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Milk Price- Please read Mod note in post #1

delaval

24/6/16

Recently we saw three posters close their accounts over disagreements in the dairy threads. While there is a lot of frustration and discontent with current milk prices and the processing industry, the recent tendency for dairy threads to become tit-for-tat arguments isn’t tolerable for those not involved.

All farming sectors go through difficult periods and during such times there may need to be changes in how threads are moderated.

Dairy threads are going to be more closely monitored and subject to stricter moderation for a while.

To that end we won’t tolerate baiting of posters, constantly reviving old arguments, posters with agendas or crusading for a cause.

Whether it’s discussion of the business or politics of the dairy or other sectors, we expect civility and tolerance toward each other and other opinions as diversity of opinion is needed as a source of different ways of looking at a situation.

"The aim of argument, or of discussion, should not be victory, but progress." - Joseph Joubert

Also please be aware that what you may post as light-hearted banter can be read totally differently by someone adversely affected by the subject matter and evoke a reaction you hadn’t intended.

The ‘Off-Season’ forum, and its anonymous posting, is available for anyone to chat about their situation.

The Mod Team.

I was wondering would it be a help if we posted our milk prices. I would hope that if someone is low that help could be given, on the other hand if high perhaps your tips could help us all.

I would suggest posting your processors base inc Vat for comparison
Post your Nett price for others to help or be helped
I think that solids should be included.
I suggest any seasonal/liquid contract price be excluded or seperated.

I feel that we as farmers do a lot of bitching about processor prices and rightly so IMO. I also feel that we should not worry about it as we can do nothing about base price but we certainly do something about it at farm level.

What do you all think?

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Water John

So how much is the MSA catching the Irish farmer for? Better pick up the phone and ring Cunninghams.

Farmer Ed

jaymla627 wrote: »

Glanbia have guaranteed 18.5 pence for august milk from a base of 15 pence for May milk, so around 24 cent, would love to see their reasoning for how they can pay more for British milk then Irish, probably a case of they would of started losing suppliers as no msa out their as far as I know

A in fairness now I don't think the UK suppliers will qualify for the free bean counters to help them budget. So instead of giving them a 2cent loan I guess they just have to pay them the 2 cent.

einn32

Waiting on Murray Golburn to announce the new season price. Lot of media hysteria, seems to be more about share holders now than the farmers! Milk intake down in April compared to that time last year. I think there is a lot of culling going on now. Weather is fairly wet/cold too. Grazing is a challenge, cows not walking so furthest away paddocks are out. Only got 200 to the designated paddock yesterday!

greysides

atlantic mist

U.K. Out of eu, good thing we built that powder factory and not targeting our neighbours, beef farms will feel it. Wonder what will single farm payment b cut by there contribition

Buford T. Justice XIX

atlantic mist wrote: »

U.K. Out of eu, good thing we built that powder factory and not targeting our neighbours, beef farms will feel it. Wonder what will single farm payment b cut by there contribition

2 years off yet but as Britain is a net contributor to the budget, there will have to be cuts.

Maybe the Eurocrats will take a pay cut to help ease the pain:rolleyes:

alps

atlantic mist wrote: »

U.K. Out of eu, good thing we built that powder factory and not targeting our neighbours, beef farms will feel it. Wonder what will single farm payment b cut by there contribition

Long way off yet mist...This is only their first time voting....History would show that they will be given a chance to get the vote right..

If the exit goes ahead, it could see the demise of UK farming to such an extent that it could actually open markets for us, including the fresh milk market.

I can't see this being a full exit...The no side have had their victory and in the cold light of day as the financial implications are worked through, trade with the EU will remain of the utmost importance.

I'm not convinced that we are in for a bad hit here. Dairy farmers don't survive on SFP...We survive or thrive on milk price. ..

If UK production declines, I would suggest that Irish produce will be the next best preferred substitution...

fepper

alps wrote: »

Long way off yet mist...This is only their first time voting....History would show that they will be given a chance to get the vote right..

If the exit goes ahead, it could see the demise of UK farming to such an extent that it could actually open markets for us, including the fresh milk market.

I can't see this being a full exit...The no side have had their victory and in the cold light of day as the financial implications are worked through, trade with the EU will remain of the utmost importance.

I'm not convinced that we are in for a bad hit here. Dairy farmers don't survive on SFP...We survive or thrive on milk price. ..

If UK production declines, I would suggest that Irish produce will be the next best preferred substitution...

Their policy is cheap food

alps

fepper wrote: »

Their policy is cheap food

Yes...and they will no longer have SFP to subsidise it...

fepper

alps wrote: »

Yes...and they will no longer have SFP to subsidise it...

That was their policy before sfp invented,cheap lamb from nz,beef from south America,danish pigs, milk?????

Farmer Ed

alps wrote: »

Long way off yet mist...This is only their first time voting....History would show that they will be given a chance to get the vote right..

If the exit goes ahead, it could see the demise of UK farming to such an extent that it could actually open markets for us, including the fresh milk market.

I can't see this being a full exit...The no side have had their victory and in the cold light of day as the financial implications are worked through, trade with the EU will remain of the utmost importance.

I'm not convinced that we are in for a bad hit here. Dairy farmers don't survive on SFP...We survive or thrive on milk price. ..

If UK production declines, I would suggest that Irish produce will be the next best preferred substitution...

I'm inclined to agree. I think a lot of the predictions are just coming from a fear of the unknown. As bfp is not indxed linked in teal terms it is being reduced in value every year anyway as inflation bites in to the value of it. Maybe Brexit might even have a possitive effect of getting governments and officials across Europe to think twice before they go blaming the Eu for any new unpopular bit of legislation. Hardly surprising the Eu is loosing popularity when it constantly get blamed for everything.

kowtow

alps wrote: »

If the exit goes ahead, it could see the demise of UK farming to such an extent that it could actually open markets for us, including the fresh milk market.

