Milk Price III

rangler1

mf240 wrote: »

If it's semi skimmed its less than 2% fat so it would be also making butter .

I agree there is little or no corelation between farm gate price and shop shelf price.

That's business, and if you act the bowsy you'll neither have a supplier or a customer,

Buford T. Justice XIX

GDT down 0.4% today.

All products down, skim by 4.5%, bar BMP up 10.8% and WMP up 2.6%.

https://www.globaldairytrade.info/en/product-results/

Buford T. Justice XIX

hatrickpatrick wrote: »

Seeing as this has been in the news lately, out of interest how much would dairy farmers regard as a reasonable end-price in the supermarket, from their own point of view? I tend to buy semi skimmed "super milk" at e2 for a 1.75L carton (think this used to be 2L in the past but supermarkets have gone with shrinkflation, IE reduce product size rather than increase price) - is this reasonable for dairy farmers, and if not, in an ideal world how much would end-consumers be paying?

I would be happy enough with the end price for milk.

The problem lies with the massive markup applied by the middlemen in the supply chain, namely the supermarkets for the most part.

They get the majority of the retail price for just supplying the space for refrigeration of the milk. The electrical costs and colds stores are supplied, maintained and paid for and replaced by the milk suppliers. Add onto that the hugely advantageous credit terms of something like 3 months credit before they have to pay some 40c/l back to the processor.

EDIT
This BBC documentary give some context to the overall loss of power by primary producers in the food chain.

It gives you an idea of the power the major sellers have and nobody seems to want to do anything to redress the balance of power, other than to pay lip service to curing it.

Farmer Ed

Buford T. Justice V wrote: »

I would be happy enough with the end price for milk.

The problem lies with the massive markup applied by the middlemen in the supply chain, namely the supermarkets for the most part.

They get the majority of the retail price for just supplying the space for refrigeration of the milk. The electrical costs and colds stores are supplied, maintained and paid for and replaced by the milk suppliers. Add onto that the hugely advantageous credit terms of something like 3 months credit before they have to pay some 40c/l back to the processor.

EDIT
This BBC documentary give some context to the overall loss of power by primary producers in the food chain.

It gives you an idea of the power the major sellers have and nobody seems to want to do anything to redress the balance of power, other than to pay lip service to curing it.

+1000. That documentary should be compulsory viewing. Some may possibly even dismiss that view point as a conspiracy theory. But when presented with the cold hard facts, its hard to be dismissive.

whelan2

Mooooo wrote: »

You're the only one discussing it ed and tbh honest it's becoming so tiresome I don't bother looking at the thread most of the time your the last post on it. It drags the thread off topic with pages of ****e

As it is the milk price thread are we looking at another cent for June?

Buford T. Justice XIX

Mod Note:

Alright lads and lassies, this discussion has come to an end. The title of the thread is MILK PRICE!!

Any discussion of any other matters should be discussed in a different thread.

Let's all return to the discussion of pricing, shall we?

Thanks in advance.

Buford T. Justice

Buford T. Justice XIX

whelan2 wrote: »

As it is the milk price thread are we looking at another cent for June?

I was at a meeting on Wed night and there is room for another 1.5c to be paid easily. Especially now that butter is still scarce.

The odds are on another 1c for this month though and possibly holding for the rest of the year. The big producers in Europe and producing lower volumes and only Ireland and Poland, with a lot of imported Dutch cows:D, are producing significantly bigger volumes.

mahoney_j

Buford T. Justice V wrote: »

Mod Note:

Alright lads and lassies, this discussion has come to an end. The title of the thread is MILK PRICE!!

Any discussion of any other matters should be discussed in a different thread.

Let's all return to the discussion of pricing, shall we?

Thanks in advance.

Buford T. Justice

I bet u love keeping tabs on this thread '!!!!!

Farmer Ed

You would imagine that product mix of different processors would have a big bearing on it? Eg the processors who are able to capitalize on the current butter revival should be in a better position to pass that back?

Buford T. Justice XIX

mahoney_j wrote: »

I bet u love keeping tabs on this thread '!!!!!

It has its moments....

Farmer Ed

I suppose it just goes to prove that its not always necessary to pay someone vast amounts of money to do a challenging job.

jaymla627

Farmer Ed wrote: »

You would imagine that product mix of different processors would have a big bearing on it? Eg the processors who are able to capitalize on the current butter revival should be in a better position to pass that back?

