Milk Price III

Water John

Well we're comparing Avg EU to Avg Irl. This means those in Div 3 in IFJ, incl main players Glanbia and Kerry are well over 2 cent shy of the AVG EU.

The top players WC4 are paying about 33c which is still, I would guess .5 cent shy approx.
As the ICMSA said today, this is for milk from grass grazed cows, which get a premium in other countries. It is our base production method.

BOK is right, the skim would pay the Glanbia price. Where is the fat?

alps

Might give a more accurate impression

whelan2

alps wrote: »

Might give a more accurate impression

Glanbia the lowest payers on a 12 month average

Water John

The rolling avg gap and Glanbia is heading for 3 cent there, Alps. Worse than greater than the over 2 cent I had figured.
that pitches it to about €8,300 for a 300K litre producer.
A 100 cow herd difference is €16,600 per year!!!

Lets put the real figures, which farmers are being ripped off for, out there.
That would cover a lot of a wage, that would make life easier for the overworked farmer. Close to criminal IMO.

Farmer Ed

Water John wrote: »

The rolling avg gap and Glanbia is heading for 3 cent there, Alps. Worse than greater than the over 2 cent I had figured.
that pitches it to about €8,300 for a 300K litre producer.
A 100 cow herd difference is €16,600 per year!!!

Lets put the real figures, which farmers are being ripped off for, out there.
That would cover a lot of a wage, that would make life easier for the overworked farmer. Close to criminal IMO.

Ah but ,Ah but, we have farmer owned co ops! They will always put our interests first! Isn't that why we pay our management and bord members so well! For these Nobel people its like a vocation! Just like the nuns or the Guards or any of our great institutions! How could anything possibly be wrong! That European chart doesn't take in to account the money that farmers can get from sitting on boards and the like! Very disrespectful to be even discussing this!

alps

There are reasons why there are such differences. I don't believe it has anything to do with payment levels of management or board members.

Looking at the price difference between our own coops, it is plain to see that the smaller set ups seem to be able to return a better price than the larger ones. Maybe there is a "dumping product" element necessary with the larger milk pools when product price is low and markets over supplied?

But quiet obvious for me, and it's not shown on this table, is that in each of the countries above, the payment level for milk follows and in most cases exactkynmatches the cost if production.

Either...

The marketing strategy of management is lazy to the point that it only just achieves what is necessary to keep their institutions solvent, while maintaining their own pay levels...

The markets will only ever return just about enough maintain supply...

Or farmers will always find a way in their production methods to spend all of the money that their market returns...

If Irish milk eventually returns a higher value for its grass based, environmentally friendly production methods and returned say 50c/l, how long before it would be before COP would be 50c

Farmer Ed

You sad it, " The marketing strategy of management is lazy". Hardly a reason for paying them too much?

kowtow

alps wrote: »

But quiet obvious for me, and it's not shown on this table, is that in each of the countries above, the payment level for milk follows and in most cases exactkynmatches the cost if production.

If there was any kind of a shortage of milk, we wouldn't be producing milk powder!

I would guess that the higher prices in that table - which I haven''t looked at in detail - are those where a relatively high proportion of output is taken by local liquid milk and manufacturing markets (high value cheese for example).

The lower end is the marginal end, where almost all milk produced is actually excess milk which gets turned into powder - albeit a limited amount goes in "premium" powder or manufacturing products such as baby milk.

I think we sometimes elevate milk powder here above it's station... in countries where it is purchased, it tends not to be a staple food. It might well be a growing market, particularly as a sort of stepping stone if overall dairy consumption is increasing and local production has yet to step up - but with limited exceptions I don't think milk powder markets are capable of the same kind of shortages, and hence higher prices, that liquid markets are.

As long as milk powder is the natural consequence of the oversupply of liquid milk it will obviously be the cheaper product, hence the shape of those milk price tables.

Farmer Ed

kowtow wrote: »

alps wrote: »

But quiet obvious for me, and it's not shown on this table, is that in each of the countries above, the payment level for milk follows and in most cases exactkynmatches the cost if production.

If there was any kind of a shortage of milk, we wouldn't be producing milk powder!

I would guess that the higher prices in that table - which I haven''t looked at in detail - are those where a relatively high proportion of output is taken by local liquid milk and manufacturing markets (high value cheese for example).

The lower end is the marginal end, where almost all milk produced is actually excess milk which gets turned into powder - albeit a limited amount goes in "premium" powder or manufacturing products such as baby milk.

I think we sometimes elevate milk powder here above it's station... in countries where it is purchased, it tends not to be a staple food. It might well be a growing market, particularly as a sort of stepping stone if overall dairy consumption is increasing and local production has yet to step up - but with limited exceptions I don't think milk powder markets are capable of the same kind of shortages, and hence higher prices, that liquid markets are.

