Milk Price- Please read Mod note in post #1

Keepgrowing · 05-08-2016 10:18AM

Dawggone wrote: »

1. I never predicted that milk would go to 14cpl. That would have been foolish when intervention put a floor on milk at 20cpl. I did wish for the end of intervention though...
2. Oil remains soft.
3. After last years world record harvest this years harvest is on track to be the second biggest.
4. As I've already posted, if there is a hardening of milk price it will be modest and if it pushes my price over 30cpl, I'll turn on the taps...and all of Eu with me.
I'm currently getting 28cpl...

Are you getting 28c/litre ATM?
Is 28 the nett price
Is 28 what you'll get for the year?

Dawggone · 05-08-2016 10:41AM

Keepgrowing wrote: »

Are you getting 28c/litre ATM?
Is 28 the nett price
Is 28 what you'll get for the year?

I'm getting 27.75 + vat @ 3.2pr and 3.8bf. Also will be getting circa 2cpl bonus for July, Aug and Sept.

I'll average about 29 for 2016.

Keepgrowing · 05-08-2016 10:51AM

Dawggone wrote: »

I'm getting 27.75 + vat @ 3.2pr and 3.8bf. Also will be getting circa 2cpl bonus for July, Aug and Sept.

I'll average about 29 for 2016.

Estimate we'll return 28-29c inc vat and solids nett of levies

mahoney_j · 05-08-2016 10:54AM

Keepgrowing wrote: »

Estimate we'll return 28-29c inc vat and solids nett of levies

Without fixed and liquid/winter schemes how much further back ?

kowtow · 05-08-2016 11:12AM

Farmer Ed wrote: »

An older farmer was telling me that tradionally he always felt milk per gallon was roughly the same price per gallon as tractor diesel. If his theory was to be applied today, we have a bit to go yet.

Not sure about the price but at the moment mine seems to have about the same solids

Keepgrowing · 05-08-2016 11:30AM

mahoney_j wrote: »

Without fixed and liquid/winter schemes how much further back ?

No fixed here unfortunately, our company doesn't do it. Liquid adds c1.5c

mf240 · 05-08-2016 12:10PM

Farmer Ed wrote: »

An older farmer was telling me that tradionally he always felt milk per gallon was roughly the same price per gallon as tractor diesel. If his theory was to be applied today, we have a bit to go yet.

Cant see diesel getting that cheap!!

Buford T. Justice XIX · 05-08-2016 12:56PM

mf240 wrote: »

Cant see diesel getting that cheap!!

It would be good for lads topping/recreational use of diesel though:)

kowtow · 05-08-2016 02:05PM

Dawggone wrote: »

If milk hits to 30cpl or more (25cpl Irish price), I for one will be turning on the taps. Should amount to another 2k litres per cow or more...I have to say I'm looking forward to making a few quid to cover losses from tillage.

It's never been cheaper to rent money, the question is what's the most profitable way (if any) to turn it into milk and sell it. Same question faces every country, and supply as always will be dictated by their reactions.

milkprofit · 05-08-2016 02:32PM

whelan2 wrote: »

Glanbia firmly at the bottom of all the tables in the milk price league in the journal

how can we find out what is wrong with GIi the biggest the most invested the best ??? management why the worst price

whelan2 · 05-08-2016 02:33PM

milkprofit wrote: »

how can we find out what is wrong with GIi the biggest the most invested the best ??? management why the worst price

Because they can do what they like ...............

Water John · 05-08-2016 02:42PM

Very simple, the business exists for the benefit of management and shareholders, not suppliers of raw materials.

kevthegaff · 05-08-2016 04:19PM

In fairness the couldn't run it any better. Healthy share price/profits for plc. Tied down supply longterm, even branching into banking. All with a nice salary/shares and pension s. Hats off I couldn't run it any better

Water John · 05-08-2016 04:44PM

And as with the culture of a number of processors, no matter what ownership structure, management would still ride you sideways.

atlantic mist · 05-08-2016 05:27PM

the one thing that strike me about this dip in milk prices is that unfortunately the irish milk production system is not as cheap as originally thought by many of our expert quangos and coops who are steering our industry

the amount of loans being offered this year, facilitated by our coops, is crazy never mind the GAP payment schemes, got a call from agri flex loans looks like they have a pot of money left take up hasnt been as big as expected.

we are being paid commodity prices, however our product mix includes much than pure commodities, our powder is going to infant manufacturing as well as third worlds, from our cheese making our whey is going to medical and sports nutrition but were only seening a milk price reflection of the lessor markets

we can sustain low milk prices better than alot of countries (we are about 5c lower than the rest of eu), still being paid slightly better than nz farmers by 1/2c

great to see international prices move a little but we are still putting stock into intervention and this needs to close first before things start to correct.

