Who to supply

alps

Was approached during the weekend by a young lad starting as a new entrant into spring milk production next spring. Capable experienced young man who will make a great go of it, but one of the key issues yet to sort out.....who to supply.
I'm not going into identity or location, but safe to say he is in the catchment of Arrabawn, Dairygold, glanbia....even Strathroy. ....
We all have our own baggage with our own or other processors.....but thinking with a clear slate and the long term future in mind ....who would you approach with your supply?

Milked out

What he needs to do really is to go to each potential processor and ask them what he needs to do and what their own plans are for the future, be that limited expansion, supply curves and the bonuses penalties, share ups etc. We'll all find fault and positives with our own coops but he needs a to find all that info out first and then get the opinion of suppliers of each if he wants then.

kowtow

And maybe with things still bedding down post-quota he should choose the processor who doesn't make him sign an MSA, or at the very least lets him sign one which isn't too onerous.

Flexibility might turn out to be his best friend.

Greengrass1

kowtow wrote: »

And maybe with things still bedding down post-quota he should choose the processor who doesn't make him sign an MSA, or at the very least lets him sign one which isn't too onerous.

Flexibility might turn out to be his best friend.

Is thst not the reason why English processors have such variation in prices?
From 18 ppl to 27 ppl.
Suppliers wouldn't put faith in one coop so coops aren't going to be vert loyal with mp? ?

kowtow

Greengrass1 wrote: »

Is thst not the reason why English processors have such variation in prices?
From 18 ppl to 27 ppl.
Suppliers wouldn't put faith in one coop so coops aren't going to be vert loyal with mp? ?

If a co-op is doing it's basic job it's suppliers are getting the price the co-op gets, less minimal costs. It is an agent.

A co-op can't be "loyal" with a milk price and pay more unless it takes the money from someone else - a non-contracted supplier perhaps - which is where it begins to depart from the original purpose of a co-operative.

If everyone is "loyal" then they are all going to get the lowest price anyway.

trixi2011

Greengrass1 wrote: »

Is thst not the reason why English processors have such variation in prices?
From 18 ppl to 27 ppl.
Suppliers wouldn't put faith in one coop so coops aren't going to be vert loyal with mp? ?

Would you believe the variation would be more like from 15p to 33p

Panch18

Got 30.4 from glanbia for September, which is grand

Good solids is the key

Milked out

Panch18 wrote: »

Got 30.4 from glanbia for September, which is grand

Good solids is the key

How far above base will your solids be during peak supply months? That's when low milk price hits hardest

Brown Podzol

It would seem that Strathroy are a no brainier if you take it that the processor that can return the highest price is the processor that sells most of its product into the domestic market and less or none onto the international milk powder/commodity market.

milkprofit

Brown Podzol wrote: »

It would seem that Strathroy are a no brainier if you take it that the processor that can return the highest price is the processor that sells most of its product into the domestic market and less or none onto the international milk powder/commodity market.

I am told strathroy paying 4 c more than GlAnbia at the moment that's at least 10000e for 50 cows

Panch18

milkprofit wrote: »

I am told strathroy paying 4 c more than GlAnbia at the moment that's at least 10000e for 50 cows

Above glanbia's base or what?? Do strathriw give a bonus for solids?? If not we are still better off at Glanbia

Also the strathrow model is not scale able, we export 90% of milk produced, the domestic market is just not big enough

alps

Panch18 wrote: »

Above glanbia's base or what?? Do strathriw give a bonus for solids?? If not we are still better off at Glanbia

Also the strathrow model is not scale able, we export 90% of milk produced, the domestic market is just not big enough

Big market on the "mainland" for Strathroy......

alps

Apologies...shouldn't have thrown in the argument there...only fishing for facts about most appropriate processor to supply for someone starting out.
From what I know Strathroy pay a bonus on fat, but some of their suppliers might be able to enlighten us...maybe they pay different rates to different people. Met them over 2 years ago and they offered average of the top 3 in the farmers journal milk league plus 3c/l plus fat bonus minus collection cost. Be interesting how the price is made up now?