Glanbia's new winter milk ,liquid contract Scheme

Mortelaro

From what I've read current liquid contracts end forever from the end of March 19
Next winter,you can enter the new scheme on a 5 year liquid MSA with a year 3 review
Premium price is around 8c a litre for 4 mths so no premium in October or march
There's also no premium for the other 8 month's

All winter milk suppliers are eligible it seems for this one new unified scheme
Min Supply into it is 650 litres a day
Its not clear whether there's an upper limit or if all milk supplied in those 4 months gets the premium

For current liquid suppliers,there's an exit scheme of compensation based on the litres in your current contract
For a 500 litre contract, the figure is about €11000 with a gradual transition period where you get around 6c a litre in nov Dec of 19 and Jan feb of 20 and again in Nov Dec of 20 but it ends there if it's the option to exit liquid as opposed to entering the new scheme you've chosen
That's to ease the transition for those going to spring milk

From my understanding this is a done deal but no one seems to be talking about it
I presume it must be discussed soon at local fmp meetings as current liquid lads would start bulling for Autumn next month
This is very short notice with a big decision to be made
Its frankly crazy that suppliers have not been notified

I'm sure there's more I haven't thought of so if anyone knows more about this,discussion would be useful
We've always done liquid here but it's important to remember a cow should produce the same amount of milk in 9 months,No matter when that 9 months is
But she'll do it a lot cheaper off grass (that's if you don't have a summer like this past one) So its decision time

whelan2

Where did you get this information. We should have been notified of this month's ago. Was going to start breeding here in 10 days. Straws bought etc. As usual supplier is last to know

Mortelaro

I got it from another liquid farmer,it's doing the rounds privately but nothing sent officially about it even from FMP which makes me wonder whether it's agreed
I'd first heard about the 4 month contract a few months ago but at that stage not much else
I hear ya on the 'last to know' element ,its wierd

Timmaay

I got something here on the post last week about the new 4month winter scheme, but it did not mention anything about liquid milk. It did however state that you would need to supply 20% of your years supply in them 4months, not a hope of me hitting that here, at 16% last year and will be less this year (that is despite me not actually taking the piss haha, I still always have supplied my daily liquid contract of 370l/day, but I made sure any expansion I did was with spring calved cows because zero point me supplying extra winter milk with no bonus). If I'm pushed outa Glanbias liquid milk it makes the leap to Strathroy even more tempting as I'll be up approximately 12k a yr with their spring only milk supply.

whelan2

Where did you get the letter from? I got nothing and anyone I've asked got nothing either. Time is ticking on now for serving cows for next year

Timmaay

whelan2 wrote: »

Where did you get the letter from? I got nothing and anyone I've asked got nothing either. Time is ticking on now for serving cows for next year

Glanbia, I was just looking for it there now, but I think I might of thrown it in the bin because I knew I wouldnt be going for it haha

stretch film

It seems core liquid quota will be retained at a 6 mth premium which wont be far off current levels.
also there is scope for anyone with some scheme milk to expand or enter the new autumn calving scheme.

thats the positives , some negatives are
the new liquid msa is for 5 yrs .
there is a minimum volume to be supplied by end yr 2 as said earlier.
while the restructuring exit deal is attractive its only available until feb and it closes then.

glanbia have no desire to pay full winter premium on the current pool and this stick/carrot approach is the attempt at taking this high value milk out of farmers hands .

Sacrolyte

8 Cent premium is very weak at present day winter costs. Suppliers should be looking for a far better deal.
They obviously don’t care if suppliers pull the plug on winter milk. I reckon they think they will get all the milk they need from bigger spring suppliers milking on through the winter.

simx

Sacrolyte wrote: »

8 Cent premium is very weak at present day winter costs. Suppliers should be looking for a far better deal.
They obviously don’t care if suppliers pull the plug on winter milk. I reckon they think they will get all the milk they need from bigger spring suppliers milking on through the winter.

Reckon you’re right, I personally know of 6 or 7 lads that are milking through now that used to always have a dry period

Keepgrowing

OP is confusing the Winter milk scheme “Bailey’s contract” with Liquid supply.

The rules as outlined are for the new winter scheme not liquid.

This is why liquid only farmers wouldn’t have gotten any correspondence

whelan2

Keepgrowing wrote: »

OP is confusing the Winter milk scheme “Bailey’s contract” with Liquid supply.

The rules as outlined are for the new winter scheme not liquid.

