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Milk Price- Please read Mod note in post #1

delaval

24/6/16

Recently we saw three posters close their accounts over disagreements in the dairy threads. While there is a lot of frustration and discontent with current milk prices and the processing industry, the recent tendency for dairy threads to become tit-for-tat arguments isn’t tolerable for those not involved.

All farming sectors go through difficult periods and during such times there may need to be changes in how threads are moderated.

Dairy threads are going to be more closely monitored and subject to stricter moderation for a while.

To that end we won’t tolerate baiting of posters, constantly reviving old arguments, posters with agendas or crusading for a cause.

Whether it’s discussion of the business or politics of the dairy or other sectors, we expect civility and tolerance toward each other and other opinions as diversity of opinion is needed as a source of different ways of looking at a situation.

"The aim of argument, or of discussion, should not be victory, but progress." - Joseph Joubert

Also please be aware that what you may post as light-hearted banter can be read totally differently by someone adversely affected by the subject matter and evoke a reaction you hadn’t intended.

The ‘Off-Season’ forum, and its anonymous posting, is available for anyone to chat about their situation.

The Mod Team.

I was wondering would it be a help if we posted our milk prices. I would hope that if someone is low that help could be given, on the other hand if high perhaps your tips could help us all.

I would suggest posting your processors base inc Vat for comparison
Post your Nett price for others to help or be helped
I think that solids should be included.
I suggest any seasonal/liquid contract price be excluded or seperated.

I feel that we as farmers do a lot of bitching about processor prices and rightly so IMO. I also feel that we should not worry about it as we can do nothing about base price but we certainly do something about it at farm level.

What do you all think?

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Comments

kowtow

Buford T. Justice V wrote: »

The value added dividend in Kerry is paid out by the PLC while the farmers are paid commodity prices for their product from which the value added is derived.

Whats the Kerry price likely to be without the dividend?

mahoney_j

jaymla627 wrote: »

I have nearly six grand put towards belview at this stage after today's cuts, but I shouldn't be complaining I'm going to get shares in lieu of it, it's like a lad pissing on your cornflakes and telling you its milk

Lol

mf240

There seems to be an awfull lot of cushy jobs appearing in glanbia at the moment. Id imagine there is plenty of fat to be trimed inside their own gate, that would allow them to pay a better price. But its handier to just take money out of farmers pockets.

Buford T. Justice XIX

kowtow wrote: »

Whats the Kerry price likely to be without the dividend?

Kerrys price is the leading milk price on a like-for-like basis!*

*Probably a cent below the average milk price, going by previous history of targeting 8-9th place in the league and succeeding:pac:

kevthegaff

Me thinks the cookie jar is empty

mf240

kevthegaff wrote: »

Me thinks the cookie jar is empty

I think some of the bigger boys ate the cookies.

frazzledhome

Greengrass1 wrote: »

http://www.farmersjournal.ie/glanbia-cuts-base-milk-price-by-1c-l-for-july-187599/
Second last paragraph. Is that saying any suppliers that didn't get bonuses will get everything they would have gotten when they become a member

I didn't open link but any one who buys shares when trading opens will have top ups back dated and 3 yrs to pay for shares.

They will be selling at €5/share with priority for existing non shared suppliers.

Mad4simmental

Anyone hear about glanbia going to shutdown belview for two months? No market for their powder. From the horses mouth so it's not a bullsh!t.

frazzledhome

kevthegaff wrote: »

Me thinks the cookie jar is empty

€50m left in cookie jar. I'd be very concerned for price this coming spring. Looks like we haven't hit the bottom yet but I'm reading that Americans are beginning to feel the pinch at farm level.

Milked out

Mad4simmental wrote: »

Anyone hear about glanbia going to shutdown belview for two months? No market for their powder. From the horses mouth so it's not a bullsh!t.

Haven't heard anything like that, have heard rumours of carbery renting warehousea to store powder, dunno how truthful it is

frazzledhome

Mad4simmental wrote: »

Anyone hear about glanbia going to shutdown belview for two months? No market for their powder. From the horses mouth so it's not a bullsh!t.

