The Great Southern Star - September 8, 2009

Page 1

Published at Leongatha for South Gippsland

36 McCartin Street, Leongatha 3953 PHONE: (03) 5662 2294, FAX: (03) 5662 4350 ACN 006 507 580 ABN 61 318 952 541 PRINT POST 336735 10006 Email - news@thestar.com.au advertising@thestar.com.au

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PAGES 17-19

The Great Southern

Star

INSIDE

TUESDAY, SEPTEMBER 8, 2009

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PUBLISHED TUESDAY 56 PAGES

Classic cars Page 30 Page 13

Daffodil festival

Page 50

Ware wins

Rock bottom no longer STONY Creek have defied the cynics who thought they could never again compete with the leagues’ big boys. The Lions have made it into their first grand final since 1985 with a convincing win against Korumburra/Bena in the prelimary final. Stony Creek star Justin Shields (pictured, centre) kicked a couple of handy goals on Saturday, but used his rear end to great affect against Bulldog opponent Tim Smith. Stony will need to use every trick in the book to overcome Wonthaggi Power, which will be playing in its fifth consecutive grand final. See all the details in Star sport. Photo courtesy Gerard Bruning @ www.fourcorners. biz

Dairy prices hope Upward trend for milk powder buoys local industry By Brad Lester SOME long-awaited good news in the dairy industry has finally arrived, with milk powder prices set for an upward trend. Fonterra’s monthly international auction of bulk milk powder last Tuesday resulted in an average climb of 24.6 per cent, on the back of growth of 25.8 per cent in August. The positive news came the day before South Gippsland Shire Coun-

cil heard the municipality’s economy is likely to feel the effects of poor dairy prices for at least the next 12 months. Regional dairy organisation GippsDairy warned South Gippsland Shire farmers’ balance sheets have been devastated by price cuts of 50 per cent compared to last year and most farmers were unlikely to make money this financial year. Young dairy farmers laden with debt are expected to bear the brunt of the impact. Many farmers are changing

their loans to interest only this year to improve cash flow. Fonterra’s globalDairyTrade trading result gave farmers additional confidence in a market turnaround, said Fonterra’s managing director of global trade, Kelvin Wickham. “The globalDairyTrade result is positive news as it indicates that dairy prices have recovered from recent lows,” he said. “But uncertainty remains. Global supply has contracted but it remains to be seen whether demand has returned

to sustainable growth.” But Fonterra suppliers still remain unclear as to when the company would pay step-ups. “The market gains will need to be consolidated and the Australian dollar to come off its recent peaks before significant improvements in price will be seen at the farmgate level in Australia,” Mr Wickham said. Agricultural consultant Andrew Debenham said the early step-up from Murray Goulburn and the two power auction increases were returning much

needed confidence to the industry. “We have seen wheat pricing fall from approximately $400 a tonne to projected ASX Futures prices in January 2010 of $231 a tonne. Similarly, barley in January is projected to be $165 a tonne,” the principal of Leongatha firm, Debenham Australia, said. “Grain prices are going down, fertiliser prices have eased and I believe we are starting to see signs that we have seen the worst of the milk pricing. Continued on page 6.


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