This is why liquid only farmers wouldn’t have gotten any correspondence

Is it not running a bit late tjhough to be letting liquid farmers know the score before starting orgainising breeding for autumn 2019?

Keepgrowing

whelan2 wrote: »

Is it not running a bit late tjhough to be letting liquid farmers know the score before starting orgainising breeding for autumn 2019?

It’s not for the liquid suppliers, it’s the new winter scheme and it’s well known for 5-6 months now. Old news

whelan2

Keepgrowing wrote: »

It’s not for the liquid suppliers, it’s the new winter scheme and it’s well known for 5-6 months now. Old news

text message from fmp on 18/10 new agreement reached on liquid milk to start 1st oct 2019 contains new restructuring scheme . All local FMP groups will hold info meetings asap . Considering it's about 2 years since our last loacl fmp meeting i wont hold my breath

Keepgrowing

whelan2 wrote: »

text message from fmp on 18/10 new agreement reached on liquid milk to start 1st oct 2019 contains new restructuring scheme . All local FMP groups will hold info meetings asap . Considering it's about 2 years since our last loacl fmp meeting i wont hold my breath

I thought FMP met very regularly?

whelan2

Keepgrowing wrote: »

I thought FMP met very regularly?

Not locally. I complained a few years ago was going to stop my subs. There were a few meetings after that. Tbh I'm too busy to be going to every meeting for every cause but if there was an fmp meeting I'd go.

Mortelaro

Keepgrowing wrote: »

OP is confusing the Winter milk scheme “Bailey’s contract” with Liquid supply.

The rules as outlined are for the new winter scheme not liquid.

This is why liquid only farmers wouldn’t have gotten any correspondence

The document I have in front of me is an agreement between FMP and Glanbia
Afaik FMP do not represent Bailey's contract
It clearly mentions the liquid deal currently in place
Nowhere does it mention Bailey's contract so you are incorrect
Further a text has gone out tonight to liquid contract suppliers to attend their next fmp meeting where it's to be explained
I'm presuming you're not a member of FMP ?

Keepgrowing

Mortelaro wrote: »

The document I have in front of me is an agreement between FMP and Glanbia
Afaik FMP do not represent Bailey's contract
It clearly mentions the liquid deal currently in place
Nowhere does it mention Bailey's contract so you are incorrect
Further a text has gone out tonight to liquid contract suppliers to attend their next fmp meeting where it's to be explained
I'm presuming you're not a member of FMP ?

Thanks for that. It’s the same as our Baileys one so I thought you were confusing the two. Thanks for the clarification

Edit: you’re correct FMP not involved in winter contract

whelan2

Keepgrowing wrote: »

Thanks for that. It’s the same as our Baileys one so I thought you were confusing the two. Thanks for the clarification

Edit: you’re correct FMP not involved in winter contract

If new agreement on liquid milk is starting on 1st October 2019 should suppliers not have been informed before this of any changes? It's a while since I got that text on 18/10. Anyway I'm off to my leaba liquid quota to fill in the morning

Mortelaro

whelan2 wrote: »

Not locally. I complained a few years ago was going to stop my subs. There were a few meetings after that. Tbh I'm too busy to be going to every meeting for every cause but if there was an fmp meeting I'd go.

You'd really need to contact the FMP chairman to complain and the IFA
Our meetings are very regular and well attended
However nothing discussed in this thread has been discussed at mine yet,just speculated on
They just hadn't agreed anything
That's been almost detrimental because anyone thinking it worthwhile to switch to spring needs to take decisions on bulling now
I guess that didn't occur to anyone because the expectation was not many if any would
It's a big oversight but being a last minute deal because of hard ball a nuisance but understandable

whelan2

We will have a local fmp meeting next week. Each supplier needs to get a letter stating what their liquid quota is and what their options are ASAP.

