opening average available Southern Milk Region farmgate milk price (FMP1) of $5.20/kilogram milk solids (kg MS),” reads the statement.
“The impact of the reduction in milk intake has been offset by various cost and business improvements compared to budget. While maintaining the forecast FY18 FMP range of $5.20-$5.50/kg MS, if the recent strengthening of the Australian dollar was to continue over the full financial year, this could create some uncertainty in relation to the achievability of $5.50/kg MS. MG will continue to consider all avenues to maximise the available FMP.”
The company said that it will provide a further business update once it releases the FY17 full year on results announcement on 22 August 2017.