I’ve no doubt he didn’t but even at half for that number of cows there was easier ways to make the jump in numbers when it wasn’t all that drastic. The comfort would of the setup would be nice no doubt though.
Well he might not have borrowed it all. I wouldn't take the risk myself though
You wouldn't get the sniff of land at 4/5k per cow these days!
I wish him all the best and would hate to see him fail but rome wasn’t built in a day springs to mind and you could hardly be advising anyway entering farming to be borrowing 4/5k+ per cow even to buy land not to mind build a yard.
You'd be on a road to nowhere with 60 cows these days to be fair. If you are already in your system and have no major expense then it might see you out, but I wouldn't like to be settling on 60 cows in my 20's and hoping that will see me out to retirement. It's sad, but reality. That said, 750k seems a bit out of proportion to be spending in one go. Two robots and a new shed though and you'd be a long way towards it. I'm guessing he did something like that? He might have looked at it as saving a labour unit if he has something else going on the side.
If it works out, he's a smart man who was brave enough to do it. If it doesn't, he's an eejit. Hindsight is 20:20 vision.
I remember your man Daragh McCullough having an article in the paper years ago about 80 acres of land that his father lost to the banks in the 80's. He was making the point that even though he drives by it every day, it doesn't bother him. He also said in the article that his father came from somewhere else to buy their farm back in the 50's or 60's and he planted it with spuds and the first year was such a bumper year that he made his money back in that year.
There is no helping some people though, I have a relation late 20s took over the home place 18 months ago. He had worked across 2/3 established large herds in the county which I think gave him ideas. Went home and has sunk 3/4 of a million into a state of the art setup to go from 60 cows to 100 that is complete lunacy I hope for him he had a lot of that backed from his parents. That sort of investment will never leave a return and I doubt his story is a one off around the country.
Are we even a year since we had posters explaining why dairy men should be paying at least 500 an acre to passive landowners for the pleasure of working that ground?
You would have to feel sorry for lads who were starting out and put in big money and locked in high price long term leases to hit some sort of scale.
Praying for some sort of miracle uplift in global prices and for that to be actually filtered in here
If you’re not counting your own labour you’d be talking 35-40k profit at that margin on a 100 cow run of the mill herd…there would be a lot calling it a day in 2025 if that was the case. That’s a brutal return for the work involved.
unfortunately dg board are determined to cut by 2. they must have made some slip up sales wise during the yr that's not being admitted to. watch this space .
If price does pick up in 2024, would a 6-7c/litre margin be realistic again?
If the loan repayments weren’t too high I mean.
All the indications are that they all want milk circa 30 or below by end of year …..real life is starting to come into markets again ….albeit from a low base ….real pressure needs to be put on board members to use there influence to hold milk prices now …..I’d be fully expecting a rebound by time we start again early next year
Wmp nearly back over the 3k mark, you'd hope it will put a floor under current prices here, if the lower paying co-ops push through another 2-3 cent of Sept milk they'll destroy lads confidence altogether heading into the winter
Good to see 4.4 % rise in gdt today
These trips are organized 6-12 months in advance. It's hard to cancel them when commited and 40-60% of the funding is commitment flight's and accommodation
It's probably once in a term junket
I think the optics don't look great to be honest if its true. big difference between this yr and last year. we will see what happens
What is Bord Bia and ornua for??? Board is there to fight for the best price for the suppliers.
Areabawn board were there last year ….nonissue with it nor should you with your board ….albeit timing this year with all the cuts isn’t good …these trips don’t happen every year
I’m fairly confident it’s in the pipeline. If it does come to fruition it surely time for us as dairy farmers to wake up and challenge this!!!
Now is not the time to be looking for new markets, they should have been at that ages ago.
anyway tipp coop paid 35 this month.
they would hardly drop 2 cent and go on a junket to new zealand as well?
doubt if dairygold would be that disconnected from reality.
dairygold have another 2cents earmarked for next month I believe. I also believe that the board are going on an all expenses paid holiday to New Zealand to explore markets. The home of milk production and they are going exploring dairy markets. Now that is a joke and the price of my milk being sold for under the cost of production!!
We are not in any of them here but they have a use in theory for anyone who has a lot of fixed outgoings and who could not survive the shock of a bad year. Locking in a portion at a set price could reduce that risk
It is effectively an expensive form of insurance
5+ years ago I pointed out on F&F that there is no advantage to FP schemes and that was before we knew about hidden clauses like the sub 38 cent by Tirlan. There is never an upper price get out of jail clause.
As my mother used to say ''fool me once shame on you fool me twice shame on me''.
The society reserves the right to asign or transfer, or deal in any other manner, with any or all of its rights or obligations under this agreement.
The classic MSA clause...
Lads should remember the lads who write these contracts are doing similar day in day out. They will put in clauses that suit themselves all the time.
Fixed milk contracts are a con wean yourselves off them. Remember during the noughties upwards only rent reviews. If a contract is longer than 100 words it's not to your advantage
its good news
slight worry is the new zeland production has been shifted from powder into cheddar to target the uk market to compete against us, cheddar might tumble a bit more
tirlan suplier
the small print was the "customer" can drop contract at any point of their choosing not us....i need to become one of their customers not suppliers, imagine getting those terms in a contract
the original support offer from "customer" was increase in price from 30/31.5c/32/l depending on contract to 38c/l on volumes over 35% fixed, provided you gave back same volume at 38c this year and next, but first 35% had to be at 32c/l for this year, then the cap scheme came out cancelled contract for 38c for anything over 35%
Tirlain supplier? That was in the small print that they could drop the price if prices fell below 38 cent, if I remember correctly
fixed milk price scheme is down 6c/l year to date based on my milk statements
no issue cancelling any "excess" provided i could be shown there was no internal contracts involved, who know who supported who last year
Reason to be optimistic?
https://www.globaldairytrade.info/en/product-results/