Stock from belview has ended up in intervention which is annoying considering new plant command the top selling spot over older plants, this is down to management not able to cope with markets or volumes.

Nestle in talks of commission infant plant in belview, we have largest infant formula manufactures setting up here and its not cause we produce cheap product its cause we have a quality product which is very difficult to match...we should be commanding a premium it makes no difference what the world prices are they cant get our exact product anywhere else so we should be working with these manufacturer to provide a balanced contracts for both parties...need to keep coops out of it and ensure return is seen by primary producer

visatorro · 05-08-2016 07:09PM

Never happen unfortunately. Iv said before paddy is a gob****e and doesn't seem to care what price he/she is getting. The amount of litres produced is all that matters. Glanbia know this.
Was told before that if nestle ever get into this country, forget about farming as a way of making a living

Farmer Ed · 05-08-2016 07:12PM

visatorro wrote: »

Never happen unfortunately. Iv said before paddy is a gob****e and doesn't seem to care what price he/she is getting. The amount of litres produced is all that matters. Glanbia know this.
Was told before that if nestle ever get into this country, forget about farming as a way of making a living

Did I read somewhere that Danone announced record profit?

tabby aspreme · 05-08-2016 07:23PM

I read somewhere that if Nestle set up an infant formula plant in Belview they may not source all there milk powder here in Ireland, but no doubt they could still say on the containers,"produced in Ireland" ...

whelan2 · 05-08-2016 07:26PM

How much would this new infant formula plant cost us?

Timmaay · 05-08-2016 08:03PM

Kowtow explained before what is wrong with the processor system in Ireland fairly well, the co-ops should be fully decoupled from the processing side of things, a co-op should just be a collection of active dairyfarmers who team together to try and sell their milk at the best price, the processors would essentially bid for each co-ops milk. That in some sense sounds like what you have in France dwag? Where the processors are looking for milk off the farmers? What we currently have in Ireland are corporate monsters like Glanbia/dg, who have tied us all into 5year contracts, try force us to buy from theirown merchants, try to be our banks also, basically a one stop shop, but ultimately it's primarily interest is to make a profit for its shareholders.

Having said all that, talking to a self employed friend of mine the other night, we both concluded that chasing payment was the most soul destroying part of being self employed, and that's where I had a huge one up on him!

freedominacup · 06-08-2016 02:20AM

Timmaay wrote: »

Kowtow explained before what is wrong with the processor system in Ireland fairly well, the co-ops should be fully decoupled from the processing side of things, a co-op should just be a collection of active dairyfarmers who team together to try and sell their milk at the best price, the processors would essentially bid for each co-ops milk. That in some sense sounds like what you have in France dwag? Where the processors are looking for milk off the farmers? What we currently have in Ireland are corporate monsters like Glanbia/dg, who have tied us all into 5year contracts, try force us to buy from theirown merchants, try to be our banks also, basically a one stop shop, but ultimately it's primarily interest is to make a profit for its shareholders.

Having said all that, talking to a self employed friend of mine the other night, we both concluded that chasing payment was the most soul destroying part of being self employed, and that's where I had a huge one up on him!

Chasing sales is if anything harder.

trixi2011 · 06-08-2016 06:00PM

visatorro wrote: »

Never happen unfortunately. Iv said before paddy is a gob****e and doesn't seem to care what price he/she is getting. The amount of litres produced is all that matters. Glanbia know this.
Was told before that if nestle ever get into this country, forget about farming as a way of making a living

That's a strange one in the UK most milk producers would give there left arm to have a Nestl contract. The last few years Nestl contracted farms have had a top class milk price and also offer education opportunities for farmers and employees on there farms.

Farmer Ed · 06-08-2016 09:14PM

http://hopecentric.com/why-i-stopped-buying-kerrygold-butter/

Was only a matter of time before this started to happen. All this bull about quality assurance and not focussing on what really matters to the decerning customer. Just wait until the Germans cop that Kerrygold is not in the GM free fridge

Buford T. Justice XIX · 06-08-2016 09:23PM

Farmer Ed wrote: »

http://hopecentric.com/why-i-stopped-buying-kerrygold-butter/

Was only a matter of time before this started to happen. All this bull about quality assurance and not focussing on what really matters to the decerning customer. Just wait until the Germans cop that Kerrygold is not in the GM free fridge

So there was no problem with any allergy issues until they discovered that it wasn't 100% GM free and then there was a difficulty?

