Milk Price III

jaymla627

mf240 wrote: »

I see in the journal somewhere that glanbias new plant will be at capacity in the next 18 months .

It will be at capacity for may/june if the weather plays ball at all, the renewal of the kerry patnership and their close ties with lakeland mean the world of milk from glanbia plants will go through these channels, lakelands new dryer will be taking alot of glanbia milk at peak

Water John

They also have DG in Mitchelstown and Mallow. Plenty options without rushing out to build more plant.
Last round of this both Glanbia and DG suppliers paid for it through lower milk prices when those were tanking.

alps

FrieslandCampina have just announced an increase in milk price to 33.83 excluding vat (irish constituents). This is a staggering performance, when one realises that this is just the minimum guaranteed price and that there will be a top up payment at the end of the year equaling 35% of the company's profits. On top of this a further 10% of coop profits will be added to the farmers interest bearing bond a a pension type payment.

The company structure is fantastic...simple in its design, and focused on returning the maximum to the litre of milk, as in the words of their Chairman, Frans Keurentjes, it was the litre of milk put the profit there in the first place.

I had the pleasure of attending a meeting a week ago , where he gave the detailed presentation of the company structure.

Quiet simply, the company handles all product from farm to the shop shelf ( with of course some B to but takes every product as far up the chain as possible. It pays a guaranteed minimum price monthly, which is based on the average milk price in Northern mainland Europe.

The company's profits are then split at year end, 55% retained by the coop, and 45% to the suppliers on a per litre supplied basis. 35% is payed out as a 13th payment, last year equating to over 30,000 per supplier and 10% is paid tax free into the farmers interest bearing bond fund, which is there for his retirement from farming.

Pure class

OverRide

Meanwhile I hear Strathroy are planning a processing facility in the Republic
I have no other details yet

mf240

OverRide wrote: »

Meanwhile I hear Strathroy are planning a processing facility in the Republic
I have no other details yet

That's great news.

Buford T. Justice XIX

OverRide wrote: »

Meanwhile I hear Strathroy are planning a processing facility in the Republic
I have no other details yet

That's only in case of a hard Brexit, iirc.

blackdog1

Any Dairygold suppliers going to sign up to new fixed scheme? 30.75 c including vat for 2017,18,19

Mooooo

blackdog1 wrote: »

Any Dairygold suppliers going to sign up to new fixed scheme? 30.75 c including vat for 2017,18,19

Hadn't heard of it yet. Depends on details percentages etc. Current scheme wasnt paid in Dec or Jan which for those of us that milk year round was less advantageous. Seems a bit long for that figure

wats the craic

OverRide wrote: »

Meanwhile I hear Strathroy are planning a processing facility in the Republic
I have no other details yet

thats only in the worst case . but as rory cunnigham said at meeting awhile back they could not keep the border closed at the height of the troubles and they wont be able to that now . i say they are flying a kite to put the fear of god in to some coops in the south

Water John

I suspect keeping all options open as long as possible.
Always a good business strategy, run a few models until decision day.

Farmer Ed

Hear that the milk tanks in a new Cork milk drying facility are leaking badly and the leaking milk has been drawn away and land spread last year.. Anyway tanks have been surveyed and found not to be repairable because made from the wrong grade of stainless steel. Company who made the tanks have gone out of business so advice is they have to be replaced and the farmer will have to pay for new tanks or risk drawing the spillage away by slurry tank again for the coming year. Just as long as the epa don't find out.

Wildsurfer

blackdog1 wrote: »

Any Dairygold suppliers going to sign up to new fixed scheme? 30.75 c including vat for 2017,18,19

Milk in low twenties a few months ago and you ask if we will take a guaranteed base price above 30cent? A no brainier if you ask me. Only negative is its only a max 10% that can be fixed. Prospects for milk are only looking good for first 6-8 months of this year... Lots of uncertainty again after that. Then again I have repayments to make.. If you were debt free you could throw the dice.

C4d78

blackdog1 wrote: »

Any Dairygold suppliers going to sign up to new fixed scheme? 30.75 c including vat for 2017,18,19

I don't know really. Anybody know the average base price over the last 3 year period??
I know Jim Wolfe made reference to it at area meetings. If I recall he mentioned a 3 year avg of 31. Not sure if this was co-op avg or base avg however.

Water John

I think he said base avg of 31 cent over 7 years. That is, prior to the last plummet.
All should go much better now, with Dairygold named business of the year by Cork Chamber of Commerce!!!

mahoney_j

Anyone opinions on the arrabawn fixed contract ???,30.6 cent vat inc vat standard solids for 3 years from March 1 .initally option is to fix 10% of 2016 supply with option to fix more depending on uptake .price seems on a par with what others are offering .personally would of liked at 31 or over but over 3 years probably about right .no brainer for me so I'm fixing 10% and will go with option of fixing a further 10%

Buford T. Justice XIX

mahoney_j wrote: »

Anyone opinions on the arrabawn fixed contract ???,30.6 cent vat inc vat standard solids for 3 years from March 1 .initally option is to fix 10% of 2016 supply with option to fix more depending on uptake .price seems on a par with what others are offering .personally would of liked at 31 or over but over 3 years probably about right .no brainer for me so I'm fixing 10% and will go with option of fixing a further 10%