One dryer shut down a few weeks at this stage. Peak is over, simple. All plants are processing less milk every day at this stage. Bellview will always be closing for a period each year as do most plants as very few products can be made from late lactation winter produced milk

mf240

frazzledhome wrote: »

€50m left in cookie jar. I'd be very concerned for price this coming spring. Looks like we haven't hit the bottom yet but I'm reading that Americans are beginning to feel the pinch at farm level.

What do that translate into in cents per month. Iykwim. Is there a cent a litre in it for aug / sept ect?

Blackgrass

frazzledhome wrote: »

€50m left in cookie jar. I'd be very concerned for price this coming spring. Looks like we haven't hit the bottom yet but I'm reading that Americans are beginning to feel the pinch at farm level.

Is this a time you cut out the 'weedy' cows or try spread fixed cost over as much milk as possible so long as variable doesnt wipe out the savings or more a case of where you are at your own farm level?

frazzledhome

Blackgrass wrote: »

Is this a time you cut out the 'weedy' cows or try spread fixed cost over as much milk as possible so long as variable doesnt wipe out the savings or more a case of where you are at your own farm level?

+1
Perfect time to cull the bottom 20% of your herd. Cull price good. It's now you need to be most efficient.

Milked out

http://theglobaldairy.com/noticias/some-good-dairy-news-at-last-signs-of-market-rebound-next-week-43758/
ðŸ˜’

Milked out

frazzledhome wrote: »

+1
Perfect time to cull the bottom 20% of your herd. Cull price good. It's now you need to be most efficient.

Would u cull and and add x amount or hold fire. I know it depends on each lads circumstance. Would like to cull a good number and replace here but the way things are looking cash flow would be tight if cull money goes back out. Could milk on empties and culls but if end up being locked up after herd test in sep it would be a bollix if couldn't get rid when they're done in parlour

frazzledhome

mf240 wrote: »

What do that translate into in cents per month. Iykwim. Is there a cent a litre in it for aug / sept ect?

I can't say for certain if it'll be paid but imagine it will need to be. Having said that there's little point milking in cows at a shyte price collecting 1/1.5c bonus' when it'll be needed next spring.

Give or take GIIL will process 1.8 billion litres so it wouldn't last too long

frazzledhome

Milked out wrote: »

Would u cull and and add x amount or hold fire. I know it depends on each lads circumstance. Would like to cull a good number and replace here but the way things are looking cash flow would be tight if cull money goes back out. Could milk on empties and culls but if end up being locked up after herd test in sep it would be a bollix if couldn't get rid when they're done in parlour

Personally we're not dropping numbers but are adding 18% more cows by upping SR. It's been our plan for some time and we have the stick to do it.

Cull cows are a good trade now though I think they're falling back at this stage. I can't see any point in carrying empties to be culled or cull cows any longer. The one exception being that you milk for hi solid milk and cull in Jan as they'd have been fed well.

If I was in a high risk TB area, in test and had culls to sell I'd be blooding and getting to the mart with them.

mf240

Ill be milking them anyway.

Id prefer to see it left there till next year . Its a fair sh1t price though even with the top up its less than the other co ops.

Sam Kade

They say average costs are 26c/litre unless farmers are heavily borrowed that can't be true. If they borrowed with the hope of milk staying above that price they would be living in dreamland. Costs around here are nearer 18-19c/litre.

jaymla627

Sam Kade wrote: »

They say average costs are 26c/litre unless farmers are heavily borrowed that can't be true. If they borrowed with the hope of milk staying above that price they would be living in dreamland. Costs around here are nearer 18-19c/litre.

