The first half of 2018 has been challenging for Murray Goulburn, chief executive officer, Ari Mervis said, when commenting on the half-yearly financial reports.
The company has reported a $14 million after tax profit, but with a 29 per cent reduction in milk supply compared to the same period last year.
‘‘The inability to pay a competitive milk price has resulted in a substantial loss of milk.
‘‘While management initiatives continue to address the cost base and commercial performance, the business remains exposed to competitive pressures and future refinancing requirements.’’
The company has a net debt of $474 million.
Mr Mervis said the step-up in milk price announced in October last year had helped in stabilising milk intake.
‘‘Successful completion of the Saputo transaction is expected to result in a favourable outcome for stakeholders, including ensuring value for shareholders and unitholders and a competitive milk price and milk collection commitment for suppliers.’’