milk price will be sorted ….just matter of when low prices cure low prices just as high prices did same
Big worry tho is cheap grain and the supply coming out of America and the higher constituents of there milk which is adding more commodity products to an already saturated world market
Lot is made of our low cost model and the big advantage grass gives us ,think both are well overplayed
What difference does it make, we'll do what we always do. Head down arse up and drive on, cut spending and drive on and wait for the next lad to blink. No point in panicking now. Giddy up.
Just on the wider issues we all know them but I think what will also be interesting next year will be USD/EUR exchange rate. If Trump gets his Fed puppet in their central bank and their goal will be to drive down the dollar. Ireland is particularly exposed to exports to U.S from EU so another few percent of dollar now won't be pretty for exports.
We exports 90 % of productio so local prices follow world price to a greater or lesser extent
Definitely i don't think we are anything like the low cost country they were all rambling about. Maybe we could produce it reasonably cheap ten years ago but not now...… a lot of costs have doubled in that time frame
Lakeland down 3 cent good start to the year.if it does start to rise later in the year I hope they rise it 3 cent at a time doubt that though.
WWhat's Base price now ?
33.25
Fast and furious with the cuts they are, especially for winter when you'd think with less volume they could have a greater percentage moving into higher value products. Must be near a bottom now.
Tirlan hold milk price, their text they sent out is a fairytale. In fairness they're holding base price at 36.08 for a couple of months
John G Murphy told me last week that they are holding for 3 months and will review then. He would be next parish to me here.
The text says base price 41.08cpl
Jeez I'd be happy to take that given the dire predictions on here over the Christmas
Including VAT, seasonality bonus and 0.5 sustainability according to the text I got for that.
The Milk price is only 41 08 if you're a creamery supplier though.
Ok. I wasn't aware of the difference in suppliers. I'm on a manufacturing contract. Is that creamery or is liquid milk creamery.
Manufacturing is creamery. I welcome them holding the price but the text is misleading.
Where do we stand now in terms of production costs relative to the rest of the world. Most of the articles that have come up for are based around the last decade there doesn't seem to be many blowing about our competitive advantage in .recent times
Relative to the rest of the world I think costs per litre have risen equally enough throughout the globe however the big difference I see is that in the Americas and Asia it’s the scale of operations that is driving surpluses because of the very economics of scale.
and an abundance of cheap grain ….our so called advantage is over played
A mild damp climate is all we have, where grass grows and we don't get extremes of cold or heat so cows can go out and graze it.
We don't have scale and Ireland is an expensive place to do business.
Electricity, labour and price of machinery all cost more than other places. Even when feed prices are low here, they will be lower in other parts of the world.
The other major advantage of Irish dairy farms is incredibly low debt levels on farms.
Always wonder how the Dutch and Danish get on with the debt there, have they low interest rates?
Don't forget the free labour that comes from the "family farm model". That's changing as well thou, so another so-called competitive advantage is being eroded.
lifetime and inter generational debt is the short answer.
I see lakeland has held the price so hopefully thats the end of the cutting and maybe ca more positive trend emerging 🤞
Kerry 37.5 for January
arratipp base for Jan cut by 1 cent to 35.39. Inc vat and sustainability ….add 4 cent for janurary winter bonus
1 cent cut hard fathom considering other coops have held and most paying higher winter bonus …..considering weather and extra cost and work its adding bit of an own goal
Tirlan base price for January is 35.58 when you get the calculator out and decode the text they sent below.
“Tirlan January milk price 43.08 cpl incl VAT 7cpl Seasonality and 0.5cpl Sustainability. Base price unchanged.”
Weak dollar is really playing havoc to be fair, messing around on chat gtp current wmp prices at the latest gdt equate to circa 32 c/l after processing costs if dec 24 us/euro dollar exchange rate was used it would be nearer 38 c/l...
we were told that protein markets are performing much better last few months ….and we put a lot of product into value added proteins so hard see justification for a 1 cent cut when other coops have held base and also pay higher Jan bonus
I’m not so sure
The dollar is $1.18 today
It was $1.16 in December
So 1% drop in value over 40 days,it dipped to $1.20 for a day and has risen since
It’s fallen 18% roughly in a year
I think if milk price drops were at only 18%,dairy farmers would be very happy vs now
