Dairy Chitchat 4, an udder new thread.

yosemitesam1

https://www.boards.ie/discussion/comment/123999108#Comment_123999108

Had the co-ops never done spinouts etc and maintained a requirement to have a certain shareholding for the volume of milk supplied, it would have been a much more solid base for the industry. All new processing capacity would have been funded by farmers investing in more shares and this in itself would have led to expansion being more regulated.

The whole thing is structured arseways now and is gone too far from what a co-op should be.

K.G.

https://www.boards.ie/discussion/comment/124000101#Comment_124000101

That is the most notable thing from the dairygold conversation is the lack of understanding of coop principles and structure s.its a far cry from the 1920 s when our coop was started and men put down their farms as security and one man paid for the first 3 months milk

visatorro

https://www.boards.ie/discussion/comment/124000047#Comment_124000047

Some have the lads selling parlours can be detached from reality with the money they are looking for second hand parlours!

Bass Reeves

https://www.boards.ie/discussion/comment/123999976#Comment_123999976

And who are the main creditors that get burnt. Banks will have security over a substantial part of long term borrowings either having leins on product or security on assets. Revenue is usually a secured creditor after banks and wages to staff. Staff have security for there wages and statutory redundancy.

The main creditors will be farmer suppliers be careful what you wish for.

https://www.boards.ie/discussion/comment/124000095#Comment_124000095

Farmer goodwill is basically BS. If you go into examinership or liquidation you are on your bike especially if it happens at the wrong time of year. At present milk payments are low but if it happened in early summer time payments would stop but you would still be in hoc for your fertlizer if it was bought even on normal 30 day credit.

If it went it would go before a monthly payment which would mean all the previous month and 15-20 days of present month. Even if the plug was pulled at present and banks got caught this time they would not be caught next time. Borrowings woukd be much harder to get for co-ops long term.

The property value of any co-ops exceeds bank borriwings

Bass Reeves

https://www.boards.ie/discussion/comment/124000155#Comment_124000155

The most notable thing is how many misunderstand the reality of business concepts that you can burn the banks etc. The failing at DG was in inability of board members to make the hard decisions early last summer and drop the price by 5c/L and keep selling the skim onto the market.

Kerry group made the same mistake when they got caught with the expensively bought fertlizer a couple of years ago. First loss is the cheapest loss.

weatherbyfoxer

https://www.boards.ie/discussion/comment/124000289#Comment_124000289

Absolutely,a new basic 10 unit is €46,000 fitted.Then take 40% tams on the 10 units,plate cooler and water heater its leaving it supplied and fitted for €30,000..very hard justify an older used 10 unit at €10-15k then pay for disembly, fitting and whatever parts need replacing

straight

https://www.boards.ie/discussion/comment/124000934#Comment_124000934

46k is still a rob though. Is that no jars/meters, nothing like. Just a cluster and straight to the receiving jar like. Then a milk pump through the plate cooler. Not much to it.