Milk Price III

alps

Looks like German farmers are getting fed up of the poor payout of their Coop DMK.

The massive contract termination wave at the DMK of 1.7 billion kilograms forces Germany's largest dairy processor to shut down four plants. DMK GROUP is planning to streamline its production capacities with a new location concept. The cooperative reacts to the termination notes of milk producers and the resulting reduced quantities of milk, please find the entire article in German here.

Gonna try and post the link...its in German, but translates easily..

alps

https://www.agrarheute.com/dlz/news/dmk-kuendigungswelle-zwingt-werksschliessungen

alps

Copied this..thought it is interesting and looks like this Coop is trying to negotiate away from the recognised obligation to collect all of a members milk...interesting if coops here could try to get out of that same obligation.

" 94.1 per cent, the DMK representatives have overwhelmingly decided to reduce their obligation to give notice after termination from two to one year. This amendment to the Constitution had already been under discussion since 2016. The responsible parties hope to collect points in the ongoing test procedure of the Bundeskartellamt.

It now allows each member to reduce the two-year obligation to one year. This allows the terminator to market their milk elsewhere after 12 months. In return, the DMK's acceptance guarantee shall be voided by the Member for the period of such exemption. The DMK also pays the business credit for almost two years.

"A pioneering decision. The model of the cooperative is not an end-of-life model. With this halving of the obligation to act, the desired flexibility is implemented for a part of the members. Milk producers who want long-term protection for their company continue to have the option of a two-year delivery and acceptance guarantee, "says Heinz Korte, Chairman of the Supervisory Board."

Farmer Ed

Buford T. Justice V wrote: »

whelan2 wrote: »

Can you post a link to it, interesting times ahead with Glanbia suppliers being able to hand in theor notice from next January, the other table I posted says it all really. No fixed price or co-op support masking anything there

Here it is.

http://www.farmersjournal.ie/farmer-writes-glanbia-is-not-the-holy-land-294119

You'll have to input the reader code in the back of the journal to read it, or borrow it from someone not using their code if you're not a subscriber;)

We can’t all move to the milk price Holy Land of west Cork but there are credible alternatives out there that will poach some supply if we see another year of below-average performance.

Interesting end comment.

Thank God for competition.

jaymla627

whelan2 wrote: »

Can you post a link to it, interesting times ahead with Glanbia suppliers being able to hand in theor notice from next January, the other table I posted says it all really. No fixed price or co-op support masking anything there

If the amount of clapping seals at the recent vote was anything to go by I wouldn't bet on it, series dose of Stockholm syndrome among a vast % of suppliers, its like a farmer selling land every few years to get himself out of bother and telling himself everything's rosy but when the whole lot is sold what happens then, when the safety net of share spinouts finally runs dry god knows how low glanbia milk prices will standup to competitors

whelan2

jaymla627 wrote: »

If the amount of clapping seals at the recent vote was anything to go by I wouldn't bet on it, series dose of Stockholm syndrome among a vast % of suppliers, its like a farmer selling land every few years to get himself out of bother and telling himself everything's rosy but when the whole lot is sold what happens then, when the safety net of share spinouts finally runs dry god knows how low glanbia milk prices will standup to competitors

I know I have asked this before but what is the current strathroy price? People who have any inkling of moving are doing their research now.

Farmer Ed

whelan2 wrote: »

jaymla627 wrote: »

If the amount of clapping seals at the recent vote was anything to go by I wouldn't bet on it, series dose of Stockholm syndrome among a vast % of suppliers, its like a farmer selling land every few years to get himself out of bother and telling himself everything's rosy but when the whole lot is sold what happens then, when the safety net of share spinouts finally runs dry god knows how low glanbia milk prices will standup to competitors

I know I have asked this before but what is the current strathroy price? People who have any inkling of moving are doing their research now.

I've asked the same question but to be fair if the direction flow of farmers moving is anything to go by then I think its safe to assume it can't be that bad.

jaymla627

whelan2 wrote: »

I know I have asked this before but what is the current strathroy price? People who have any inkling of moving are doing their research now.

My biggest issue wouldn't even concern last years diabolical price, the fact we had it rammed down our throats by Bergin that Glanbia will only pay what the market returns seems to only work when price is on the floor, given the processing capacity glanbia have for butter they should be returning 36 cent plus for milk at the minute as unlike other co-ops they didn't use any funds last year to prop up price, even with smp on the floor with butter at over 6000 a ton after processing costs it should return 40 plus cent a litre

whelan2

Looking at my June 17 statement, I was in 6 fixed milk price schemes, everyone of them was lower than the June 17 price, how will this affect the kpmg table for 2017? I knew the risks when I signed up to these schemes, so not complaining about that

kowtow

whelan2 wrote:

Looking at my June 17 statement, I was in 6 fixed milk price schemes, everyone of them was lower than the June 17 price, how will this affect the kpmg table for 2017? I knew the risks when I signed up to these schemes, so not complaining about that

Presumably the Kpmg table should exclude all fixed schemes.

