Question RE: Dairy farm milk collection

FdSc17

Hi all,

Sorry if this is not the right place to ask but I am currently doing an Ag science project on the profitability of dairy farming in ireland. I have a question regarding milk collection - namely is there a cost associated with having milk collected, and would this cost increase the more frequently the milk is collected? Also if there is a cost how much would it be? Any help appreciated!

Thanks,
F.

Timmaay

FdSc17 wrote: »

Hi all,

Sorry if this is not the right place to ask but I am currently doing an Ag science project on the profitability of dairy farming in ireland. I have a question regarding milk collection - namely is there a cost associated with having milk collected, and would this cost increase the more frequently the milk is collected? Also if there is a cost how much would it be? Any help appreciated!

Thanks,
F.

There has to be some cost associated with it, but the processor pays it usually, in terms of frequency etc, the lorry would aim to be full whether he is stopping in 3 farms or 10farms, what use the processor has for the milk dictates how often it will be collected also, liquid milk is often daily. I'm not really answering any of your questions, but your not really going to get a proper answer from the farmer side. The only other thing I can say is having the milk more frequently collected is largely a disadvantage to the farmer, his tank needs to be washed more often, and more disruption if the lorry comes around milking times etc.

alps

FdSc17 wrote: »

Hi all,

Sorry if this is not the right place to ask but I am currently doing an Ag science project on the profitability of dairy farming in ireland. I have a question regarding milk collection - namely is there a cost associated with having milk collected, and would this cost increase the more frequently the milk is collected? Also if there is a cost how much would it be? Any help appreciated!

Thanks,
F.

F...good luck with your project. The cost of milk collection from farms is paid for by the processor and indirectly charged to the farmer in the milk price that is paid. With the nature of coops, all farmers are paid the same price for the same standard of milk, so there will be no greater cost to a farmer based on the farms volume or distance from the processor. However processors will pay hauliers different rates for different distances. Some processors insist that the farmer has the capacity to hold 3 days milk, some insist on just 2, but the frequency of collection often depends on efficiency decisions for the hauliers.
I'm not familiar with haulage rates, but I expect that they normally range from .75 to 1 cent per litre with some very long range collections costing quiet a bit more.
At quieter times of the year it can be financially beneficial for some processors to close down their production facilities and pay an increased haulage cost to carry the milk elsewhere.
If a farmer wants his milk collected more often than the processor standard, there will be an extra charge per collection. ..

whelan2

Daily collection here. There cant be too much milk around at this time of year. Must be costing them a bit to collect it.

FdSc17

Thanks for the replies folks!!

mycro2013

The father has daily collections nearly year round. Due to his proximity to the co-op and the main road. Haulier uses it to top up on his way.

Buford T. Justice XIX

In Kerry, we produce manufacturing milk, basically drying milk to powder, farmers must have capacity for 3 days milk in one tank. They don't like the second tank down here.

Collections up to 15/month are free but any more often and the farmer has to pay for it.

As far as I can remember, there are no figures out there for the cost/L of milk collection as most(all?) processors pay for the collection.

mycro2013

Fealesbridge co-op are charging some of their milk suppliers for milk collection I think it's 2 cents a litre.

The reason for this is the following. A group of Kerry suppliers sold their quota prior to the abolition of quotas. They then started re milking but Kerry wouldn't take their milk with out a quota (which doubles as supply agreement for Kerry farmers)in place .

Feales bridge is the only one who would take their milk. Fealebridge then supplies Kerry.

In regards your project you may be going off track somewhat. Are you looking at the profitability from a farmer or processors point of view.

Mooooo

Buford T. Justice V wrote: »

In Kerry, we produce manufacturing milk, basically drying milk to powder, farmers must have capacity for 3 days milk in one tank. They don't like the second tank down here.

Collections up to 15/month are free but any more often and the farmer has to pay for it.

As far as I can remember, there are no figures out there for the cost/L of milk collection as most(all?) processors pay for the collection.

100 euro per collection over and above 15 when we had to go daily due to tank size. Got it refunded alright when upgraded the tank

whelan2

Daily collection is a pain, I would say in the last year we had about 10x 2 day collections, all the rest were 1 day collections, tank will hold over 10k litres. Extra cost for cooling and washing:mad:

Mooooo

whelan2 wrote: »

Daily collection is a pain, I would say in the last year we had about 10x 2 day collections, all the rest were 1 day collections, tank will hold over 10k litres. Extra cost for cooling and washing:mad:

Have asked them about covering some of it.? Tanks take a lot of stuff to wash and you can't really not wash them especially the dx tanks. Not a mind the hot water as well

whelan2

Mooooo wrote: »

Have asked them about covering some of it.? Tanks take a lot of stuff to wash and you can't really not wash them especially the dx tanks. Not a mind the hot water as well

I have said it a few times. I was told daily collections were finished at the end of October, now we are still on them. Afraid to say anything else as they might say I am lucky to be being collected at all. I assume they need the milk when its being collected so often

mycro2013

whelan2 wrote: »

Daily collection is a pain, I would say in the last year we had about 10x 2 day collections, all the rest were 1 day collections, tank will hold over 10k litres. Extra cost for cooling and washing:mad:

If you're on daily collection your milk has a higher allowable temperature so you can adjust your cooling system to suit.

Sam Kade

whelan2 wrote: »

Daily collection is a pain, I would say in the last year we had about 10x 2 day collections, all the rest were 1 day collections, tank will hold over 10k litres. Extra cost for cooling and washing:mad:

Every 4 days in December with Dairygold During summer every 2 days. I though most co ops were pushing 3 day collection around 10 years ago?

Mooooo

Sam Kade wrote: »

Every 4 days in December with Dairygold During summer every 2 days. I though most co ops were pushing 3 day collection around 10 years ago?

3 days here in Dec, but possibly lorry filling the load here. They were I think but some of the likes of Danone don't want milk on farm for longer than 2 days I think

whelan2

On one hand we are being told they dont want milk at this time of year and yet they are collecting everyday ?

whelan2

They must have been reading this thread, wasnt collected from friday until about an hour ago , milkman took the weekend off. They are collecting all farmers everyday at the moment for uht milk- milk has to be everyday for uht- so I will be collected in the morning again, which will be 1 milking only. The contract is being increased so looks like we will be on daily collections for a good while to come

OverRide

According to this document,FMP agreed a Premium from Glanbia for those daily collections UHT milk

http://www.ifa.ie/wp-content/uploads/2016/03/Agreement-on-Liquid-Milk-March.pdf

Most of it is going to China with a much reduced transport charge

http://m.independent.ie/business/farming/new-17m-uht-milk-plant-opened-34205612.html