Last year, the co-op lost out to Canadian dairy company Saputo in the takeover battle for Warrnambool Cheese and Butter processor in Victoria.

Murray Goulburn is the biggest co-op in Australia, handling about 37% of the country’s milk supply against Fonterra’s 20%. The co-op, which processes over 90% of New Zealand's milk, has held its price forecast for this year at NZ$4.7/kg milk solids (22 c/l).

Global Dairy Trade

Kiwi dairy farmers will be anxiously watching if dairy commodity prices continue to rise at this week’s GDT auction.

Although main dairy ingredient prices have fallen by 40% globally, the co-op mitigated the impact with a strategic shift towards higher value finished goods such as nutritional and the continued growth in international dairy foods.

This is the third highest forecast milk price in the co-op’s history and is 12% below last year’s record price of AU$6.81/kg milk solids (39.2 c/l)

Murray Goulburn is proposing a new capital structure, similar to the NZX-listed, Fonterra Shareholders Fund. It will be put to shareholders next month with a view to a listing on the ASX around mid June if it gets the required approval.