EXCLUSIVE
A CONSORTIUM of investors has revealed an ambitious plan to purchase and operate the dormant dairy factory at Leitchville.
The proposal to revive the former Murray Goulburn factory has been publicised just hours before high-level dairy industry talks in Canberra.
Murray Goulburn, Australia’s largest farmer-owned dairy co-operative, closed the plant in 2010 with the loss of 80 jobs, citing a downturn in the industry after years of drought.
It was previously operated by Kraft to produce packaged sliced cheese.
The closure of the factory was a devastating blow for Leitchville and had a flow-on employment impact on people in neighbouring towns and districts.
The identity of the investors is shrouded in secrecy, but their proposal would be to purchase the Leitchville plant and to operate it to produce cheese in partnership with Murray Goulburn for the export market.
Speaking in their behalf, Primary Policy Partners director, Andrew Gibbs said that the investors wanted to purchase the factory outright, update the plant and operate under licence to Murray Goulburn.
Murray Goulburn experienced a backlash recently when it dropped the price it was paying to suppliers.
The entire Murray Goulburn board will meet the Prime Minister, Malcolm Turnbull and Deputy Prime Minister, Barnaby Joyce on Tuesday to discuss industry issues.
Mr Gibbs said that investors held preliminary discussions with Mr Joyce two weeks’ ago.
“These people are big business and they are committed to working with Murray Goulburn,” he said.
“Murray Goulburn will be strongly encouraged to enter into fair dinkum discussion.”
Mr Gibbs said that the consortium first considered the Leitchville plant to process pre-packed pork products for the Asian market.
“Once they saw the plant, they rethought their proposal because it is still well set up for cheese production and they saw an opportunity for investment that should suit Murray Goulburn as well,” he said.
“However, options for meat processing are still under consideration.”
The former Federal Minister for Industry and Science, Ian Macfarlane had been touted as a potential negotiator who would have the respect of both parties in facilitating an agreement.
