Milk Price- Please read Mod note in post #1

mahoney_j · 17-10-2015 04:29PM

RightTurnClyde wrote: »

If there was no contracts out there or you were contract free, what would people's coop of choice be?

West cork boys paying great price atm !!!!!,good question though most of rest of our coops seem to be a lot more heavily dependant on smp and wmp .in Arrabawn we were promised of great times ahead with no Msa ,gas knocking 1.5 cent per ltre from our cost base and a much stronger milk price than our usual bottom of the pile price ,sadly all above already broken

Milked out · 17-10-2015 04:31PM

While rightly being annoyed at the disparity between coop s, I dont think we would want to end up the route of some English and American suppliers and end up not having a buyer for the milk or having a large proportion at a very low price due to swooping and changing. Right now id say we would all want to be In carbery going on its performance. Maybe trixi or someone could explain what the story was over in england there but have read of a few American farmers being left with no one taking there milk

hurling_lad · 17-10-2015 04:32PM

yosemitesam1 wrote: »

Does anyone know how the co-ops product mix changed over the 30 years of qoutas or did it stay similar?

One thing that must have changed is whey which was probably being fed to pigs in 1984.

On the whole though, I doubt that there was any major movement - the drive to produce WMP, baby formula and the like only happened in recent years so the balance between butter, cheese, skim powder and other powders was probably steady for most of the milk quota era.

keep going · 17-10-2015 04:37PM

My understanding is glanbia invested with the view to exporting milk powder to china which has now go e south, protesting , dumping slurry , sacking the board or leaving for that matter isnt going to change milk price one bit.

RightTurnClyde · 17-10-2015 04:40PM

mahoney_j wrote: »

West cork boys paying great price atm !!!!!,good question though most of rest of our coops seem to be a lot more heavily dependant on smp and wmp .in Arrabawn we were promised of great times ahead with no Msa ,gas knocking 1.5 cent per ltre from our cost base and a much stronger milk price than our usual bottom of the pile price ,sadly all above already broken

What do ye make of Tipp coop. Don't ever hear too many complains against them around here.

Cow Porter · 17-10-2015 04:53PM

Carbery price will be set next week as far as i know. Some have said that as most of the milk goes to cheese then price may fall later and be slower to rise. But given product mix of carbery hopefully they can hold it. Don't think they are canvassing for any outside milk, probably cos of politics more than anything and maybe giving its current suppliers the chance to up their supply to match shareholding

the other reason why west cork is in top division is cos the soilds are that bit higher overall and so leads to an avg higher price so have to take that into account too.

mahoney_j · 17-10-2015 04:53PM

RightTurnClyde wrote: »

What do ye make of Tipp coop. Don't ever hear too many complains against them around here.

Much of a muchness with Arrabawn only much smaller ,

whelan2 · 17-10-2015 05:58PM

wats the craic wrote: »

they never had the contracts in the first place thats the problem . they built it thinking they would have in the future as usual farmers have to carry the can not board members . and i thought wexford was badly run gil takes the biscuit altogether

At the meetings before the vote a few years ago we were told dont worry about the markets, you supply the milk, there are endless markets out there:cool:

Dawggone · 17-10-2015 06:15PM

RightTurnClyde wrote: »

It's very easy, basically 3 glanbia execs went out to China. Went out to dinner , cracked open 3 fortune cookies and came home with a business plan.
- Live horse and you'll get grass
- Build it and they will come
- easy spend someone else's money.

And so Belview, producing powder for the Chinese market at 25c/l was born.

LOL Clyde!!

What about the coke/ hookers and bukkake??

:)

Dawggone · 17-10-2015 06:16PM

yosemitesam1 wrote: »

Does anyone know how the co-ops product mix changed over the 30 years of qoutas or did it stay similar?

Excellent question.

mahoney_j · 17-10-2015 06:29PM

Dawggone wrote: »

LOL Clyde!!