Mortelaro

I've been informed that the payment is for 6 months to existing liquid contract holders ie they get paid the 8c in Oct and march and get upped to the min 650 litres if their current contract is less
On a 450 litre contract (100 gals a day) that's worth 18 euro's a day (less obviously if your old contract is larger)
18 times 180 days in the 450 litre example is worth around 3.5k
Subtract from that the loss of your .75 bonus on the other 6 month's apr to September and you'd be marginally better off

Unknown to me is allocation
Its not mentioned at all other than the assumption that there's a min of 650 a day

Also there's a 1c deduction on the 8c for 3 years to pay for lads to switch to spring that decide to

Haven't done maths there
Too busy today :O

stretch film

Mortelaro wrote: »

I've been informed that the payment is for 6 months to existing liquid contract holders ie they get paid the 8c in Oct and march and get upped to the min 650 litres if their current contract is less
On a 450 litre contract (100 gals a day) that's worth 18 euro's a day (less obviously if your old contract is larger)
18 times 180 days in the 450 litre example is worth around 3.5k
Subtract from that the loss of your .75 bonus on the other 6 month's apr to September and you'd be marginally better off

Unknown to me is allocation
Its not mentioned at all other than the assumption that there's a min of 650 a day

Also there's a 1c deduction on the 8c for 3 years to pay for lads to switch to spring that decide to

Haven't done maths there
Too busy today :O

Explain to me how lads that are less than 650l are to be upped to the minimum.

Buford T. Justice XIX

stretch film wrote: »

Explain to me how lads that are less than 650l are to be upped to the minimum.

Their payments get increased to the 650l level if lower than 650 litres, their contracts stay the same?

Mortelaro

stretch film wrote: »

Explain to me how lads that are less than 650l are to be upped to the minimum.

To be honest it's as clear as mud
Min supply is 650 litres but it is not clear if you're below that now,that you get paid the 8c(actually 7c for 3 years when the restructuring levy is off) on the balance or on all the milk you supply

I took it if in the new scheme that everything you supply is paid liquid as long as you do a min 650 litres a day

But it's not even clear in what I'm reading if that 650 applies to legacy lads

Will know more after our local fmp meeting

Timmaay

I hear teagasc have approved funding for a research PhD study on how to bloody understand the glanbia milk price structure

Mooooo

Not glanbia but sounds like the minimum they want is 650 a day from each supplier, and possibly then any amount over the agreed winter volume will just get standard price. ? You'd think the summer was the time for the info to be put out there

GrasstoMilk

Mooooo wrote: »

Not glanbia but sounds like the minimum they want is 650 a day from each supplier, and possibly then any amount over the agreed winter volume will just get standard price. ? You'd think the summer was the time for the info to be put out there

The exact same thing happened last year with winter milk and the Bailey's contract. Christmas week letters were sent out saying that the contracts were changing. My folks knew I wasn't interested in a split calving hers for a long time and we didn't sign up to the new scheme but a bit of notice would have been welcome really. I was going to stick at it for another year or 2 but when you had to sign up for 5 years it didn't suit me.
The transition this year will be tough, but were sending out more milk than this time last year atm so that's a help. Calving is starting around Jan 20th so hopefully we'll get milk out the gate fairly promptly

mahoney_j

I must be the only fool considering/in the process of going calving and milking for liquid milk ......not with glanbia mind I hear lots talking about getting out of it ,some actually do but lots stuck at it for various reasons .on a bad milk price year an argument I often hear is that a good liquid/winter contract is the difference beteween an ok year and poteintal disaster ..

Mooooo

Only 2 left in our group at winter milk, 4 of us exited in the last year or two, not just dairygold one other was in a clona scheme which would have been better paying. Depends on the prices offered etc or if you find your buying in feed anyway the cost differential reduces. Mj perhaps with your fragmentation it may work out but one of the other issues is different groups of stock and managing them. If I was going continuing in winter milk I would have 4 weeks calving in Oct and 8 weeks in spring and keep it at that.
Edit just on the bad milk price year, 23 or 24 base, the extra feed, work, time etc will still have winter milk under the break even point.

mahoney_j

Mooooo wrote: »

Only 2 left in our group at winter milk, 4 of us exited in the last year or two, not just dairygold one other was in a clona scheme which would have been better paying. Depends on the prices offered etc or if you find your buying in feed anyway the cost differential reduces. Mj perhaps with your fragmentation it may work out but one of the other issues is different groups of stock and managing them. If I was going continuing in winter milk I would have 4 weeks calving in Oct and 8 weeks in spring and keep it at that.
Edit just on the bad milk price year, 23 or 24 base, the extra feed, work, time etc will still have winter milk under the break even point.

My main reasons are to spread workload and provide more hours (and time off for me)for lad I currently have sheds ,parlour all in place

whelan2

mahoney_j wrote: »

My main reasons are to spread workload and provide more hours (and time off for me)for lad I currently have sheds ,parlour all in place

Once you have 2 distinct calving groups you're flying. Calving interval of 371 here on latest report.