Milk Price- Please read Mod note in post #1

kowtow · 21-01-2015 09:40AM

frazzledhome wrote: »

It's on a fixed amount of milk to one customer. ... is no futures market in EU, well certainly no developed one.

That is a perfectly transparent hedge, there doesn't have to be any kind of traded market. Just a customer as you describe. In effect the co-op is ring-fencing milk from you to that customer as an agent

What you want to avoid is the co-op taking any kind of speculative position against the supplier (which is what the bank is doing in the example above)

And don't get me wrong - absolutely it is a good idea to fix some portion of the output, properly constructed and completely transparent these are badly needed tools. Its just that, in this country in particular, I can imagine a lot of damage being done with dangerous tools in greedy hands! I can think of at least one small country whose national airline ended up contracted for several years ahead to buy fuel at an oil price of >120$ barrel, locked in by it's "clever, prudent" managers during the peak oil months and ending up a basket case.

Out of interest how do they calculate input costs, particularly all that grass?

atlantic mist · 21-01-2015 10:10AM

it only allows a certain % of our supply to be fixed, if im hedging i want to be able to set amounts myself, think it will be a good tool but def needs bit more work, were workin against dairy margin protection scheme in us
as far as im aware we wouldn see an extra margin in acc for the processor fixed price scheme as it allowed their customers to lock in at set prices so the customer benefited not the processor or supplier

Timmaay · 21-01-2015 11:06AM

whelan2 wrote: »

41.61 here

Just over 40c here. Poor solids from fresh calvers didn't help at all, adds to my motivation to ditch the autumn calvers.

I got nothing in the fixed price scheme and don't plan on putting anything into it any day soon, however I would consider the current liquid milk as a glorified fixed price scheme, so that's a good enough safety net for me.

frazzledhome · 21-01-2015 11:09AM

kowtow wrote: »

That is a perfectly transparent hedge, there doesn't have to be any kind of traded market. Just a customer as you describe. In effect the co-op is ring-fencing milk from you to that customer as an agent

What you want to avoid is the co-op taking any kind of speculative position against the supplier (which is what the bank is doing in the example above)

And don't get me wrong - absolutely it is a good idea to fix some portion of the output, properly constructed and completely transparent these are badly needed tools. Its just that, in this country in particular, I can imagine a lot of damage being done with dangerous tools in greedy hands! I can think of at least one small country whose national airline ended up contracted for several years ahead to buy fuel at an oil price of >120$ barrel, locked in by it's "clever, prudent" managers during the peak oil months and ending up a basket case.

Out of interest how do they calculate input costs, particularly all that grass?

Input costs calculated based on CPI all Ag ones are used

solwhit12 · 21-01-2015 07:18PM

Dairygold base 30.06 cpl.

Greengrass1 · 23-01-2015 02:00PM

Anyone get there yearly milk recording results?
Interesting the best cows breaking the 3k in milk sales are a mixture if hol fr and je.
Some very good holiday/fr cows too hitting over 2800€ of milk sold

atlantic mist · 23-01-2015 02:11PM

where does it tell you how much they made? got our annual report from icbf and dnt c it in it

Greengrass1 · 23-01-2015 02:27PM

atlantic mist wrote: »

where does it tell you how much they made? got our annual report from icbf and dnt c it in it

Its on milk recording.
Progressive do ours don't know if other companies are doing it

loveta · 23-01-2015 04:24PM

Greengrass1 wrote: »

Its on milk recording.
Progressive do ours don't know if other companies are doing it

JUst went into icbf there progressive does mine also is it the yearly report cause mine is still only 01 jan14 up

atlantic mist · 23-01-2015 04:41PM

wit progressive ourselves, dont seem to hav our up yet but hav kingswood so just ran last year reports from icbf and income per cow came up sound gg great addition to report
few ladies surprised me, changed avg pricing from 42 to 28 it will make some diff next year:(

Deepsouthwest · 23-01-2015 09:56PM

Greengrass1 wrote: »

Anyone get there yearly milk recording results?
Interesting the best cows breaking the 3k in milk sales are a mixture if hol fr and je.
Some very good holiday/fr cows too hitting over 2800€ of milk sold

I'm with Munster, and it's on the milk recording annual report, seriously interesting reading. Must check again, but don't think I have any over the €3000 mark, but a lot of cows nearly there. Gives a whole new picture to who ur best producing cows are, it's better than litres, kgs ms or anything else, this is what it's all about.

Greengrass1 · 23-01-2015 10:08PM

Deepsouthwest wrote: »

I'm with Munster, and it's on the milk recording annual report, seriously interesting reading. Must check again, but don't think I have any over the €3000 mark, but a lot of cows nearly there. Gives a whole new picture to who ur best producing cows are, it's better than litres, kgs ms or anything else, this is what it's all about.