Glanbia especially they're sending milk that should be going through belview to ballyragget for butter processing seems theirs no fortune to be made at the baby powder craic but its mind-boggling why another dryer is going up down their to produce wmp that returns no margin to the farmer

Farmer Ed

jaymla627 wrote: »

Farmer Ed wrote: »

You would imagine that product mix of different processors would have a big bearing on it? Eg the processors who are able to capitalize on the current butter revival should be in a better position to pass that back?

Glanbia especially they're sending milk that should be going through belview to ballyragget for butter processing seems theirs no fortune to be made at the baby powder craic but its mind-boggling why another dryer is going up down their to produce wmp that returns no margin to the farmer

Very difficult to predict the future, but it would certainly seem that grass fed butter is back with a bang. Seems to me there is almost a reluctance to examine to possibility that this is not just a passing fad as most of the investment as you have rightly pointed out is still focusing on other areas and fat is still being valued at 2 and a half times less than protein when calculating our milk price.
Butter at €6000 a ton at 80% fat is the equivalent of €7.20 per kg as the wholesale price of fat.

Farmer Ed

Actually if you do a quick calculation .€6000 per ton or €7.20 per kg for butter fat, is the equivalent of almost 26 c per l at a modest 3.6f before processing costs just for the fat portion of the milk alone. Add to that the valve that can be returned from the protein part of the milk and you have to imagine there is room for a good June price increase.

atlantic mist

jaymla627 wrote: »

Glanbia especially they're sending milk that should be going through belview to ballyragget for butter processing seems theirs no fortune to be made at the baby powder craic but its mind-boggling why another dryer is going up down their to produce wmp that returns no margin to the farmer

fully agree no financial sense to second dryer but the line from processor is that they have agreed to process all our raw materials and what easier way to do that then a drier where they have the eu intervention store as a guaranteed customer, the processor must still keep their margin so it makes little difference to them what product mix they have, during peak milk driers will be full tilt and probable one turned off for rest of the year

wonder would it make sense for me to have two bulk tanks for peak, one which can be left used for remaining 9/10 months of year, id save on electricity if nothing else

wouldnt mind a second drier if they could produce an irish/glanbia branded baby formula instead of giving our powder to international companies to profit on, what i cant figure out is how kerry are supplying danone in wexford for baby formula the lorries are driving past belview, our lads hadnt even the ground work done with infant processors manufacturers prior to first drier being commissioned and currently still dont, well keep that nigerian rep busy if nigerian inflation hasnt ruined him already

Farmer Ed

atlantic mist wrote: »

jaymla627 wrote: »

Glanbia especially they're sending milk that should be going through belview to ballyragget for butter processing seems theirs no fortune to be made at the baby powder craic but its mind-boggling why another dryer is going up down their to produce wmp that returns no margin to the farmer

fully agree no financial sense to second dryer but the line from processor is that they have agreed to process all our raw materials and what easier way to do that then a drier where they have the eu intervention store as a guaranteed customer, the processor must still keep their margin so it makes little difference to them what product mix they have, during peak milk driers will be full tilt and probable one turned off for rest of the year

wonder would it make sense for me to have two bulk tanks for peak, one which can be left used for remaining 9/10 months of year, id save on electricity if nothing else

wouldnt mind a second drier if they could produce an irish/glanbia branded baby formula instead of giving our powder to international companies to profit on, what i cant figure out is how kerry are supplying danone in wexford for baby formula the lorries are driving past belview, our lads hadnt even the ground work done with infant processors manufacturers prior to first drier being commissioned and currently still dont, well keep that nigerian rep busy if nigerian inflation hasnt ruined him already

I suppose part if the answer to that is that in spite of what we are led to believe a high percentage of the ingredients in baby milk formula is not of dairy origin at all. The idea that dryers were being built to make infant formula was kind of stretching things a bit. At best they can make raw ingredients to be used in the manufacturer of infant formula.

But interesting times. At the rate markets are changing what is in demand now may not be in demand next year. So I suppose there is a case for processors having the ability to adapt to the markets. The processor will always take the processing margin regardless. Our milk price is decided on the processors ability to add value to our milk key to that surely is being able to make the right calls with regards to market trends.

jaymla627

atlantic mist wrote: »

fully agree no financial sense to second dryer but the line from processor is that they have agreed to process all our raw materials and what easier way to do that then a drier where they have the eu intervention store as a guaranteed customer, the processor must still keep their margin so it makes little difference to them what product mix they have, during peak milk driers will be full tilt and probable one turned off for rest of the year

wonder would it make sense for me to have two bulk tanks for peak, one which can be left used for remaining 9/10 months of year, id save on electricity if nothing else

wouldnt mind a second drier if they could produce an irish/glanbia branded baby formula instead of giving our powder to international companies to profit on, what i cant figure out is how kerry are supplying danone in wexford for baby formula the lorries are driving past belview, our lads hadnt even the ground work done with infant processors manufacturers prior to first drier being commissioned and currently still dont, well keep that nigerian rep busy if nigerian inflation hasnt ruined him already