What about the coke/ hookers and bukkake?? :)

Bukkake jaysus dwag ,had to google that .....interesting!!!!

Dawggone · 17-10-2015 06:49PM

whelan2 wrote: »

At the meetings before the vote a few years ago we were told dont worry about the markets, you supply the milk, there are endless markets out there:cool:

I have to admire your ability to ping it Whelan!

Imo after 31yrs of laissez faire you tend to lose your edge. Nobody on here (and in the industry!) was sharp enough to see the wood for the trees.
We can bang on about premium products but many years of stagnation are now showing....the lack of sharpness and know how, and tradition are obvious.

Methinks that quota made farmers comfortable and cushioned, but far worse it made the industry lazy and lacking in ambition.

We (Irish) tend to tear into the next new buzz/fad/ bubble without thought...the Germans/Dutch/French would put a lot more thought and planning into major moves or changes in direction.

My thinking is that EU quotas played into the hands of the Kiwis (All Blacks!

) but they dropped the ball by going down the route of low cost commodities. All is not lost...:)

Off now to cheer Les Bleus!!

RightTurnClyde · 17-10-2015 08:36PM

Dawggone wrote: »

LOL Clyde!!

What about the coke/ hookers and bukkake?? :)

:):)
Ya, why else do you think fellas wants to get onto the board.

kowtow · 17-10-2015 09:19PM

Beginning to think Glanbia waited till the last of the slurry was out to announce the price drop.

Just one small point - GIIL are getting it in the neck, probably fairly, but AFAIK it's the only coop which has been transparent about price support.

If the others are paying 4c more, but with shareholders funds, we'd be equally angry no doubt. Not least because it would inevitably run out.

Not saying they are, but it would be nice to know.

freedominacup · 17-10-2015 10:50PM

kowtow wrote: »

Not saying they are, but it would be nice to know.

Would this be classed as a known unknown or an unknown unknown?

darragh_haven · 17-10-2015 10:54PM

freedominacup wrote: »

Would this be classed as a known unknown or an unknown unknown?

It's a known unknown. ..... but those that know aren't going to tell you

WheatenBriar · 17-10-2015 11:40PM

kowtow wrote: »

.

If the others are paying 4c more, but with shareholders funds, we'd be equally angry no doubt. Not least because it would inevitably run out.

Not saying they are, but it would be nice to know.

Strathroy are holding a higher milk price at the expense of their margin and in favour of farmers margin
My neighbours are getting circa €90+ per every 1000 gallons they supply base price more than me
There is no doubt about that and there is no lack of transparency about that situation
Little old strathroy vs giant glanbia

Regarding the suggestion that other co op's are using shareholders funds to sub milk price, thats not possible surely without a member vote so Iike strathroy, it has to be from their own margin

kowtow · 18-10-2015 02:30AM

WheatenBriar wrote:

Regarding the suggestion that other co op's are using shareholders funds to sub milk price, thats not possible surely without a member vote so Iike strathroy, it has to be from their own margin

Bear in mind that what you refer to as "their margin" is or will become part of shareholders funds unless the management have a way to waste it or pay it to themselves.

In general I'd include reserves and retained profits when I refer to shareholders funds so I doubt you'd need to vote to spend them but might depend on individual constitution..

what we want to see is a high sales figure per litre, and a high percentage of that paid out in the milk price of the current period. One suggests good product mix and the other efficiency.

20silkcut · 18-10-2015 07:55AM

kowtow wrote: »

Beginning to think Glanbia waited till the last of the slurry was out to announce the price drop.

Just one small point - GIIL are getting it in the neck, probably fairly, but AFAIK it's the only coop which has been transparent about price support.

If the others are paying 4c more, but with shareholders funds, we'd be equally angry no doubt. Not least because it would inevitably run out.

Not saying they are, but it would be nice to know.