Farmer Ed

kowtow wrote: »

whelan2 wrote:

Looking at my June 17 statement, I was in 6 fixed milk price schemes, everyone of them was lower than the June 17 price, how will this affect the kpmg table for 2017? I knew the risks when I signed up to these schemes, so not complaining about that

Presumably the Kpmg table should exclude all fixed schemes.

Presumably it should? But does it? From what we have read here it can be very inconsistent when including quality bonuses ect. Even the use of the standard 3.6f and 3.3p is not always used when comparing milk price. Honestly I would be worried that fixed price have the potential to confuse the situation further .

mahoney_j

Farmer Ed wrote: »

Presumably it should? But does it? From what we have read here it can be very inconsistent when including quality bonuses ect. Even the use of the standard 3.6f and 3.3p is not always used when comparing milk price. Honestly I would be worried that fixed price have the potential to confuse the situation further .

Very very simple ,Kpmg audited figures should only include base milk price at 3.6 and 3.3 this shouldn't be hard to do just base price per litre forget about quality top ups ,scc bonuses ,gap schemes fixed schemes etc .
A lot of hearsay and speculation here still re certain coops paying ai bills etc can anyone confirm that ,personally don't believe it ,could be true though !!on strsthroy milk price shouldn't be too hard get it if a supplier has genuine intentions of moving a quick Google would get a phone number for them

alps

I suspect the Strathroy price is different for each grouping of suppliers.

I've seen a pricing mechanism that was weighted more heavily on fat% than we would normally be used to with our coops. The price was significantly ahead of Irish Coop prices, however a collection charge was applied, and this was dependent on distance, proximity of neighbouring farms, and ability to fill tankers at any given time of the year.

This was before the Wexford occurrence, so offerings may have changed significantly after this play. Lots of Strathroy milk going through North Cork Creameries at present.

Again, suppliers, particularly new start ups, will have their homework done for sure, and you would expect their financiers would have due diligence done also....but their is no reason why Strathroy, an independent, privately owned company should pay everyone the same price for their milk.

Farmer Ed

mahoney_j wrote: »

Farmer Ed wrote: »

Presumably it should? But does it? From what we have read here it can be very inconsistent when including quality bonuses ect. Even the use of the standard 3.6f and 3.3p is not always used when comparing milk price. Honestly I would be worried that fixed price have the potential to confuse the situation further .

Very very simple ,Kpmg audited figures should only include base milk price at 3.6 and 3.3 this shouldn't be hard to do just base price per litre forget about quality top ups ,scc bonuses ,gap schemes fixed schemes etc .
A lot of hearsay and speculation here still re certain coops paying ai bills etc can anyone confirm that ,personally don't believe it ,could be true though !!on strsthroy milk price shouldn't be too hard get it if a supplier has genuine intentions of moving a quick Google would get a phone number for them

Can't disagree with any of that except the more variable's you use when comparing milk price the easier it is for the PR experts to put a spin on those figures and totally confuse the situation. Don't buy the comic myself but my understanding is that the 2016 league was based on total payout and didn't compare like with like in terms of fat and protein. That's fair enough but there are two issues there. The fat and protein levels are not of the co ops making. Or is KMPG suggesting that in fact different co ops are testing their milk differently? If so that is a far more serious issue. Otherwise the league should compare like with like on 3.6f and 3.3p. Anything else just muddies the waters.

Farmer Ed

alps wrote: »

I suspect the Strathroy price is different for each grouping of suppliers.

I've seen a pricing mechanism that was weighted more heavily on fat% than we would normally be used to with our coops. The price was significantly ahead of Irish Coop prices, however a collection charge was applied, and this was dependent on distance, proximity of neighbouring farms, and ability to fill tankers at any given time of the year.

This was before the Wexford occurrence, so offerings may have changed significantly after this play. Lots of Strathroy milk going through North Cork Creameries at present.

Again, suppliers, particularly new start ups, will have their homework done for sure, and you would expect their financiers would have due diligence done also....but their is no reason why Strathroy, an independent, privately owned company should pay everyone the same price for their milk.

I suspect you have hit the nail on the head there with your explanation. Similarly with some of the other small players who we are led to believe actually are also ahead on price but won't take part in the milk price league. There are possibly a lot more reasons than meets the eye.

