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FROM PAGE 23
The Great Southern
Star
TUESDAY, JULY 7, 2009
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PUBLISHED TUESDAY
64 PAGES
INSIDE
Ready to face the storm: Koonwarra dairy farmers Gary and Karen Davison, with son Tom, are steeling themselves for the latest slide in dairy prices.
Rain at last ...page 3
Award winner ...page 4
Parrots back ...sport
Sour milk Lowest Murray Goulburn opening price in 10 years
By Brad Lester
INDEX Column 7 ............ 10 Opinions ............. 12 Property Guide... 29 Kids’ Page .......... 42 Entertainment .... 43 Classifieds.......... 50 Sport .............. 54-64
DAIRY farmers will be paying to produce milk after a devastating opening price was announced last week. And farmers will have to wait at least six months for milk prices to improve from the lowest opening prices for at least 10 years. The prices are below the cost of production for many farmers and could result in some leaving the industry, affecting long-term milk supply. The South Gippsland economy revolves around the dairy industry and will suffer as farmers have less money
to spend. Major co-operative, Murray Goulburn announced an average price of 26 cents a litre last Thursday and its key competitor, Fonterra, 27 cents a litre on Friday. United Dairy Power will offer a higher average of 34.5 cents, due to its dependence on the Australian market, free of overseas prices fluctuations. Burra Foods has revealed a similar price to Fonterra, at $3.60 per kilogram for milk solids. MG’s opening price is 35 per cent down on last year’s high season starting price of 40 cents a litre. The July monthly milk price is just $2.79 a kilogram butterfat and $7 for protein – the highest average base prices will be until April, 2010.
The companies have attributed the low prices to poor international prices, as demand drops as a result of restricted finance. The high Australian dollar is also making Australian exports more expensive on the world stage. MG chairman Ian MacAulay said the co-operative is hoping prices will improve in the “not too distant future”, but said a price rise could be six months away at best, and possibly not until late in the next financial year. “We are starting to see a drop in milk production worldwide due to the low prices and the market will have to respond, and hopefully the price will start to pick up in the next 12 months,” he said. Continued on page 9.