Buy quota or not?

QUOTA2015

Hi all new on here just wondering if anyone has an opinione on this?

Currently at home to help out with as father not up to it anymore. Quota is only 33000 gallons not the trading scheme is up tomorrow glanbia supplier. Just wondering if anyone thinks its a good idea to buy some quota now or is it pointless as it will be gone in 2015 and what price is it?

Tipp Man

QUOTA2015 wrote: »

Hi all new on here just wondering if anyone has an opinione on this?

Currently at home to help out with as father not up to it anymore. Quota is only 33000 gallons not the trading scheme is up tomorrow glanbia supplier. Just wondering if anyone thinks its a good idea to buy some quota now or is it pointless as it will be gone in 2015 and what price is it?

Could be wrong but don't suppliers under 77k gallons get the majority of their levy back??

Although i believe you will have first preference to purchase milk

If quota is going to be linked to your supply levels post 2015 then you will want to buy

How many cows could you milk relatively easy?

QUOTA2015

To be honest i am not totally up to speed on the quota situation entitlemenys etc here just in at the deep end!

Could probably milk 70 comfortably. more if rented land for silage etc. If staying at it id want to increase cows to the maximum.

Timmaay

Post 2015, you will be charged the 2cent levy for anything above your current quota, any new quota you purchase since that announcement wont be added on! I had thought about it, rang up my local glanbia man and that was the answer he gave me! They've nailed us every way ha!

kevthegaff

i bidded 10 cent but i wont get any, i would apply for priority if u fall into that category

QUOTA2015

kevthegaff wrote: »

i bidded 10 cent but i wont get any, i would apply for priority if u fall into that category

How do I know if I fall into this category?

boroboy

QUOTA2015 wrote: »

How do I know if I fall into this category?

ask your manager immediatly,if u fall into priority category buy as much as u can if u intend to stay milking and increase numbers

kevthegaff

boroboy wrote: »

ask your manager immediatly,if u fall into priority category buy as much as u can if u intend to stay milking and increase numbers

under 35 you have to be, might need a herd number, ring your co op ask them

royalmeath

If you have the cows to fill the quota go ahead and buy, but if you dont then put your cheque book away and wait.
I heard glanbia milk will make around 18 cent this time that means you will lay out around eight grand for 10000
gallons. If your buying cows to fill this you will have to find another 1300/ cow or around 11700 euro. So straight away
you have generated a new debt of around 20,000 euro and bear in mind your new quota will no longer exist in 3 years time.
Why dont you concentrate on building your herd from the bottom up, breed all your cows to dairy bulls be it a.i or a stock bull.
If you find you are stuggling to get enough heifers go out and buy a few, look after them and in a little over two years they will
start looking after you.
Getting back to the quota situation you will it is true for everything above your current quota you will have to pay 2 cent a litre
to glanbia for five years to help fund the additional equipment required to process the higher volumes of milk.
That means for an extra 45000 litres your outlay will be 900 euro and over five years that comes to 4500 euro.
It is also envisaged that after five years you will recieve your monies back in a similar way the rotating share plan used to operate
this is according to the milk advisor.
Best of luck what ever you decide to go with!

QUOTA2015

hi guys thanks for all the replies/opinions, after taking stock of what ye had to say and talking to teagasc guy, we decided to apply for as much priority quota as we will get @ 5 cent a litre this will not be much i must say maybe 1000 gallons or sumthing, probably guaranteed 7 to 8000 gallons of fleximilk next year as we are under 77000 gal quota according to glanbia milk manager so will aim to supply that amount.
Could nt see the sense in buying any at 15 or 18 cent and then pay 2 cent in 2015 ontop of that again.

anyways cheers for the responses