milk price rises why are they lagging behind

mf240

Why are milk prices not rising faster in the creameries when the world market is so strong and farmers are under such strain in Ireland. Glanbia are said to be passing on an increase to the supermarkets of ten cent a litre,

Milk should be at least 40 cent IMHO, they slash it at the slightest rumour of a down turn globally, but when it increases globally they drag their heels.

Get on to your local board member get the increase before the peak is over in a few months and we might be able to make a hole in these feed bills.

mahoney_j

Whilst i would love a price of 40 cent a litre,I would be a tad worried if it got there.We are in the midst of a market peak at the moment and i for one am worried as to how low the next trough will be.Could we be looking at a price in the low to m id twenties next year???.What i would like to see is our coop boards looking at some innovatie ways of retaining some of the current price to protect against the next market drop.Im an arrabawn supplier and our ccurrent price is 35 and i reckon it should be at least 1 to 2 cent higher.Farmers on the ground havnt a hope in hell even with current strong prices of retaining any profit for the forseable future due to current weather and fodder issues.

mf240

Thats what they want you to think that there somehow doing you a favour by not allowing it to go to 40cent.

When the dip comes it will be passed on in full.

Farmers need 40 cent a litre and they need it now.

mf240

[QUOTE=mahoney_j;84365089.Farmers on the ground havnt a hope in hell even with current strong prices of retaining any profit for the forseable future due to current weather and fodder issues.[/QUOTE]

Even less chance when 12.5% of the value of our milk is not being passed on,incase we lose the run of ourselves and manage,( in spite of a diet of rushes, clay,water dairy nuts, imported hay and airport clippings) manage to squezz so much extra milk out of our cows that we flood the world with milk.

delaval

I agree with both of you 40c needed now, however if as Mahoney suggests that co-op's be prudent and can help next year when milk drops (it will) I would be happy to stay below 40 but my faith in them is not solid. They as mf suggests revert to type and drop before world price drops and rise well after in lifts. The aaverage co-op price at the moment should be 38c/litre.
Glanbia's fixed price is a good scheme as it is indexed linked however I feel the base is too low. I think they have miscalculated the need for cash now on farms and thus the quntities committed are low.
Unfortunatly this price rise is based on laack of supply NZ Aus US etc not on the back of major consumption.
I think that the days of the low 20 are over the new 22 is 29-30 IMO. If you study price patterns the trend is up with the peaks and troughs higher and lower and also closer together.
I was at the races on friday and among our group was an international feed purchaser and his take is that feed will drop €50 a tonne this summer and drop maybe double this if they get any drop of rain in the US for their crops.

I would be really interested in Kowtow's perspective.

Blue Holland

I reckon feed price will be back at least 50 euro a tonne but this is not good for Irish dairy farmers as it will drive milk production in US. Forward price on offer at min for harvest 2013 is bout 40 euro back on price last harvest.

jomoloney

mahoney_j wrote: »

Whilst i would love a price of 40 cent a litre,I would be a tad worried if it got there.We are in the midst of a market peak at the moment and i for one am worried as to how low the next trough will be.Could we be looking at a price in the low to m id twenties next year???.What i would like to see is our coop boards looking at some innovatie ways of retaining some of the current price to protect against the next market drop.Im an arrabawn supplier and our ccurrent price is 35 and i reckon it should be at least 1 to 2 cent higher.Farmers on the ground havnt a hope in hell even with current strong prices of retaining any profit for the forseable future due to current weather and fodder issues.

I'm arrabawn too, they are always last to lift the price and first to cut it, are very weak payers since the merger TBH I can't see it hitting 40, after ryan's statement, and talks of 27 ish down the road, don't know how long the road is though

stanflt

town of monaghan 37 for april

glanbia 36c:mad:

whelan1

stanflt wrote: »

town of monaghan 37 for april

glanbia 36c:mad:

ah but 1c of that is a hardship fund, will that have to be repaid?

mf240

stanflt wrote: »

town of monaghan 37 for april

glanbia 36c:mad:

Glanbia 35 stan and a 1 cent a litre (tokenism) Hardship bonus.

Why is it not 40 cent . It should be.