I'm not sure why it should see the demise of UK farming.

As far as SFP is concerned, it doesn't come from Europe until it has come first out of the pockets of uk taxpayers. If subsidy is needed, it can be maintained and indeed targeted to suit the needs of UK farmers rather than a catch-all pan European approach, not to mention the additional layer of Brussels bureaucracy which is currently in between the taxpayer in the UK and the farmer next door.

OverRide

Scotland has already guaranteed a bps equivalent for their farmers as they've the powers to do so
NI will need an increase in their westminster block grant
Good look in looking for that
I'd imagine strathroy will be actively poaching suppliers in 2018 when farmers up north lose EU payments

atlantic mist

so whens are they holding the second referendum, im sure theyll do a nice on it:)

ibec representative on radio 50% of beef going to uk and 30% of our dairy produce, that must be a mistake is it? Glad i sent 10 cows out of parlor to larry last week weaken beef price will drop back for next few months wouldnt be able to compete with south american beef

france a bigger exporter to uk than us were only 33 largest exporter on their list they wouldnt miss us too much....well miss them thou, talks of french leaving now

guess were on our own in europe now and just before dairy crisis conference germany, france and poland ganging up on us, hopefully a few stay in france after the euros and start breeding strong

Water John

There is a distinct possibility of NI, Scotland and Gibralter staying in the EU but not leaving the UK. This is the reverse of the Denmark situation with Greenland and the Faroe Islands.
The long term market to keep a decent milk price is in Europe. UK always tended towards cheap food policy. I know it will remain a large market for us but we need to level it out more.

Buford T. Justice XIX

atlantic mist wrote: »

so whens are they holding the second referendum, im sure theyll do a nice on it:)

ibec representative on radio 50% of beef going to uk and 30% of our dairy produce, that must be a mistake is it? Glad i sent 10 cows out of parlor to larry last week weaken beef price will drop back for next few months wouldnt be able to compete with south american beef

france a bigger exporter to uk than us were only 33 largest exporter on their list they wouldnt miss us too much....well miss them thou, talks of french leaving now

guess were on our own in europe now and just before dairy crisis conference germany, france and poland ganging up on us, hopefully a few stay in france after the euros and start breeding strong

A significant proportion of the population in each country in the EU would vote to leave if they had the option.

They would be a majority in a good number of countries.

That's why there won't be many referendums in countries in the EU on whether to leave or stay.

Water John

Well be accused of leaving the core point of this thread. But you are right. We have not had a great European leader. Every one has their faults but there there is no one around like Kohl or Brandt with a long time.
Nobody good and charismatic enough to carry the people.

[Deleted User]

Buford T. Justice V wrote: »

A significant proportion of the population in each country in the EU would vote to leave if they had the option.

They would be a majority in a good number of countries.

That's why there won't be many referendums in countries in the EU on whether to leave or stay.

Ne(therlands)xit is very much on the cards is it not?

Buford T. Justice XIX

Waffletraktor wrote: »

Ne(therlands)xit is very much on the cards is it not?

Yeah, Geert Wilders is pushing strongly for it anyway.

Farmer Ed

Agriland report Eu prices are starting to lift. Especially butter.

Farmer Ed

http://m.independent.ie/business/irish/glanbias-talbot-to-share-in-45m-executive-bonus-pot-31248398.html still money in milk

whelan2

Farmer Ed wrote: »

http://m.independent.ie/business/irish/glanbias-talbot-to-share-in-45m-executive-bonus-pot-31248398.html still money in milk

That article is from last year

Farmer Ed

whelan2 wrote: »

That article is from last year

Sorry I didn't see the date.just on my phone..

kevthegaff

Was talking to accountant Friday, said the number of lads going to interest only is frightening. It would be a final option but would only consider if things were very bad. Is it kicking the can down the road?

OverRide

It depends
Going interest only should really only be planned as a sub loan that you intend to pay back
As long as you are confident that you will catch up , then go for it
If the business cannot pay cap and interest at milk prices below 30c and pay yourself,then you are at nothing

The accountant should be looking at it in that light,if they aren't it's not good,as you are paying for positivity,sound advice and not for someone to worry you
Solutions to problems,not problems with solutions

Water John

Well milk is always a cycle. So banks and every body else hope the price rises. Based on that, if a farmer is tight, interest only makes sense.
Paying the interest means the loan is on hold and the situation is not getting worse.

kevthegaff

OverRide wrote:

The accountant should be looking at it in that light,if they aren't it's not good,as you are paying for positivity,sound advice and not for someone to worry you Solutions to problems,not problems with solutions

Wasn't talking about myself! But it does show the crisis we in. I'd imagine the banks would Red mark you too

rangler1

Water John wrote: »

Well milk is always a cycle. So banks and every body else hope the price rises. Based on that, if a farmer is tight, interest only makes sense.
Paying the interest means the loan is on hold and the situation is not getting worse.

My opinion is that milk is now the same as the other farm entrprises, price will now hover around cost of production including labour of course, plus or minus 10%.
If I'm right, farmers would be better to grasp the nettle and deal with the principle as well as the interest,

Water John

I'd choose to feed and educate my family, Rangler. Loan on which you are paying interest can wait a while.

rangler1

Water John wrote: »

I'd choose to feed and educate my family, Rangler. Loan on which you are paying interest can wait a while.

Can't see the banks waiting too long, in the eighties your interest rate would go up a couple percent if you tried that