Milk Price- Please read Mod note in post #1

Dawggone

frazzledhome wrote: »

Name "one" that's not supporting price.

We're obsessing over price paid. Are we as obsessive about the price we earn? I'm talking solids
no penalties
bonus' to be had
ridding herds of passengers
maxing grass intake
Building covers
Selling surplus stock
Milking right amount of cows for land base
Matching winter calvers to bonus
Drying off for winter as opposed to giving cheap milk to processors
Etc

The price you're paid is the money you earn.
Efficiency is how much.

Dawggone

kevthegaff wrote: »

Im changing my thought process, Rather then increasing numbers, cull hard(may need the money) good points frazz

Thanks Kev.
The new reality...

Dawggone

Quotas gone since April. Now it's July.
The new reality is happening...:)




I did try to warn ye.

Sam Kade

Dawggone wrote: »

Quotas gone since April. Now it's July.
The new reality is happening...:)




I did try to warn ye.

Did quotas keep milk price up in 09?

orm0nd

Sam Kade wrote: »

Did quotas keep milk price up in 09?

1 year out of 30

what price would we'd be getting if the € was strong ?

Dawggone

Sam Kade wrote: »

Did quotas keep milk price up in 09?

Discuss the other 30 years of quota Sam...:)

Lookit quotas are gone. Live with it. There is a new reality now. What I've been saying for some time now is that there is a completely different reality. I was honestly trying to tell you guys that this is inevitable.
Stop believing the hype. There will be huge changes In the transition to world markets. Many will fail. It is inevitable.


I'm NOT the prophet of doom. I live with this every day.
Question is can the traditional model of dairy in Ireland live with world markets?

Sam Kade

Dawggone wrote: »

Discuss the other 30 years of quota Sam...:)

Lookit quotas are gone. Live with it. There is a new reality now. What I've been saying for some time now is that there is a completely different reality. I was honestly trying to tell you guys that this is inevitable.
Stop believing the hype. There will be huge changes In the transition to world markets. Many will fail. It is inevitable.


I'm NOT the prophet of doom. I live with this every day.
Question is can the traditional model of dairy in Ireland live with world markets?

I'd say there are a few dairymen that invested heavily over the last few years sweating now

Dawggone

Sam Kade wrote: »

I'd say there are a few dairymen that invested heavily over the last few years sweating now

See, I don't really believe that Sam.
There are guys that borrow with a plan and an end result, but there are also people that borrowed to get 'in' on the next best thing.
The latter will suffer.
The former will have stress tested their system for eventualities like this and will be well prepared to pounce.

Sam Kade

Dawggone wrote: »

See, I don't really believe that Sam.
There are guys that borrow with a plan and an end result, but there are also people that borrowed to get 'in' on the next best thing.
The latter will suffer.
The former will have stress tested their system for eventualities like this and will be well prepared to pounce.

But there is more of the latter around, remember all the hype coming up to the end of quotas.

rangler1

Sam Kade wrote: »

But there is more of the latter around, remember all the hype coming up to the end of quotas.

and the parties...some people really hadn't a clue

Greengrass1

Sam Kade wrote: »

But there is more of the latter around, remember all the hype coming up to the end of quotas.

Yes there's lots of new entrants and most are more clued in than some lads that have always milked cows. These lads I have no doubt will succeed because it was a pure business decision.

mf240

Sam Kade wrote: »

But there is more of the latter around, remember all the hype coming up to the end of quotas.

Cute hoors dont get excited by hype .

Next spring would be a great time for any suckler man thinking of making the change to jump.

frazzledhome

rangler1 wrote: »

and the parties...some people really hadn't a clue

Not related.

Quota good riddance 2c/litre better off here

Sam Kade

orm0nd wrote: »

1 year out of 30

what price would we'd be getting if the € was strong ?

Remember when you had to buy quota and fund it out of milk price

Dawggone

frazzledhome wrote: »

Not related.

Quota good riddance 2c/litre better off here

Dawggone

Sam Kade wrote: »

Remember when you had to buy quota and fund it out of milk price

orm0nd

Sam Kade wrote: »

Remember when you had to buy quota and fund it out of milk price

yep & would do it again if need be , also had a 5 year lease with land & got depopulated 6 months into it

got more tee shirts than the vast majority of other posters on here combined

frazzledhome

whelan2 wrote: »

at dg meeting today apparently only 10% of farmers are acheiving 450 kg/cow of milk solids per cow or 1260g ms /ha, i was also amazed at the very low figure who complete a profit monitor

Yield Doesn't equal profit. 2 very different things

frazzledhome

http://www.fwi.co.uk/business/dairy-farmers-offered-just-seven-p-a-litre-for-milk#.VaawEG7xr-J.twitter

stanflt

frazzledhome wrote: »

Yield Doesn't equal profit. 2 very different things

But you can have both😀

WheatenBriar

frazzledhome wrote: »

No where in my post did I disagree with any if what you posted. The reality is price is in the tank and we have to deal with it. Simple Simon et al are talking of EU interference, all that'll do is delay any recovery.

