August 28, 2014

Murray Goulburn sees profit drop from previous year's record

Dairy processor, Murray Goulburn, has announced a US$29.3 million profit in the past financial year, a drop from the US$34.9 million recorded the year before.

Gary Helou, the managing director of Murray Goulburn, said the company has also revised down its milk price forecast for suppliers this year. Any price step-ups are currently unlikely, as major international players are not buying.

"The global dairy ingredients prices have pretty much halved over the past three months," Helou added. "They halved because the world's biggest importers, Russia and China, have not been buying in the last couple of months."

However, Helou is confident that demand from China will pick up once a backlog of stock is cleared.

In the meantime, Murray Goulburn has dropped its outlook price to US$6 per kilo of milk solids.