Milk Price- Please read Mod note in post #1

Brown Podzol · 04-10-2015 01:20PM

Dawggone wrote: »

+1. High earner!

I pay myself weakly.

kowtow · 04-10-2015 02:22PM

atlantic mist wrote: »

The supply agreements were over the top, all that future family stuff. people were locked into quota system since the 80's. Nobody got to enjoy the freedom that brought instead we were caught up in supply agreement for next 5 year which was unwarranted considering we paid for processing facilities no bank loans etc. some call it resistance i call it business men querying a deal put in front of them

Supply agreements were brought in to secure supply for the processor so they could in turn find markets for product in advance, has that happened...no were selling on spots, we are living up to our part supplies up 10% country wide pity they didnt secure buyers the same way they secured supplies!!

"The demand will be for flatter supply to more manage the output and optimise the investments in out processing plants"

Interesting statement it was outlined at meetings from top table just wonder how much imagination is going into it? it wouldnt suit some set ups and it will suit others
i asked about keeping plants running 365 as we have cows running 365 (they dont take xmas off) as it is only way to get our supply curve flattened was told no the employees must get time off for xmas, plant shutdowns for maintenance.....no milk in dec....were either going full tilt or were taking holidays which is it? whos margin is protected to achieve this? surely if they want to achieve this over next number of years the margin of the business will have to compromise as much as we will have to, cant have unhappy stakeholders(suppliers).

It costs suppliers more to provide a flatter supply curve just like it cost the producer more not to have a flattened supply, hammering us on price to achieve this is the method i see being taken
Did the grain lads in coop hav to sign 5 year contracts, do they have to flatten their supply curve for processing or is it only the 4500 dairy lads out of the 16500 farmers in the coop

Can't thank that post enough, it's a perfect summary of the way that the original co-operative movement has been corrupted (in the pure sense of the word) by the development of in-house processing.

The subtext to all of this is "we need to control and own your milk supply for complicated reasons which you probably won't understand, but don't worry *it's for your own good* - and after all, we are your co-op".

Not only is that a deeply patronising attitude from milk buyers, but it betrays a great deal of ignorance about the purpose of a co-op.

Co-ops exist to reduce the risk of farming, by taking produce to the most competitive point of sale - not to concentrate the risk by going into business on their own account using their members money, helping themselves to generous salaries and passing what's left to the members (along with the costs when their business plans don't quite work out how they had hoped).

If you want a co-operative cheese factory, sports drink maker, or powder plant - build one next to the co-op, divvy up the shares as required and let pipe the milk they can process across - happy days! - but don't use monopoly buying power to extort capital finance from farmers, transfer virtually every risk of your business on to them, and then claim you are doing them a favour.

Edit : you rightly bring up the subject of grain. What would the tillage guys say if the co-op announced they were going to pay half price on the weighbridge for the next few years in order to build a bread making factory, take on more staff, and increase salaries and bonuses because of all the business brilliance?

alps · 04-10-2015 02:56PM

kowtow wrote: »

Can't thank that post enough, it's a perfect summary of the way that the original co-operative movement has been corrupted (in the pure sense of the word) by the development of in-house processing.

The subtext to all of this is "we need to control and own your milk supply for complicated reasons which you probably won't understand, but don't worry *it's for your own good* - and after all, we are your co-op".

Agreed 1000%....to the point where the shining light coop expected their owners to sign the following..

The society reserves the right to assign, transfer, or deal in any other manner with any or all of its rights and obligations under this agreement...

Now how scary is that....

kowtow · 04-10-2015 03:00PM

alps wrote: »

kowtow wrote: »

Can't thank that post enough, it's a perfect summary of the way that the original co-operative movement has been corrupted (in the pure sense of the word) by the development of in-house processing.

The subtext to all of this is "we need to control and own your milk supply for complicated reasons which you probably won't understand, but don't worry *it's for your own good* - and after all, we are your co-op".

Agreed 1000%....to the point where the shining light coop expected their owners to sign the following..

The society reserves the right to assign, transfer, or deal in any other manner with any or all of its rights and obligations under this agreement...

Now how scary is that....

ah.. sure it's only small print.

just try writing it as an amendment at the bottom of a milk supply agreement (replace "the society" with your name).. and then you'll find out..

boggerman1 · 06-10-2015 03:51PM

Gdt up again 9.9%.butter slight down and chedder.35000 tons offered

Milked out · 06-10-2015 04:00PM

boggerman1 wrote: »

Gdt up again 9.9%.butter slight down and chedder.35000 tons offered

How does volume offered compare to previous years?

kowtow · 06-10-2015 06:57PM

Milked out wrote: »

How does volume offered compare to previous years?