Again name a coop that's not subbing price ATM

you misunderstood my point fraz,there's a difference between subbing price from margin and subbing it from what is there to be disbursed to the co op member anyway because it's ours ie from co op funds,ie funds that are already the property of members
It's a bizarre slight of hand to be creating the illusion that the co op is helping us out because technically they are just robbing our Peter fund to pay our Paul fund whereas the co op's using their sales margin hit to pay suppliers more ,are using new money to do this not our money (yet)
That to my mind is the better way
Dipping into the shareholder pot if that margin is not there should be a last resort

Again on your point that we concentrate too much on base price when the real money to a limit ,the add on price if you will is to be made with better solids,my reaction was,since when does that invalidate a gripe that as whelan2 suggested we're really getting a base of 26,the top up is not coming from where other coop's get it (less margin) but from the co op's,the farmer members safe keeping area the co op itself

It's a bit like saying shop more in Aldi instead of Supervalu,you'll have more left over
Of course ... but you've a choice to do that and should be anyway ,however on base price other co op's are doing it fairer,more altruistically if you get me?

Blackgrass

frazzledhome wrote: »

Yield Doesn't equal profit. 2 very different things

Depends on your farm, level of attention to detail and knowing your economic margins and how far you can push it. If you've a field of promise foot to the floor if not then aim for average and spend FA.

frazzledhome

Blackgrass wrote: »

Depends on your farm, level of attention to detail and knowing your economic margins and how far you can push it. If you've a field of promise foot to the floor if not then aim for average and spend FA.

Agreed.

If a guy buys yield all he's doing is making profit for another and pauperising himself. It's the operator. As Stan said you can have both

Greengrass1

http://www.agriland.ie/farming-news/dairying-get-big-get-third-option/

freedominacup

Greengrass1 wrote: »

http://www.agriland.ie/farming-news/dairying-get-big-get-third-option/

Even a sole trader tradesman with one labourer/apprentice will need to be turning over 200k pa to give himself a decent income. Your average 70 cow farmer isn't getting within 30% of that and is probably working on his own in a system that is totally reliant on him being there a minimum of 70 hours per week. List off any other businesses you think have a viable long term future at this scale. Imo you need to be heading for 500k in the medium, 5-10 years, term to sustain a family farm in dairying. I'd love to know what the author considers himself to be worth salary wise for what sort of annual hours. I'd be very surprised if a 70 cow farm would sustain it for very long.

kowtow

Greengrass1 wrote: »

http://www.agriland.ie/farming-news/dairying-get-big-get-third-option/

Tragically as a country we are making the "third way" very difficult indeed. We are determined to produce a premium product - milk from grass - but we are determined to sell it as a dehydrated, homogeneous commodity.

We need to learn that we cannot have it both ways.

Dawggone

kowtow wrote: »

Tragically as a country we are making the "third way" very difficult indeed. We are determined to produce a premium product - milk from grass - but we are determined to sell it as a dehydrated, homogeneous commodity.

We need to learn that we cannot have it both ways.

+1.
A bit of vision is needed from the processors.
That may be a while coming as the processors will never have their backs to the wall...they will just pass the buck onto the suppliers lap.

alps

Dawggone wrote: »

+1.
A bit of vision is needed from the processors.
That may be a while coming as the processors will never have their backs to the wall...they will just pass the buck onto the suppliers lap.

There is no requirement on or incentive for the current processors to be inventive. As you correctly say, price of finished product is largely irrelevant when all the processor has to do is deduct it's costs and pass on the remainder. Now with most suppliers "signed in" , the current business model is very comfy for them indeed. It is stunning when you look at the praise and honour which has been bestowed on some of our industry leaders when all they have done is created bigger commodity vessels.
A new vision is not going to come from the current processors, it will come from small grouping of farmers who go their own way and search for a different outlet, through their own investment or with a new form processing/marketing.

kowtow

alps wrote: »

There is no requirement on or incentive for the current processors to be inventive. As you correctly say, price of finished product is largely irrelevant when all the processor has to do is deduct it's costs and pass on the remainder. Now with most suppliers "signed in" , the current business model is very comfy for them indeed. It is stunning when you look at the praise and honour which has been bestowed on some of our industry leaders when all they have done is created bigger commodity vessels.
A new vision is not going to come from the current processors, it will come from small grouping of farmers who go their own way and search for a different outlet, through their own investment or with a new form processing/marketing.

Nothing difficult at all about what the current processors have done - growing a terminal commodity business from a monopoly purchasing position is hardly rocket science, and if you can't make a success of it when you have investment capital (as well as milk) on tap from your supplier base you need either your head or your books examining carefully.

farmerjj

Any word on dg,s price, or is it a bit early yet?