I'm wondering about what issues are actually present:rolleyes:

jaymla627 · 06-08-2016 09:25PM

Farmer Ed wrote: »

http://hopecentric.com/why-i-stopped-buying-kerrygold-butter/

Was only a matter of time before this started to happen. All this bull about quality assurance and not focussing on what really matters to the decerning customer. Just wait until the Germans cop that Kerrygold is not in the GM free fridge

Out in spain here the last 5 days and what they pass as butter you'd rather use stork, blandless/tasteless/watery crap would be a good description, wouldn't be to worried 99% of people buy it for taste and aren't part of the vegan/anti-gm brigade

Dawggone · 06-08-2016 09:48PM

Timmaay wrote: »

Kowtow explained before what is wrong with the processor system in Ireland fairly well, the co-ops should be fully decoupled from the processing side of things, a co-op should just be a collection of active dairyfarmers who team together to try and sell their milk at the best price, the processors would essentially bid for each co-ops milk. That in some sense sounds like what you have in France dwag? Where the processors are looking for milk off the farmers? What we currently have in Ireland are corporate monsters like Glanbia/dg, who have tied us all into 5year contracts, try force us to buy from theirown merchants, try to be our banks also, basically a one stop shop, but ultimately it's primarily interest is to make a profit for its shareholders.

Having said all that, talking to a self employed friend of mine the other night, we both concluded that chasing payment was the most soul destroying part of being self employed, and that's where I had a huge one up on him!

Not entirely correct on the French Coops Tim.
The system that you describe was attempted by the French farmers but the Coops lost the rag and took it to court. The court ruled that Coops owned quotas and not the farmers. This has led to 'production rights' and the Coops now control the milk supply. However, the Coop separates the milk as a single entity and then sells it to its own processors that are actually it's subsidiaries iykwim....

That's the reason I get a milk price 3mts in advance.

Btw, the most soul destroying work I've ever done was going around trying to collect money from (dairy) farmers.

Farmer Ed · 06-08-2016 10:07PM

jaymla627 wrote: »

Out in spain here the last 5 days and what they pass as butter you'd rather use stork, blandless/tasteless/watery crap would be a good description, wouldn't be to worried 99% of people buy it for taste and aren't part of the vegan/anti-gm brigade

I wouldn't dismiss it so likely and if you were to think about it l logically, because we feed so little grain anyway, relative to other countries we have a competitive advantage if we were to complete for the GM free market.. Yes most people may buy on taste but people that buy kerrygold also pay a nice premium for it.

Timmaay · 06-08-2016 10:32PM

Dawggone wrote: »

Btw, the most soul destroying work I've ever done was going around trying to collect money from (dairy) farmers.

My self employed friend is in the construction business, the amount of money he is still chasing was scary 2bh. Builders going bust to wipe their hands free of their debts, and back up and trading afew days later, either cash in hand or working under mates tax clearance etc! The family dairyfarmers here in general tend to have a good reputation for paying up from what I've heard in general on the ground, always the few bad apples but ya get that in every business!

Dawggone · 06-08-2016 10:53PM

Timmaay wrote: »

My self employed friend is in the construction business, the amount of money he is still chasing was scary 2bh. Builders going bust to wipe their hands free of their debts, and back up and trading afew days later, either cash in hand or working under mates tax clearance etc! The family dairyfarmers here in general tend to have a good reputation for paying up from what I've heard in general on the ground, always the few bad apples but ya get that in every business!

When you're last and second last on the payment list (straw and silage contractor), grovelling and squirming become a way of life. Fact.

I wouldn't go back to that shyte even if it was profitable...

Addendum. I also grovelled in front Dunnes, Musgraves et al.
Bast*rds.

Doesn't happen here thanks be to feck.

Sold a round baler yesterday (first season, 3k bales) to a complete stranger from the Swiss border, took a cheque without even giving it a second thought. Priceless.

whelan2 · 07-08-2016 05:54PM

Water John wrote: »

Very simple, the business exists for the benefit of management and shareholders, not suppliers of raw materials.

Not forgetting the farmer board members on 85k a pop. Handy money to have in your back pocket in a bad milk price year. Was talking to a dairy farmer today who reckons we need to get rid of these farmer board members and set up a 5 person price negotiating commitee who are on expenses only like the Lakelands farmer board members

Milk Price- Please read Mod note in post #1

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