Dear Mr Mervis below is an outline of an idea proposal to buy...

Dear Mr Mervis below is an outline of an idea proposal to buy koroit being discussed by farmers

A brief overview

Dairy farmers, both wet and dry, would like to know if they could use the money they will be receiving from the sale of MG to purchase the Koroit processing facility, along with any unit holders that may wish to participate in the proposal.

It would also be envisaged that it might be opened to the broader dairy farming community as they may also wish to participate in this venture.

The reasoning is that farmers would still be able to own and have a major stake in a southern milk pool processing facility, to have some sort of ownership and control/influence in the industry beyond the farm gate when it comes to milk pricing and pricing structure.

Our aim would then be to list that company on the ASX. The board of the new processing company would not be farmer controlled. Behind that would be a farmer owned milk supply co-op.

We would like MG to put out a statement about this proposal to farmers before the EGM occurs. If it is received positively, we then ask MG to ask the same question of unit holders

We would like to have the first right of purchase or refusal of the Koroit assets,

The price farmers/unit holders would pay is the price or value that Saputo put on it as part of the take over which the MG board accepted.

This would not slow the sale of MG as we will agree to sell MG but would like some time to try and bring this about.

As part of the divestment undertaking with the ACCC, Saputo has already agreed to put in a temporary or at arm’s length management.

We feel this proposal is and will be in the long-term benefit of and for the Australian dairy industry as a whole.
The ACCC, ADF and UDV have been made aware of this proposal.