Would love to see your costings behind 18-19 cent /litre obviously all labour costs are excluded along with intrest/capital repayments our is their alot of bachelor farmers in your area still living with their ma milking 50 cows in a 6 unit parlour and the whole place falling down around them, to put it in perspective a farmer sending half a million litres this year delivered if he took 5 cent a litre as wages would come out with 25,000 gross your telling me the majority of dairy farmers in your area are able to produce milk for 13-14 cent a litre all in when a minor labour charge has been taken out

WheatenBriar

Sam Kade wrote: »

They say average costs are 26c/litre unless farmers are heavily borrowed that can't be true. If they borrowed with the hope of milk staying above that price they would be living in dreamland. Costs around here are nearer 18-19c/litre.

I never believe what anyone says here or elsewhere when it comes to money but you can be pretty darn sure that anyone saying they are making money at 25c a litre are lying
New entrants if borrowed are making serious losses at that,whilst others are eating into their reserves
Theres no point sugar coating it

As for GII,36c paid by aldi in the UK from next week...
The money to pay a decent return for work done by farmers is there,its just here in Ireland... well you know..

mahoney_j

WheatenBriar wrote: »

I never believe what anyone says here or elsewhere when it comes to money but you can be pretty darn sure that anyone saying they are making money at 25c a litre are lying
New entrants if borrowed are making serious losses at that,whilst others are eating into their reserves
Theres no point sugar coating it

As for GII,36c paid by aldi in the UK from next week...
The money to pay a decent return for work done by farmers is there,its just here in Ireland... well you know..

Tegasc or anyone else wuoting figures of 18/19 cent cop for milk are neither doing themselves or anyone else any favours .average costs are 26/28 cent excluding labour cost,drawings ,and capital and interest repayments .once these are included costs are north of 30 cent

Greengrass1

mahoney_j wrote: »

Tegasc or anyone else wuoting figures of 18/19 cent cop for milk are neither doing themselves or anyone else any favours .average costs are 26/28 cent excluding labour cost,drawings ,and capital and interest repayments .once these are included costs are north of 30 cent

26c seems high mj if it doesn't include repayments imo. Most should be around 20-23 cop ex drawings labour repayments interest etc.
Agree though thst most do need 30c though

mahoney_j

Greengrass1 wrote: »

26c seems high mj if it doesn't include repayments imo. Most should be around 20-23 cop ex drawings labour repayments interest etc.
Agree though thst most do need 30c though

I would consider 26 to be average,18/19 just fantasy stuff that has no place been quoted anywhere

Greengrass1

mahoney_j wrote: »

I would consider 26 to be average,18/19 just fantasy stuff that has no place been quoted anywhere

What does that 26c include? That's high imo if we're just talking about bare cop to get the milk not including loans etc

Milked out

Depends on the repayments wouldn't it, if a parlour or machinery or building it will be written off against the business so they would be included, whereas with land only the interest is allowable so the capital wouldn't be included as that most be paid by post tax profits. The average debt is low in the country but massive variances between farms. Either way if for nothing other than to include a figure if the average industrial wage was included as a wage figure for the farmer by teagasc or whoever it would be more realistic. Saying it costs x amount to produce a litre of milk without including a wage is pointless

mahoney_j

Greengrass1 wrote: »

What does that 26c include? That's high imo if we're just talking about bare cop to get the milk not including loans etc

All farm running costs ,machinery running costs ,fertliser reseeding ,contracting purchased feed etc etc

mahoney_j

Milked out wrote: »

Depends on the repayments wouldn't it, if a parlour or machinery or building it will be written off against the business so they would be included, whereas with land only the interest is allowable so the capital wouldn't be included as that most be paid by post tax profits. The average debt is low in the country but massive variances between farms. Either way if for nothing other than to include a figure if the average industrial wage was included as a wage figure for the farmer by teagasc or whoever it would be more realistic. Saying it costs x amount to produce a litre of milk without including a wage is pointless

100% agree cows won't milk themselves .not including labour cost or land charge is totally skewing the figures

Timmaay

frazzledhome wrote: »

One dryer shut down a few weeks at this stage. Peak is over, simple. All plants are processing less milk every day at this stage. Bellview will always be closing for a period each year as do most plants as very few products can be made from late lactation winter produced milk

further to this Xmas the perfect time to close it, and avoid expensive overtime labour costs.