A week after announcing it will sell MILCast in Finley, Murray Irrigation Limited has revealed it will now undertake a wholesale review of all its business operations.
The company says it is in response to the drought and on-going dry conditions that are heavily impacting the region.
MIL chair Phil Snowden said two years of drought had taken its toll on local farmers and their communities, which in turn places cost pressures on the business.
‘‘Murray Irrigation’s job is to deliver water to farmers — when there is no water, that obviously impacts on the demand for our service,’’ Mr Snowden said.
‘‘While some services remain, such as the delivery of our Allocation Advance and other water the company has made available to customers, and purchased and environmental water, we must adjust business operations to reflect the downturn in agricultural productivity in the region.
‘‘We’ve already made the decision to sell MILCast, our pre-fabricated concreting business, and established a Drought Response team to work with customers and agencies to improve services.
‘‘However, we must also look to drive efficiencies internally. The review will look at all facets of the business including costs, revenue, service delivery, investments and staffing levels.’’
Murray Irrigation’s newly formed Joint Consultative Committee will be heavily involved in the review to ensure that employee voices are heard throughout the process.
CEO Phil Endley said the review is part of a two-pronged approach towards ensuring long-term sustainability, with the company continuing to advocate for improved water resourcing for the region.
‘‘We’re calling for an early season commitment of 200 gigalitres to be made available to the region every year. Improved water certainty will provide some respite for farmers who are feeling the pain of on-going dry conditions,’’ Mr Endley said.
‘‘This certainty would allow them to better plan and manage their farming business, and in turn, secure food and fibre for Australia.
‘‘We are committed to the region and our customers, and must ensure that we balance service levels with costs while working to secure future farming businesses.’’