Changes afoot for south-west dairy industry

A mooted closure of the Allansford Saputo factory during feisty EBA negotiations raises more than a few interesting discussion points.

Saputo says chairman and chief executive officer Lino Saputo was speaking about changes already made when he addressed the annual investor conference in Montreal, Quebec, on Thursday last week in relation to processing plant closures.

What does appear certain is the Allansford factory is currently flat out, pumping out premium products at record levels and the only certainty in future is more change in the dairy industry.

The drop of the national annual milk pool from 11 billion litres to about eight billion litres has to have flow on impacts.

There are a large number of milk processors driving up prices, but how long brokers can remain influential in the markets is unknown.

There's basically a shortage of milk and the needs of the major factories drive them to take milk from some of the so-called brokers when they can.

The beauty of that is farmers are now guaranteed premium prices.

There have been hundreds of farms in the south-west getting out of dairy for a number of reasons - including cost increases, diversification, labour shortages, farm sales, retirement and climate issues.

Because of bushfires and then floods north of the border, the pool has further reduced.

The demand for south-west milk is now greater than ever.

On top of that dairy factory workers are seeking a four per cent annual increase in wages - something at least processor Saputo is not entertaining.

What's the end result of that?

If one party doesn't back down there will be milk spilt, poured down the drain, wasted and customers like cafes that need milk every day will seek alternate suppliers.

This is at a time when New Zealand farmers are being paid at least 20 per cent less than their Australian counterparts.

The Kiwis will be keen to exploit any disharmony in the Australian market with the cost of the raw product in their favour.

No Australian farmer will win out of that.

On top of that milk processor Bega has its own issues with a strike in New South Wales.

Woolsworths and Coles workers (union members) are also taking action chasing what they see as a fairer share of their employers' multi-billion dollar profits.

There is much to play out in the dairy industry - little is certain but the price of coffee is not expected to drop any time soon.

In other news this week, south-west footy fans have been gearing up for today's AFLW match at the Reid Oval between the Cats and the Bombers.

Read this story by sport journalist Meg Saultry to learn all you need to know about the match.

Bombers head coach Natalie Wood, who grew up in Warrnambool and is a trailblazer in the sport, will be out to win her first game in her old stomping ground, while Branxholme's Georgia Clarke will have plenty to prove in red and black against her old side Geelong.

A city-wide review of Warrnambool's parking which suffered "frustrating delays" is now expected to be completed early next year.

And plans for a new CBD car park to ease demand were put on hold.

Warrnambool City is in a "sound financial position" after a "fairly tumultuous year", councillors say.

In adopting its 2022-23 annual report at the council meeting on Monday, October 2, mayor Debbie Arnott said the work of council provided value for money.

Plans show a Port Fairy developer has decided to knock down historic walls dating back 170 years, just two months after pledging to save them.

After The Standard published a story airing the residents' concerns, the owner of the property contacted this masthead to say the walls would not be destroyed.

But now the historic walls are facing demolition again.

Moyne Shire Council mayor Karen Foster says she won't be standing for a second term in the top job.

A state government planning panel has given a developer the green light to build a 13-turbine wind farm west of Woolsthorpe.

A few alcoholic beverages led a Boorcan man to steal a tractor worth $150,000 from a farm near Terang.

The cost of replacing the broken lift at Warrnambool's Pavillion cafe and bar is more than $800,000 but the city council is yet to set aside money for it.

It was also revealed this week south-west residents are waiting up to three years to access dental care.

Also making news this week:

Until next week, take care and stay safe,

Rachael Houlihan, deputy editor.