Australia's Biggest Dairy Blames Lower Milk Intake For 22% Drop In Sales

Australia’s Biggest Dairy Blames Lower Milk Intake For 22% Drop In Sales


(updated 28th September 2020)

1 Minutes Read

Murray Goulburn's sales drop by a staggering 22 per cent - Media Credit:
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A major Australian dairy brand has announced a 22 per cent drop in milk sales – blaming lower intake for the $370.8 million loss.

Australia’s largest dairy supplier – Murray Goulburn [MG] – is closing facilities and cutting out product lines in order to recoup the losses.


Bosses at MG revealed that milk intake has dropped 2.7 billion litres in the 2016-17 financial year – and is expected to drop even lower.

The drop comes despite shoppers boycotting no-named milk in support of branded milk, in a bid to support Australian farmers.

In addition to lowered milk intake, producers had to deal with adverse seasonal conditions, according to a report by ABC News.


MG’s CEO Ari Mervis said the last year has ‘tested the resolve and strength’ of suppliers, and said the ‘coming months would be pivotal for the future of the business’.

MG has discontinued its infant formula line, and will also be shutting down three processing facilities in an effort to recoup the loss in profits sustained last year.


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