Milk supply contracts post 2015

red bull

I see lots of info for supply contracts post 2015 for glanbia dairygol and kerry. Any news on the northern half of country Lakelands Arrabawn or Connacht Gold spose there will be less expansion there, but maybe new entrants. Any views ?

TEAT SQUEEZER

red bull wrote: »

I see lots of info for supply contracts post 2015 for glanbia dairygol and kerry. Any news on the northern half of country Lakelands Arrabawn or Connacht Gold spose there will be less expansion there, but maybe new entrants. Any views ?

the dairygold schemozzle has put the contracts issue on the back burner in glanbia anyway... instead of signing up for a commited amount supplied post 2015 its now a case of them sounding you out on an informal basis... its an ill wind :D..

delaval

red bull wrote: »

I see lots of info for supply contracts post 2015 for glanbia dairygol and kerry. Any news on the northern half of country Lakelands Arrabawn or Connacht Gold spose there will be less expansion there, but maybe new entrants. Any views ?

Milk will be moving South and East:rolleyes::rolleyes::rolleyes::rolleyes::rolleyes::rolleyes::rolleyes::rolleyes:

kevthegaff

think arrabawns supplier are gona have to buy shares in relation to the milk theyre sending in. and then there is a 2c levy on additional milk.

freedominacup

kevthegaff wrote: »

think arrabawns supplier are gona have to buy shares in relation to the milk theyre sending in. and then there is a 2c levy on additional milk.

I honestly think we have enough of costs to bear in realtion to our expansion plans without adding extra profit to processors bottom lines:mad:. Every heifer you carry above your replacement rate will cost you the bones of €1200. So a guy moving from 140 to 160 cows with a milk sold of 5500l/cow will have a cost north of 3 cent per litre for carrying the extra heifers. They then want to land a surcharge of another 2 cent on top of that and we have no charge for the extra infrastructure the 20 extra cows might require priced in yet. That 3 cent will be much higher as you move down in cow numbers so a guy going from 80-100 will have a much higher cost to bear.

FUP 'EM if you are in the milk processing business then be in the milk processing business and cover your own expansion costs. If you can't do it at a profit then stop doing it and someone who is capable of doing it will step in.

delaval

Well at least here in Glanbia we know where we are going

loveta

Lakeland are talking of a 1cent litre bonus/payment when signed up think its on a yearly basis there reason for this "so they say" is so they know what amount of product they will have to work with(appox) and not have say a group of guys pulling out during the year.They say the have plenty of processing capacity to handle extra milk but dont have as big a market for may+june so they have graded fines if you go over 13% of your "QUOTA" During them months but after that its all systems go.... "i think"

milkprofit

delaval wrote: »

Well at least here in Glanbia we know where we are going

where Exactly

Timmaay

milkprofit wrote: »

where Exactly

2cent/litre above your March 2012 quota amount, and the new drying factory on the way, and then the June 16% limit. I'll take that over the mess down in Dairygold at the minute! Probably more T&Cs to come from Glanbia to secure a stable supply of milk.

delaval

Timmaay wrote: »

2cent/litre above your March 2012 quota amount, and the new drying factory on the way, and then the June 16% limit. I'll take that over the mess down in Dairygold at the minute! Probably more T&Cs to come from Glanbia to secure a stable supply of milk.

Could not have put it better

mahoney_j

Arrabawn situation as follows ,You will need 2500 shares for every 100000 ltrs of quota owned and supply no more thn 15% of your yearly volume at peak with penalties if you go over this ammount.You will have to declare every october how much milk you intend to produce in the following year.Its going to cost me a bit as i have only about 1600 share in my own name as i only took over from me dad 3 years ago.Ive also been buying quota (96000 ltrs)so now going to have to fork out on the double,Not impressed!!.A lot of anger bout ths at recent area meetings of the cooop.Arrabawn has always been traditionally one of the poorer paying coops and now they want all suppliers wether expanding or not to build up their shareholding whilst giving no guarntee on price which i appreciate is hard to do.the big question i would have is why cant the coop fork out for this(5 million is whats needed to bring plant up to scratch)They only had a cent per litre profit on there last audited acounts.they were unable to give an acceptable answere on this except all the usual tripe

delaval

I think this new facility of Glanbia's will be full of milk if other processors have any cop on. As I have said before why use your own money when facilities are available elsewhere. Glanbia as well as others already sharing resourses so why not build these relationships. As mahoney and others say the farmer is the one to pay for it all so we really need to be getting value. I think it's time some boards swallow their pride and pool resources rather than comitting huge money into what are essentially small operations