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Two Murray Goulburn directors quit in two days

Dairy co-operative Murray Goulburn said on Wednesday that Special Director, Kiera Grant has resigned from its board.

Grant was only appointed to the board in March this year and her resignation follows the departure of another director Max Jelbart, who resigned due to poor health on Tuesday.

“It is regrettable that we have lost such a capable and experienced director before she really had an opportunity to contribute to Murray Goulburn’s future. However, we completely understand Ms Grant’s decision in the circumstances,” said Murray Goulburn chairman Phil Tracy.

Last week MG’s managing director Gary Helou stepped down following the co-operative’s decision to cut both its profit forecast and the price it pays framers for milk.

The co-operative said in a statement at that time that it now estimates a net profit after tax of between $39 million and $42 million. Originally, in its prospectus, Murray Goulburn had forecast a profit of $89 million. Then in February it lowered that figure to $63 million.

Tracy said yesterday that the Board now needs to win back the support of shareholders and dairy suppliers.

The decision to cut prices paid to suppliers by 10 – 15 per cent has caused much emotion among dairy farmers.

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