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To buy or not to buy Milk Quta?

  • 21-10-2010 6:48pm
    #1
    ladymuck
    Registered Users, Registered Users 2 Posts: 55 ✭✭


    Hi all,

    I need some advice. I got the Glambia Milk Quota trading scheme details today. I want to increase the Herd. What do ye think? Should I buy or not buy Milk Quta? What price do you think it is to buy?


Comments

  • #2
    snowman707
    Closed Accounts Posts: 2,279 ✭✭✭snowman707


    quotas due to abolished circa 2015, I would not buy, or if buying would not give anymore than cost of leasing over 5 years,

    just bear in mind there is a possibility that milk price may fall and input costs (feed, fertilizer, etc,) may increase,

    TBH I did not expect milk price to hold as good as it did this back end, but am more than happy to be proved incorrect. :eek:


  • #3
    theroad
    Registered Users, Registered Users 2 Posts: 167 ✭✭theroad


    If anyone knows what's going to happen in 2015 they're not saying. But one argument for buying quota would be that post-quota the processors will demand some sort of buy-in charge up front for any extra milk the farmer sells them. I've heard it called a stainless steel charge, you'd get shares in return. So if you own the quota going into 2015 you might not have to pay that charge when you sell extra milk. It seems completely crazy to me that we would have to pay someone to buy our milk, but there's a lot in dairying I don't understand. Politics mostly. I'm alright with it until the milk leaves the farm gate...


  • #4
    5live
    Closed Accounts Posts: 4,438 ✭✭✭5live


    I bought 50000 litres last year for E3k as i have the land and housing(almost) to expand. I will fill most next year i hope and may buy more then depending on what the thinking is on the proposed stainless steel charge. But as a kerry supplier it doesnt look like quota will be an issue. And as kerry is 12 million gals under quota this year and processing capacity for an extra 40 million gallons available it doesnt look like i will buy again. Glanbia look like they will have a huge surge in production post 2015 so i would try to find out if there will be a stainless steel charge in future and is it cheaper to have production rights now rather than buy later. As snowman says, if you can fill it without other costs appearing then look at the leasing price as being the base and what access you will have to it up to 2015. I suppose it isnt an answer but just a few issues i am dealing with in my own case that seem to mirror yours


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