Qty was 35K as opposed to 50 & 55 at the two nearest dated auctions in 2014.

Dawggone · 06-10-2015 07:03PM

I might have forgotten to post but my crowd are paying 31cpl + vat until the new year.

mahoney_j · 06-10-2015 07:08PM

kowtow wrote: »

Qty was 35K as opposed to 50 & 55 at the two nearest dated auctions in 2014.

Million dollar question is where or what there doing with the product that isn't been traded on gdt.these increases while welcome are a bit worrying considering that uncertainty and also the fact that supply in Europe and us is still very strong .if there isn't a pull back before year end these gdt rises could fizzle out

kowtow · 06-10-2015 07:12PM

mahoney_j wrote: »

Million dollar question is where or what there doing with the product that isn't been traded on gdt.these increases while welcome are a bit worrying considering that uncertainty and also the fact that supply in Europe and us is still very strong .if there isn't a pull back before year end these gdt rises could fizzle out

Yeh... there was a bit in the journal a few weeks back suggesting that they had been shifting a lot of product below the auction price...

Interestingly there was also a detailed piece in Keith Woodfords blog (https://keithwoodford.wordpress.com/2015/10/02/fossicking-in-fonterras-annual-report/) taking apart some of the geeky detail of Fonterra's accounts and raising questions about why they increased unsold inventory

Another issue of note is the extent to which Fonterra is building inventory. The accounts show that in 2013/14, Fonterra’s NZ operations produced 138,000 tonnes more product than were sold. And in 2014/15 Fonterra produced 126,000 more tonnes of NZ product than were sold. This suggests that at 31 July 2015 there were 264,000 tonnes of additional inventory compared to the same date two years earlier.

pedigree 6 · 06-10-2015 07:15PM

mahoney_j wrote: »

Million dollar question is where or what there doing with the product that isn't been traded on gdt.these increases while welcome are a bit worrying considering that uncertainty and also the fact that supply in Europe and us is still very strong .if there isn't a pull back before year end these gdt rises could fizzle out

With milk price higher in the U.S is it cheaper to buy stock now on the auctions than direct from U.S ?

frazzledhome · 06-10-2015 07:49PM

Dawggone wrote: »

I might have forgotten to post but my crowd are paying 31cpl + vat until the new year.

Had a group of dairy farmers here today from LaRochelle. Getting 31c inc vat as base price for 3.10 p and 3.80 fat.

While very nice people and interested in what we were at they were terrified of Ireland's lower cost of production. We gave it all to them inc wages and land charge. Some of their costs were astronomical especially their feed costs per cow

They seemed to be ill informed as to the extra product being produced on their own door step instead worrying about the few tonnes extra we are producing. I think someone is distracting them with spin.

All seemed very down in the mouth and we kinda had to give them a counselling session

. Alls not rosey in their garden, me thinks.

kowtow · 06-10-2015 07:52PM

frazzledhome wrote: »

Some of their costs were astronomical especially their feed costs per cow

did you by any chance manage to pin down their feed cost / litre?

Were they all indoors / mixed / ?

frazzledhome · 06-10-2015 08:00PM

kowtow wrote: »

did you by any chance manage to pin down their feed cost / litre?

Were they all indoors / mixed / ?

7 to 10c/l for purchased concentrate Some in some out some indoor. What out door meant I don't know as translator wasn't a farmer and we may have lost bits but I got €800 per cow doing 8000 litres

Dawggone · 06-10-2015 08:02PM

frazzledhome wrote: »

Had a group of dairy farmers here today from LaRochelle. Getting 31c inc vat as base price for 3.10 p and 3.80 fat.

While very nice people and interested in what we were at they were terrified of Ireland's lower cost of production. We gave it all to them inc wages and land charge. Some of their costs were astronomical especially their feed costs per cow

They seemed to be ill informed as to the extra product being produced on their own door step instead worrying about the few tonnes extra we are producing. I think someone is distracting them with spin.

All seemed very down in the mouth and we kinda had to give them a counselling session . Alls not rosey in their garden, me thinks.

3.1p ??
What extra product ? France production is actually down yr on yr.

Were the buying in feed or what?
Robots? Indoor Ayr ?

Where the feck do you find them ?

Btw what Coop? No Coop in that locality is under 30cpl plus vat.

frazzledhome · 06-10-2015 08:02PM

Wtf is wrong with Boards? It seems to be dropping posts

frazzledhome · 06-10-2015 08:17PM

Dawggone wrote: »

3.1p ??
What extra product ? France production is actually down yr on yr.