Will that increase with higher solids and are standard bonuses included, J?

blackdog1

mahoney_j wrote:

Anyone opinions on the arrabawn fixed contract ???,30.6 cent vat inc vat standard solids for 3 years from March 1 .initally option is to fix 10% of 2016 supply with option to fix more depending on uptake .price seems on a par with what others are offering .personally would of liked at 31 or over but over 3 years probably about right .no brainer for me so I'm fixing 10% and will go with option of fixing a further 10%

I'm of mixed opinion. I recon this year prices will rise next year they'll hold and the 3rd year they might drop. I don't like doing deals when prices are low. The last fixed was a no brainer. This one I'm not so sure.

kevthegaff

mahoney_j wrote:

Anyone opinions on the arrabawn fixed contract ???,30.6 cent vat inc vat standard solids for 3 years from March 1 .initally option is to fix 10% of 2016 supply with option to fix more depending on uptake .price seems on a par with what others are offering .personally would of liked at 31 or over but over 3 years probably about right .no brainer for me so I'm fixing 10% and will go with option of fixing a further 10%

I won't I'd say

mahoney_j

Buford T. Justice V wrote: »

Will that increase with higher solids and are standard bonuses included, J?

Yes for both I think but waiting for confirmation

mahoney_j

blackdog1 wrote: »

I'm of mixed opinion. I recon this year prices will rise next year they'll hold and the 3rd year they might drop. I don't like doing deals when prices are low. The last fixed was a no brainer. This one I'm not so sure.

So over next 3 years where do u see milk price averaging out ??,whole thing very volatile ,this year should be very good but after that who knows ,for sure there will be ups and downs ,fixed scheme provides insulation

mahoney_j

kevthegaff wrote: »

I won't I'd say

Price /quantity to fix not to your liking Kev

kevthegaff

mahoney_j wrote:

Price /quantity to fix not to your liking Kev

This year is looking good as u say. After knocking fixed price schemes, I better keep to my principles for the time being;-)

freedominacup

kevthegaff wrote: »

This year is looking good as u say. After knocking fixed price schemes, I better keep to my principles for the time being;-)

I've knocked them as much as anyone but that scheme you know what you're signing up for in term of volume. You aren't applying for 30 hoping to get 10 and worrying that you could end up committing more than you want. It has that much going for it at least.

blackdog1

mahoney_j wrote:

So over next 3 years where do u see milk price averaging out ??,whole thing very volatile ,this year should be very good but after that who knows ,for sure there will be ups and downs ,fixed scheme provides insulation

I agree I once did a project in college about what happens to the property market after a collapse and how long it takes to recover. Turned out it was 9 years which looks like it might come true. On this I thought with the quota we were in 6 year cycles but without it I was halving it to 3. It really depends on oil prices. I think oil prices will rise for the next 3 years so I think price will be stable with a few dips depending on over supply. The question what price do you think will be the average over the next 3 years.... I don't know. I'm 50/50 to sign up. At 30c now I can make money but what happens if feed and fert prices go up.

mahoney_j

Buford T. Justice V wrote: »

Will that increase with higher solids and are standard bonuses included, J?

Just confirmed if sokids over 3.6/3.3 it's 30.6 plus solids .additional bonus for quality ,scc etc are included but if u don't meet them it comes off fixed price

Buford T. Justice XIX

mahoney_j wrote: »

Just confirmed if sokids over 3.6/3.3 it's 30.6 plus solids .additional bonus for quality ,scc etc are included but if u don't meet them it comes off fixed price

It's not looking a bad price so, imo.

orm0nd

mahoney_j wrote: »

Anyone opinions on the arrabawn fixed contract ???,30.6 cent vat inc vat standard solids for 3 years from March 1 .initally option is to fix 10% of 2016 supply with option to fix more depending on uptake .price seems on a par with what others are offering .personally would of liked at 31 or over but over 3 years probably about right .no brainer for me so I'm fixing 10% and will go with option of fixing a further 10%

thought about it & decided we're not going for it,

kowtow

kevthegaff wrote: »

This year is looking good as u say. After knocking fixed price schemes, I better keep to my principles for the time being;-)

Principles can be very expensive, you should always be prepared to change them!

White Clover

kowtow wrote: »

Principles can be very expensive, you should always be prepared to change them!

Coops and meat factories are very principled....

Sillycave

blackdog1 wrote: »

I agree I once did a project in college about what happens to the property market after a collapse and how long it takes to recover. Turned out it was 9 years which looks like it might come true. On this I thought with the quota we were in 6 year cycles but without it I was halving it to 3. It really depends on oil prices. I think oil prices will rise for the next 3 years so I think price will be stable with a few dips depending on over supply. The question what price do you think will be the average over the next 3 years.... I don't know. I'm 50/50 to sign up. At 30c now I can make money but what happens if feed and fert prices go up.

Will feed and fert follow milk price and if so which follows which!!!
Probably does as milk price has risen so too has fert, will feed follow soon?
What would happen if feed and fert rose but milk price dropped?
Aside from that 30.6c per litre is a hell of alot better that the 22c per litre last year and it should provide some little bit of insulation should prices fall