As long as milk powder is the natural consequence of the oversupply of liquid milk it will obviously be the cheaper product, hence the shape of those milk price tables.

Ah but didn't you know we have been building magical Dryer's? They can make infant milk formula! Remarkable achievement seeing as 50% of the ingredients of IMF is not even dairy based! But as long as people believe these dryers are special that's all that matters I suppose.

whelan2

Are we looking at an increase in price for July milk?

milkprofit

Farmer Ed wrote: »

Well the Germans seam to have a different take on it and the very fact that the Irish competition authority did claim to have investigated the Irish MSAs would indicate that they must have some jurisdiction in this particular area. So I'd be very surprised if it is legal to force a farmer to sell milk to a cartel either. Would seam the Germans are thinking along similar lines.

Would love to see Europe shine a light on the performance of our national outfit. Even our gang have been know to do uturns in the past so their obviously not infallible.

Send a sobmission to Phil Hogan

Farmer Ed

milkprofit wrote: »

Farmer Ed wrote: »

Well the Germans seam to have a different take on it and the very fact that the Irish competition authority did claim to have investigated the Irish MSAs would indicate that they must have some jurisdiction in this particular area. So I'd be very surprised if it is legal to force a farmer to sell milk to a cartel either. Would seam the Germans are thinking along similar lines.

Would love to see Europe shine a light on the performance of our national outfit. Even our gang have been know to do uturns in the past so their obviously not infallible.

Send a sobmission to Phil Hogan

I suspect the farm organizations will be doing that?

Gawddawggonnit

US maize and soya harvest has been upgraded to possibly being in the top three ever. Coupled with a softer dollar to further boost their exports, are we looking at milk price taking a hit?

Stronger Euro won't help us either...

mahoney_j

Gawddawggonnit wrote: »

US maize and soya harvest has been upgraded to possibly being in the top three ever. Coupled with a softer dollar to further boost their exports, are we looking at milk price taking a hit?

Weaker Euro won't help us either...

Come on dwag #grasstomilk ,cows out grazing and our big advantage from both ..........!!!!

Gawddawggonnit

mahoney_j wrote: »

Come on dwag #grasstomilk ,cows out grazing and our big advantage from both ..........!!!!

Indeed Mahoney....

Out of interest, has any product been shifted out of intervention?

mahoney_j

Gawddawggonnit wrote: »

Indeed Mahoney....

Out of interest, has any product been shifted out of intervention?

Butter propping things up our end anyway ,skim selling below intervention .....and our coops are investing more money to produce even more of this commodity crap

Buford T. Justice XIX

Glanbia increase milk price by 1c for July milk!

I predict all others to follow;)

Gawddawggonnit

Buford T. Justice V wrote: »

Glanbia increase milk price by 1c for July milk!

I predict all others to follow;)

What's it at now?

atlantic mist

34c a litre for base

Gawddawggonnit

atlantic mist wrote: »

34c a litre for base

Inc vat?

Timmaay

Gawddawggonnit wrote: »

Inc vat?

Yep, at 5.4%, making it 32.25 ex vat?

tanko

Buford T. Justice V wrote: »

Glanbia increase milk price by 1c for July milk!

I predict all others to follow;)

Did they put up the price of dairy nuts at the same time?

Farmer Ed

Buford T. Justice V wrote: »

Glanbia increase milk price by 1c for July milk!

I predict all others to follow;)

Yep that is a pretty fair prediction.

whelan2

Farmer Ed wrote: »

Yep that is a pretty fair prediction.

You'd never know there could be one stray sheep

Farmer Ed

whelan2 wrote: »

Farmer Ed wrote: »

Yep that is a pretty fair prediction.

You'd never know there could be one stray sheep

If so I'm sure the good Shepard (AKA ICOS) will be compelled to go in search of that lost sheep.

Buford T. Justice XIX

Lakeland up also.

www.farmersjournal.ie/glanbia-increases-july-milk-price-300182

Farmer Ed

Buford T. Justice V wrote: »

Lakeland up also.

www.farmersjournal.ie/glanbia-increases-july-milk-price-300182

Wonder what odds Paddy Power would have given on that happening?

greenfield21

I wonder what lakeland would be paying if they didn't take those fane valley suppliers. Its probably all going to the new powder plant, diluting down the butter profit.

whelan2

Will be interesting to see what the difference between fixed price schemes is and base price on statement. Thankfully 2of them finished for me in June

cute geoge

Kerry plc up 1.5 cent for july
That it there for ye now