That cross bred that hit the 3300 was a winter milker.
Higher milk price pushed her that high I'd say.

frazzledhome · 01-02-2015 08:11PM

http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11394963

RightTurnClyde · 03-02-2015 07:10PM

Go on ya good thing ya!!!!
http://www.agriland.ie/news/major-rise-latest-global-dairy-trade-auction/

That, and the drop in the Euro...it's all good

jaymla627 · 03-02-2015 08:31PM

RightTurnClyde wrote: »

Go on ya good thing ya!!!!
http://www.agriland.ie/news/major-rise-latest-global-dairy-trade-auction/

That, and the drop in the Euro...it's all good

Milk powder dollar price converted back to euros still only comes to 33 cent a litre before processing costs, costs between 8-10 cent a litre to process milk to milk powder so 24 ish cent is the price on world markets at the minute....needs to rise realistically by another 20% before we get back into the 30s our in and around it step in the right direction all the same though...

mf240 · 03-02-2015 09:13PM

jaymla627 wrote: »

Milk powder dollar price converted back to euros still only comes to 33 cent a litre before processing costs, costs between 8-10 cent a litre to process milk to milk powder so 24 ish cent is the price on world markets at the minute....needs to rise realistically by another 20% before we get back into the 30s our in and around it step in the right direction all the same though...

milk powder is only one of the products that the likes of glanbia do. There always banging on about all the high end products that there making.

No reason for them not to hold at 30.5 in the short term to see if this recovery materialises.

jaymla627 · 03-02-2015 09:22PM

mf240 wrote: »

milk powder is only one of the products that the likes of glanbia do. There always banging on about all the high end products that there making.

No reason for them not to hold at 30.5 in the short term to see if this recovery materialises.

At the meetings they held at the end of the year it's what they where banging on about when questioned re milk price their line was that's what the gdt markets where paying and that's the market price, would be very surpirised if they held at 30.5....

leg wax · 03-02-2015 09:34PM

no one wants to be first or seen to drop milk price before april as they may lose new milk suppliers.

Deepsouthwest · 04-02-2015 01:58AM

leg wax wrote: »

no one wants to be first or seen to drop milk price before april as they may lose new milk suppliers.

I could be wrong, but don't think we'll have much of cut on milk price until April, if it was to drop under 28/29c/litre (less than the super levy fine)then farmers over quota may start dumping it. Coops def don't want that as they'll have less milk to manufacture. Super levy don't worry them.

Brown Podzol · 04-02-2015 07:14AM

Deepsouthwest wrote: »

I could be wrong, but don't think we'll have much of cut on milk price until April, if it was to drop under 28/29c/litre (less than the super levy fine)then farmers over quota may start dumping it. Coops def don't want that as they'll have less milk to manufacture. Super levy don't worry them.

I agree, but March price won't be set until well into April.

Deepsouthwest · 04-02-2015 08:15AM

Brown Podzol wrote: »

I agree, but March price won't be set until well into April.

Yeah, I was thinking about that as well, normally price is talked up or down before its set. February price will almost definitely be held, that should be enough to guarantee March's milk will be sent in.

Dawggone · 04-02-2015 08:51AM

Word from the processor here is that milk will not go under 30cpl + vat. this year.

If you can believe that.

orm0nd · 04-02-2015 10:23AM

leg wax wrote: »

no one wants to be first or seen to drop milk price before april as they may lose new milk suppliers.

I was talking to a new entrant literally within pi$$ing distance of arrabawn
the amount of canvassing & bullsh1t promises is unreal

RightTurnClyde · 04-02-2015 10:46PM

Things are stabilizing
http://ow.ly/ItoDd

whelan2 · 05-02-2015 08:44AM

is it today the glanbia egm is on?

stanflt · 05-02-2015 11:04AM

whelan2 wrote: »

is it today the glanbia egm is on?

yes 1pm in kk

i forgot about it-thanks for reminding me

freedominacup · 05-02-2015 11:40AM

stanflt wrote: »

yes 1pm in kk

i forgot about it-thanks for reminding me

Vote early and often.

WheatenBriar · 05-02-2015 06:35PM

Twas approved anyway by 92% but is it in time to be paid out on the 19th February with January's milk?

For every 100,000 gals it's worth about €2250,assuming 0.5c a litre equates to 2.25c a gal approx?

Sorry I still use shillings and pence with weights and stuff

frazzledhome · 05-02-2015 07:41PM

freedominacup wrote: »

Vote early and often.

I see a few of the usual guys in attendance. Forced a secret ballot, asked to volunteer 10 names to force one. Struggled to get 10 and then only had 25 votes in final poll

darragh_haven · 06-02-2015 12:52AM

frazzledhome wrote: »

I see a few of the usual guys in attendance. Forced a secret ballot, asked to volunteer 10 names to force one. Struggled to get 10 and then only had 25 votes in final poll

What was the reasoning behind the secret ballot (I don't understand any of the glanbia goings on) but it reminded me of the heave against charlie haughey ;-)

Milk Price- Please read Mod note in post #1

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