Injuryprone

Looks like your old coop are listening to you Ed!!

mf240

They could pay a bit more . I'm not worried what way they dress it up.

I'm not prepared to move so I make suck it up for now .

I've a feeling that well see 35/36 base before year is out.

Water John

Jam,according to the Irish Examiner yesterday, Glanbia use a ration of 2.3:1, protein to butterfat so they cannot be reflecting market price to the supplier.
Only Arla and Dairygold seem to be moving that way. Arla at 1.4:1.

whelan2

mf240 wrote: »

They could pay a bit more . I'm not worried what way they dress it up.

I'm not prepared to move so I make suck it up for now .

I've a feeling that well see 35/36 base before year is out.

So would you be prepared to sign another 5year msa with the lowest paying creamery in Europe?

mf240

whelan2 wrote: »

So would you be prepared to sign another 5year msa with the lowest paying creamery in Europe?

I'm not sure . Tbh .

Farmer Ed

Injuryprone wrote: »

Looks like your old coop are listening to you Ed!!

Glad to hear that. How is it when I pointed that anomaly here a lot of people got offended? That's great news, would love to see a situation where the milk price calculation formula actually tracked the actual returns from the market and not take months to catch up. Welcome news hopefully the rest of the flock will follow shortly.

cute geoge

What choice do small farmers have really if they don't sign a contract .
Would stratroy or any other co op go out of there way to pick up 2/3 k litres every couple of days ,it might be a different story if they were already passing your door

Water John

The suppliers of all processors, esp Coops, should demand that these longer term MSAs are no more. Their legality alone, is highly questionable.
It is clear from Coop Law and Principles that they are not needed. If you own shares, you supply, simple as.
As a contract, they are also totally one sided and thus oppressive, in nature.

Many coops have an annual one. Personnally, I could live with that. ICOS have put 90 day notice out there, don't agree with it, too long, but it's liveable.
Hand in your notice on 1st Dec. New processor supplied on the 1st March following.

Stand up and say no to longer term MSAs. Whether you actually intend moving or not, it's oppressive on all farmers.

Cute, I've seen farmers with 30 cows change processors. Three or four in an area makes it viable. Don't put yourself down.

Buford T. Justice XIX

Injuryprone wrote: »

Looks like your old coop are listening to you Ed!!

Mod Note:

Right folks, this stops now!

Use of a posters name simply isn't allowed. A poster can be banned for doing this and will be if this continues.

I'm not singling out Injuryprone for this, the rules applies to us all equally.

Any questions about this and any of you can PM one of the mods about it.

Buford T. Justice.

Farmer Ed

Sorry for repeating myself but any relationship that requires the door to be locked to prevent one party from leaving I have a problem with. If people are treated fairly and with a bit of respect they won't be going anywhere. But giving away any bit of bargaining power you have and swearing blind allegiance to anyone or any institution in my view is a big mistake. circumstances can change and we should all reserve the right to be allowed decide how we want the adapt to those changing circumstances.
Blind allegiance can place a person in a very vulnerable position.

Wildsurfer

Buford T. Justice V wrote: »

Mod Note:

Right folks, this stops now!

Use of a posters name simply isn't allowed. A poster can be banned for doing this and will be if this continues.

I'm not singling out Injuryprone for this, the rules applies to us all equally.

Any questions about this and any of you can PM one of the mods about it.

Buford T. Justice.

Hang on was he not referring to Farmer Ed?

Buford T. Justice XIX

Wildsurfer wrote: »

Hang on was he not referring to Farmer Ed?

Yes.

Any more questions, take it to PM, as per the rules.

Buford T. Justice.

Mooooo

Recieved 35.599c/L @ 3.52p and 3.83bf
dairygold 33c base., just over 10% of months supply fixed at 29.73 base

The part time boy

Wildsurfer wrote: »

Buford T. Justice V wrote: »

Mod Note:

Right folks, this stops now!

Use of a posters name simply isn't allowed. A poster can be banned for doing this and will be if this continues.

I'm not singling out Injuryprone for this, the rules applies to us all equally.

Any questions about this and any of you can PM one of the mods about it.

Buford T. Justice.

Hang on was he not referring to Farmer Ed?

I know where not meant to question mods but are we not allowed name a username in a post ???

This is not a smart comment as I have no idea of polites that's be going on here i am genuinely confussed

yewtree

Mooooo wrote: »

Recieved 35.599c/L @ 3.52p and 3.83bf
dairygold 33c base., just over 10% of months supply fixed at 29.73 base

4.25 fat 3.55 pr. 38.3 c/litre small bit fixed at 31 c/l. Base was 33.5 c/l and top price in coop was 47.15 c/litre