Murray Goulburn Co-operative
| Company type | Cooperative |
|---|---|
| Industry | Dairy processing |
| Founded | 1950 |
| Founder | Collective of dairy farmers |
| Defunct | 2020 |
| Fate | Operational assets divested to Saputo Inc; cooperative liquidated |
| Headquarters | Australia |
Area served | Australia, international markets |
Key people | Ari Mervis (CEO and Managing Director, from 13 February 2017) |
| Products | Milk, cheese, lactose-free dairy products, whey, milk powder, concentrate, casein, sports proteins |
Number of employees | Over 2,000 |
| Parent | Saputo Inc. (from 2018) |
Murray Goulburn Co-operative Co. Limited—also referred to as Devondale Murray Goulburn—was a dairy-processing cooperative. In 2018, facing financial challenges and disputes with suppliers over sustainable pricing models, its operational assets were divested to Saputo Inc, a publicly traded Canadian dairy corporation. Subsequently, the trading name transitioned to AG Warehouse, and the cooperative commenced liquidation proceedings in 2020.
Established in 1950 by a collective of dairy farmers, Murray Goulburn expanded to become the foremost milk processor within Australia.
The company encountered significant difficulties in 2016 when milk prices dropped below production expenses, prompting demands for board restructuring or the sale of the cooperative. Following this, Ari Mervis—formerly CEO of Carlton & United Breweries—was appointed as CEO and Managing Director, assuming office on 13 February 2017.
Profile
Devondale Murray Goulburn manages nine production facilities located in Victoria and Tasmania, supported by a network exceeding 2,500 suppliers and employing over 2,000 personnel. It processes in excess of 35% of Australia's milk output (3.3 billion litres), converting it into products for both local consumption and international export.
Operating across more than 100 global markets, the company ranks as the largest container handler at the Port of Melbourne, exporting upwards of 375,000 MT (equivalent to 23,500 containers) annually. Its international operations account for roughly 9% of worldwide dairy trade and generate an annual revenue near A$2.4 billion.
All manufacturing sites maintain ISO 9001:2000 certification alongside NSF HACCP – 9000 accreditation, ensuring stringent manufacturing protocols and food safety compliance. Independent verification of product standards is conducted by Dairy Technical Services based in Melbourne, Victoria.
Devondale Murray Goulburn pursued acquisition attempts for Warrnambool Cheese and Butter in both 2010 and 2013; nevertheless, Canadian dairy company Saputo, Inc. secured an 85% ownership stake in Warrnambool in 2014.
In February 2016, the cooperative finalized a five-year supply agreement with Coles Supermarkets for private-label pasteurized milk and cheddar-style cheese distributed across Victoria and NSW. However, by July 2016, it lost a significant supply contract with Woolworths, impacting finances by approximately AUD 108 million.
In May 2018, Devondale Murray Goulburn was purchased by Saputo Inc. for $1.31 billion.
Business units and brands
- Devondale (consumer-focused milk and cheese line)
- Liddells (range of lactose-free dairy products)
- Corporate brands division (supplier servicing Consumer Brands)
- MG Nutritionals (dedicated research division)
- MG Ingredients (provider of whey, milk powder, concentrate, casein)
- MG Qingdao Dairy
- MG Trading
- Ascend (brand specializing in Proven Sports Proteins)
Controversy
At the beginning of 2016, Managing Director Gary Helou resigned amid concerns related to substantial financial losses, a downgraded profit forecast, and a steep reduction in farmgate milk prices following the cooperative’s partial listing on the stock exchange. The company enforced an AUD 200 million clawback on milk payments already made, obligating approximately 2,500 farmers to reimburse the difference. This resulted in remuneration falling below production costs—a situation brought to public attention in an August 2016 Four Corners investigation.