Were the buying in feed or what?
Robots? Indoor Ayr ?

Where the feck do you find them ?

Btw what Coop? No Coop in that locality is under 30cpl plus vat.

Yea 3.1%p
Bought concentrate
Mix of indoor and other don't know about robots
I actually don't know coop. It's on a bit of paper in jeep. I'm watching Fiji about to dismantle Uraguy ATM so not going to yard to get it

Really need to edit that last sentence Savage try from Uraguy

Dawggone · 06-10-2015 08:30PM

frazzledhome wrote: »

Wtf is wrong with Boards? It seems to be dropping posts

Notification of no posts from Franc

Mad4simmental · 06-10-2015 09:33PM

WheatenBriar wrote: »

Well everybody does have the skillset to google a few good auctioneers
But if everyone did that, land price would be like the glanbia shares at the moment...down down down

Would that really be a bad thing? Bring things back to reality. How long can the land price bubble keep increasing before it bursts?

What price are banks valuing land at for security for big loans at the moment?

Dawggone · 06-10-2015 11:19PM

frazzledhome wrote: »

Yea 3.1%p
Bought concentrate
Mix of indoor and other don't know about robots
I actually don't know coop. It's on a bit of paper in jeep. I'm watching Fiji about to dismantle Uraguy ATM so not going to yard to get it

Really need to edit that last sentence Savage try from Uraguy

Get the name of Coop if you can frazzled.
Probably one of the Coop's on the mountainy/hilly area east of La Rochelle.

whelan2 · 08-10-2015 08:35PM

http://www.agriland.ie/farming-news/ireland-set-to-import-record-levels-of-milk-in-2015/?utm_content=buffer09429&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

atlantic mist · 10-10-2015 02:05PM

Usa increasing tariffs on EU butter not good news!!
suppose they thought the low price might dampen eu production they have to catch us another way, our eu policy makers are too slow to react in comparison!!

frazzledhome · 10-10-2015 03:58PM

Dawggone wrote: »

Get the name of Coop if you can frazzled.
Probably one of the Coop's on the mountainy/hilly area east of La Rochelle.

Sorry Dawg only seeing this now. Will do if I remember

Dawggone · 12-10-2015 01:08PM

Some products from my milk processor.

Dawggone · 12-10-2015 01:10PM

More.
There is another page and a half but spilled my coffee on them. It's mostly crème liquors and Milk (uht)
Plus another page and a half of yogurts and ice creams.

frazzledhome · 12-10-2015 01:51PM

Dawggone wrote: »

Get the name of Coop if you can frazzled.
Probably one of the Coop's on the mountainy/hilly area east of La Rochelle.

Laiteries Coops de Cherentes Poiton

Dawggone · 12-10-2015 03:01PM

frazzledhome wrote: »

Laiteries Coops de Cherentes Poiton

Yep I know them well.
Firstly they are paying 31cpl + vat until end of year.
Secondly they pay on a base of 3.2p and 3.8bf.

I think they may have been pulling your leg a little...:)
See 8000 liter herds are as common as 3000l herds are in Ireland. And if a farmer has a herd like that they don't admit to it. The lowest is about 9k liters.

Now they also said that they were feeding €800 to €1000 per cow.
Being a maize based diet the only feed they need is protein to balance. There are no nuts or concentrates here. Everyone feeds a 50/50 protein of soya and full fat rape for a good reason. I am buying that at less than €300/ton, and it's 40%p. Even if they are paying €330/ton it works out at over 8kg/hd/day for the whole 305 day lactation!

If they are buying in maize and have no land it may be possible to spend that kind of money on feed...La Rochelle is in a very intensive tillage area and has a large port where a lot of maize and wheat are exported.

bogman_bass · 12-10-2015 05:23PM

Dawggone wrote: »

More.
There is another page and a half but spilled my coffee on them. It's mostly crème liquors and Milk (uht)
Plus another page and a half of yogurts and ice creams.

What is "Tomme Chevere Chambrille"? and @€;20k per tonne can we produce it here?

Dawggone · 12-10-2015 05:51PM

bogman_bass wrote: »

What is "Tomme Chevere Chambrille"? and @€;20k per tonne can we produce it here?

It's a goats cheese Bass.

But those are wholesale prices to shops.
It's €20.21 inc vat for 1.5kg pack.

All those products are for native consumption.

Kovu · 12-10-2015 05:53PM

bogman_bass wrote: »

What is "Tomme Chevere Chambrille"? and @€;20k per tonne can we produce it here?

I think that depends on how you feel about goats bogman

Milk Price- Please read Mod note in post #1

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