Milk Price III

The problem is you are fixing your output price with no control of inputs. In most other cases of fixed prices operators are able to fix input prices

Ryanair fix fuel prices however it only part of there in puts. This allows them to sell airline tickets months in advance and know the rest of there costs such as labour, plane repayments, airport charges.

With milk it's different you cannot fix feed and fertilizer cists your two biggest inputs. My own opinion always was there was little benefit except as a tax management mechanism where you were a sole trader rather than in a company setup.

If you are in a company setup you should be able to manage cash flow without use of fixed price schemes. You just leave a buffer fund in place similar to a rainy day or a sinking fund. As you will virtually always be making a profit it's immaterial whether you pay the 12% rate this year or next year. As well losses can be carried forward.

For years fixing interest rates was like this on mortgage or other borrowing's. Banks just added a margin to profit from your wish for security. However this changed after the last crash where banks were caught with a lot of short term borrowing and struggled to get short-term funds

They changed there model to encourage fixing of rates where now you pay a premium to remain on a variable rate. The banks can manage there money supply better by giving fixed rates of 1,3,5,7,10 years etc. While at present where deposits exceed borrowing's by 20-25% the banks do not offer fixed rates to ordinary depositors they will if deposits start to shrink

Are glanbia staying with the twice monthly payments, think the trial period is up now

Did anyone predict this time last year what the price would be for 2022?

I thought I read somewhere that the kiwis are back in milk. Whatever about price I'd say supply could be back due to all the regulations.