Will get lynched for saying this but why cant they simply incentivise milk produced on the shoulders of the year and flatten out supply, even the kiwis are trying to get away from the commodity powder markets, all the money been pumped into these dryers for 3-4 weeks peak milk is Ludacris, and what's the plan if milk output exceeds their predictions going forward is it simply to keep dropping a 100million plus every 18 months on a new dryer its baffling

mf240

jaymla627 wrote: »

Will get lynched for saying this but why cant they simply incentivise milk produced on the shoulders of the year and flatten out supply, even the kiwis are trying to get away from the commodity powder markets, all the money been pumped into these dryers for 3-4 weeks peak milk is Ludacris, and what's the plan if milk output exceeds their predictions going forward is it simply to keep dropping a 100million plus every 18 months on a new dryer its baffling

There giving a bit extra for Jan and Feb milk to try to encourage earlier calving (possibly help a little.)

Buford T. Justice XIX

Mod note:

Dairygold discussion thread now opened, as requested, and we have moved the last few days of discussion over to that thread. It's not the finished item as yet as we have to prune a few posts but again we would request that posters attack the post and not the poster!

http://www.boards.ie/vbulletin/showthread.php?t=2057761344#

Thanks for your patience in getting this sorted.

Buford T. Justice.

K.G.

I found the stats on winter/spring coefficent milk supply interesting in the kpmg.couldnt see a trend due to location do it must be more about tradtion

Farmer Ed

http://www.agriland.ie/farming-news/ifa-calls-for-a-2cl-milk-price-increase-on-world-milk-day/

IFA looking for a 2 cent rise.

Farmer Ed

http://www.farmersjournal.ie/could-there-be-a-butter-shortage-before-christmas-291673#.WWEmabCz6-4.facebook

If this is correct, things could really be looking up? No sign of a butter bubble according to this guy, more like a butter shortage! Good news hopefully?

Farmer Ed

Here is an interesting one. Tesco butter, producer number IE 1022, Glanbia. Tesco cheddar producer number UK 002, Kerrygold ,Staffordshire, UK ?

Possibly Irish cheese??? But being sliced and diced in the UK by Ornua ???? Strange one ?

CowMeister

Lakeland Dairies up 1 cent to 33

Farmer Ed

CowMeister wrote: »

Lakeland Dairies up 1 cent to 33

While obviously any increase is welcome, there was talk on here of a 1.5c increase. IFA have even said 2c should be available. I wonder can more of an increase be expected for July?

whelan2

Farmer Ed wrote: »

While obviously any increase is welcome, there was talk on here of a 1.5c increase. IFA have even said 2c should be available. I wonder can more of an increase be expected for July?

Someone toldme the other day 3 cent increase was justified. 1 cpl is a long way off that. I assume all the other sheep Will follow with 1 cent

Farmer Ed

whelan2 wrote: »

Farmer Ed wrote: »

While obviously any increase is welcome, there was talk on here of a 1.5c increase. IFA have even said 2c should be available. I wonder can more of an increase be expected for July?

Someone toldme the other day 3 cent increase was justified. 1 cpl is a long way off that. I assume all the other sheep Will follow with 1 cent

I'm afraid you could be right on the mark there. There normally dance in tune.

alps

There has been no pressure for a price increase from farmers.....

If you want one...you gotta pressurise....

mahoney_j

alps wrote: »

There has been no pressure for a price increase from farmers.....

If you want one...you gotta pressurise....

+1 a lot of farmers are great at talking and whinging on places like here etc but are like sheep or headless chickens when it comes to meetings or talking to board members

Farmer Ed

mahoney_j wrote: »

alps wrote: »

There has been no pressure for a price increase from farmers.....

If you want one...you gotta pressurise....

+1 a lot of farmers are great at talking and whinging on places like here etc but are like sheep or headless chickens when it comes to meetings or talking to board members

I thought your man in Nigeria used to follow the happenings on boards? Plus the IFA and ICMSA have both said we should get a bigger price increase. But it would appear their request will not be listened to or at least not in full. Plus as board members are mostly farmers themselves you'd imagine they would collectively have the balls to look for an increase without having to hold their hand and point out the obvious to them at every twist and turn. And sure if no one follows boards as you suggest, its all only a bit of harmless fun, so no need to stress over it.