MG-Coles deal a boost for dairy industry: Ryan

Murray Goulburn signs Coles deal

DEPUTY Premier and State Development Minister Peter Ryan welcomed Wednesday’s deal between Australian farmer co-operative Murray Goulburn and supermarket Coles.

“The $2 billion, 10-year deal shows the great faith in the Victorian dairy industry and means an Australian-owned enterprise will now enter the fresh milk market in significant volume, Mr Ryan said.

“The deal will see the construction of a $120 million Murray Goulburn factory in Melbourne.

“This will mean 25 direct jobs, 50 more jobs created downstream and 150 jobs in construction.

“The new deal will drive Murray Goulburn to recruit about 50 new farmers to its company,” he said.

“Importantly, as a co-operative owned by 2480 farmers, Murray Goulburn aims to put its profit back into increasing the farm gate price paid to farmers.

“This can put pressure on other competing companies to increase their farm gate prices to ensure their own supply,” Mr Ryan said.

“The dairy industry in Victoria is one of our great strengths. Dairy was our leading farm export last year, contributing $1.9 billion to a record total of $9 billion worth of exports.”