Milk Price III

Brown Podzol wrote: »

Almost 10% solids.
530 lts @ 3.98p and 4.74f. 47kg solids per cow. Dairygold net price 36.012. Crossbreeds probably won that one.

One of our best years solids to date.
Last test cows 6.02f 4.11 p 13 litres
Fresh calved and Mar/April cows 4.83f and 3.79 p 17 litres

October milk 43.16c per litre inc 6c winter bonus

The money for October was €400 less than May with 40% less milk supplied. Price is rising at the right time for us as we supply a good bit of winter contract. It hit is hard in Sept 14 when price drop started, swings and roundabouts

Keepgrowing wrote: »

Point of info only about 10% of our cows are Jex. Mostly Kiwi x here, very hard to find good Jersey Bulls IMO

How does the kiwi cross go on the hol? WOULD you be better straight jersey with hol?

aurivo 41.6 c/lt
5.84 bf
4.22 pr
36kgs solids per cow
base 27c

freedominacup wrote: »

I know it's too late now but I was thinking about our much vaunted top up from glanbia over the past year. Something was bugging me about it all along and then I had a conversation with our area chairman last week. He was talking about further spinouts and how ebita was going to effect any future purchase price for gii, ie the higher the ebita over a number of years the harder we'll be screwed when our board members spread their cheeks on the purchase price. With that in mind why wasn't GII paying us directly with the co-op making up the losses with a direct capital injection. This would have had two long term benefits for us imo. Firstly GII's ebita drops and the price we'll be forced to pay drops. Secondly if the capital was introduced in the correct manner glanbia plcs shareholding in GII is reduced unless they introduce a similar amount of cash pro rata with their shareholding. I'm probably missing something obvious and even if I'm not it's far too bloody late.

Interesting to hear that, it was one of the things which struck me when I looked briefly at the deal. There is an inherent conflict around the board of the JV because the JV is like the joint property of a marriage which both parties know will have to end. One side gets jam today by paying less, jam tomorrow by paying more, and the other is the reverse - I'm not sure that would satisfy me as the collective interests of suppliers today are not automatically the same as the investment interests of the shareholder group of the future (i.e. those who will pay for, and in turn those others who will profit from, any acquisition of the remaining interest).

Quite apart from that it is a bit presumptuous on the co-op side to assume that an acquisition would necessarily be in the interest of or approved by future members when, in the view of many members (I suspect) they have yet to prove the worth of the initial transaction. If today's milk suppliers should suffer for the *potential* benefit of future suppliers then maybe they should be asked the question explicitly?

Those conflicts are the reason why I always felt there must or ought to have been a more formulaic inter-company agreement somewhere in there to resolve the issue before it occurs. If there isn't then that was a big shortfall on the part of those who advised the farmer side.

But the problem I think is not Glanbia's alone - in general the "we know best" attitude of the co ops and their willingness to make what are actually unprompted investment decisions on behalf of the members leaves a lot to be desired.

will future milk prices be dictated by gii ebit or world market prices?? (by world the 18 countries we export to)

gii paying us direct and capital injection from coop would help ebit but plc will not put forward further capital injections as margin to too low

they are hoping to spin down shares in plc so coop will be just left with gii, structure of board gives plc to much power for minority shareholders

coop could keep injecting money to dilute plc shareholding, would make sense but im sure small print will protect plc shareholding and only way out is to buy them out or be taken over

gii rep was with me last week and according to him farmers are looking for more processing facilities even though this must be paid out of our milk price, im alone in not agreeing for more processing facilities considering they cant sell the product from last expansion

The great promise of the massive infant formula market from belview when figures are public ally released its a shocking the amount of product that went into infant formula of total product produced.

atlantic mist wrote: »

will future milk prices be dictated by gii ebit or world market prices?? (by world the 18 countries we export to)

gii paying us direct and capital injection from coop would help ebit but plc will not put forward further capital injections as margin to too low

they are hoping to spin down shares in plc so coop will be just left with gii, structure of board gives plc to much power for minority shareholders

coop could keep injecting money to dilute plc shareholding, would make sense but im sure small print will protect plc shareholding and only way out is to buy them out or be taken over

gii rep was with me last week and according to him farmers are looking for more processing facilities even though this must be paid out of our milk price, im alone in not agreeing for more processing facilities considering they cant sell the product from last expansion

The great promise of the massive infant formula market from belview when figures are public ally released its a shocking the amount of product that went into infant formula of total product produced.

The projected milk supply figures that were sent in in the census will be subject to milk price/weather etc. Also do not forget that some suppliers will leave -if they can- when the current msa is up. Will the milk lost from these just be covered by exsisting suppliers? Amazed that there was no question in the census on are farmers commited to staying after the msa is up

The max projection from their survey, your projections, will be used to justify more plant build.
The downside of people giving up or leaving will not be factored in, be assured.

kowtow wrote: »

Was there any undertaking given that the census information would not be shared with the jv or the plc? Either aggregated or individually?

The JV undertook the survey.
Only the individual's info is confidential.

well according to rep im alone in my view on needing to utilise the plant we have currently invested in before further expansion, all other suppliers he called to just want to expand

i told him i dont consider myself a commodity supplier and the product which leave my gate is a premium and they are the ones with the mindset of commodities its only when they process it it suddenly becomes a commodity (never mid our cheese, butter, cream are all premium products), will leave if i can get better price or get into processing myself once volume reached

they managed to knock down wexford creamery and rebuild out of 1c profits on supplier, any future expansion should follow same route, tell plc no dividend like ryanair does all profits are reinvested were in this for increased share price not dividends:)

additional capacity will be paid for by the farmers either through milk price or coop/plc shares or as the current case is both,

they must be the only business in the country that cant seem to manage taking on loans for expansions, time for processors to stand on own feet and stop looking for hand outs

Buford T. Justice V wrote: »

Fonterra announce milk price higher than Irish prices.

http://www.farmersjournal.ie/fonterra-jumps-ahead-of-irish-milk-price-241542

That's announcement couldn't of come at a better time, that likes of glanbia are running out of excuses fairly fast not to have a Base price of 30 cent plus come January 2017....