We welcome new dairy farmer-shareholders to our 100 percent farmer-controlled co-operative. We offer a competitive milk price, share dividends (subject to Board approval), and access to a broad range of services.
We play a vital part in the daily lives of dairy farming families through milk pricing, on-farm collection, on-farm services, MG Trading stores, information services, finance and shareholding trading.
Regionally-located field service teams maintain strong relationships with dairy farmer-shareholders and support queries relating to farm income estimates, finance, milk quality and share matters.
Find out more about becoming a Devondale Murray Goulburn dairy farmer-shareholder today. Contact your local Field Services Officer or call +61 3 9040 5000.
In accordance with MG’s co-operative principles, suppliers of MG must also be owners of MG shares. An initial 500 ordinary shares in MG must be acquired by all shareholders associated with a supplier at the then current market price, on commencement of supply to MG (Initial Shares).
MG has established arrangements under which the Initial Shares will be acquired on behalf of the relevant shareholder and provided to it at the closing price on ASX of Units in the MG Unit Trust on the date of purchase. The Initial Shares will be paid for via a deduction from the first milk payments owed by MG to the relevant associated supplier.
The principles governing the requirement for suppliers to own shares in MG are set out in MG’s Share Standard Policy, the Murray Goulburn Constitution and MG’s Share Offtake Policy, which are available here.
MG shareholders are expected to meet the Share Standard. The Share Standard is the number of MG shares a shareholder is expected to hold based on the volume of milk the supplier associated with that shareholder supplies to MG. Milk volume is measured in kgms and will generally be assessed on the basis of a three-year rolling average. Each shareholder is expected to hold one MG share per kgms they supply to MG per annum.
The key provisions of the Share Standard Policy that will be in effect from 1 July 2015 are summarised below.
- A shareholder may not hold more than 0.5 percent of the shares of MG regardless of the amount of milk they supply to MG (Hard Cap).
- Shareholders who are below their Share Standard are not able to sell MG shares through the Shareholder Trading Platform (STP), although they will be able to buy MG shares through the STP up to the Hard Cap.
- Shareholders who are above the Share Standard will be able to sell Shares (down to their Share Standard), subject to the three-year sell down rule in certain circumstances, or buy Shares through the STP up to the Hard Cap.
The Share Standard is also relevant for voting rights in relation to MG. Shareholders are able to vote their MG shares at general meetings of MG up to their Share Standard. Any Shares held above the Share Standard will be converted into Non-voting Shares. Aside from being non-voting, Non-voting Shares have the same rights as Shares, including as to dividends, and can be traded on the STP at the same value as Shares.
There will be no penalties for shareholders who do not meet the Share Standard.
Suppliers associated with a Shareholder who does not hold enough Shares to satisfy their Share Standard will be required to participate in MG’s share off-take program. The terms of MG’s share off-take program are set out in the MG Share Offtake Policy.
Under the share off-take program, a portion of a supplier’s monthly milk payment will be paid by MG by the transfer to the associated shareholder of MG shares to assist them to meet their Share Standard over time. The minimum rate of compulsory share off-take is equivalent to $0.09 of Shares acquired per kgms of supply (which is equivalent to 0.65 cents
per litre). Shares will be acquired at a market price rather than the historical price of $1.00 per Share. Suppliers have the option to participate in the share off-take program at higher rates equivalent to $0.13 or $0.27 of Shares acquired per kgms of supply, if they wish to acquire Shares at a faster rate.
Shares transferred under the share off-take program will be acquired through purchases of Units on ASX at the prevailing market price. Shares will generally be transferred to participating shareholders on a monthly basis at an average of the daily volume weighted average prices of Units for the relevant month of supply.
The Board of MG retains the right to issue new MG shares to satisfy demand for MG shares under the share off-take program.
Once a shareholder has satisfied their Share Standard, the associated supplier’s participation in the share off-take program becomes optional. Such a supplier would have the option to continue acquiring MG shares under the share off-take program or to opt out of the share off-take program. Any MG shares acquired above the Share Standard will be converted to Non-voting Shares.
Participation in the share off-take program does not restrict a Shareholder from otherwise acquiring Shares through the STP, up to the Hard Cap.
The Board of MG retains the discretion to amend the size of the minimum rate of compulsory share off-take and the manner in which MG shares are acquired under the share off-take program.
Our Next Generation package is designed to assist new and established dairy farmer-shareholders tackle key challenges and make the most of business opportunities.
It helps our farmers realise their goals, from getting established as a dairy operator and developing their workforce, through to managing a sustainable business and succession of the family farm.
MG F@rm is an internet-based program that provides our farmers with their farm information, both production and financial, as well as current company and industry information.
MG FarmC@re program is our on-farm whole farm risk management program that consists of both voluntary and compulsory compliance reporting systems for food safety, environment, livestock and people management.
Our regionally-located Field Service Officers support our farmers in their decision making.
Food safety assurance
The co-op's food safety program, MG Milkcare, provides an assurance standard to our customers and helps our farmers meet legislative requirements.
Dairy farmer-shareholders are kept informed of a wide range of issues via email, fax and SMS text messages.
Our co-operative newspaper, the Devondaler, provides a monthly overview of supplier news.
Half yearly supplier meetings are conducted and dairy farmer-shareholders are also invited to attend our Annual General Meeting.
We offer our dairy farmer-shareholders milk payment systems tailored to each of the Sydney market and southern regions.