I am a dry stock man myself so my only interaction with glanbia is buying meal/fert etc. But they have the worst credit terms of all the co-ops I deal with, and are the ONLY ones who send out suspension of credit letters and threaten to hand over to collection agency's.

None of the other Co-ops behave like that .

In saying that though when I do ring the glanbia office and explain that I am waiting on an Anc/bps payment to clear the account they do back off. But their first reaction is aggression.

WheatenBriar · 18-10-2015 08:29AM

kowtow wrote: »

Bear in mind that what you refer to as "their margin" is or will become part of shareholders funds unless the management have a way to waste it or pay it to themselves.

In general I'd include reserves and retained profits when I refer to shareholders funds so I doubt you'd need to vote to spend them but might depend on individual constitution..

what we want to see is a high sales figure per litre, and a high percentage of that paid out in the milk price of the current period. One suggests good product mix and the other efficiency.

To be fair,Strathroy are behaving more like a Co op towards their suppliers than Glanbia

With respect, your comment that any reduction in margin from glanbia is shareholders funds is nonsense
The fact is,the board have and always have the right to decide margin and in doing so the level of deference to suppliers situations

RightTurnClyde · 18-10-2015 08:42AM

WheatenBriar wrote: »

To be fair,Strathroy are behaving more like a Co op towards their suppliers than Glanbia

The fact is,the board have and always have the right to decide margin and in doing so the level of deference to suppliers situations

Hats off to Strathroy, it's early days yet but they are really proving themselves to the doubters.

On margin, that's my thinking too, is that not one of the differences between coop and Plc.

kevthegaff · 18-10-2015 08:57AM

In bad years co ops get more efficient decreasing labour, but then a few good years all the good work is undone with new facilities, increase in labour, director, shareholders bonuses, dividents. I notice even in the arrabawn lab, many new young staff hired in the last year

kowtow · 18-10-2015 10:43AM

The margin made by a co-op .. or any business actually. . is where the shareholders funds originate (except to the extent that management can waste it or spend it) .. which I think is what I said above?

Edit: I thought we were talking about other coops here but if by "their margin" you mean the price paid to GIIL by Glanbia and by GIIL to the Glanbia co-operative then of course the shareholders include those of the plc.

Dawggone · 18-10-2015 10:45AM

I had a manager from my Coop here recently and I asked him why they don't sell any feed/fert/Agri materials. He said that it was in their charter that they could only process milk...is that a good or bad thing?

kowtow · 18-10-2015 10:56AM

Dawggone wrote:

I had a manager from my Coop here recently and I asked him why they don't sell any feed/fert/Agri materials. He said that it was in their charter that they could only process milk...is that a good or bad thing?

Good question.

If the co-op can improve margins for both tillage producers and say dairy grain consumers by transferring grains between them then it is surely a good thing.

Problem comes when co-ops go off on a frolic turning themselves into a poor version of Woodies.

Mulumpy · 18-10-2015 11:41AM

kevthegaff wrote:

In bad years co ops get more efficient decreasing labour, but then a few good years all the good work is undone with new facilities, increase in labour, director, shareholders bonuses, dividents. I notice even in the arrabawn lab, many new young staff hired in the last year

They all students Kev only get a couple of months and gone again. Any extra staff brought in other areas is because nearly all areas gone to 24hr production. Staffing levels are actually too low In Arrabawn. It's the ridiculous amount of managers there now is the problem.

WheatenBriar · 18-10-2015 12:37PM

kowtow wrote: »

The margin made by a co-op .. or any business actually. . is where the shareholders funds originate (except to the extent that management can waste it or spend it) .. which I think is what I said above?

Edit: I thought we were talking about other coops here but if by "their margin" you mean the price paid to GIIL by Glanbia and by GIIL to the Glanbia co-operative then of course the shareholders include those of the plc.

Aye,but the majority of board members in both GIIL and even the plc,represent farmer members still but ignore them,the margin on the small percentage of business that is milk in their outfit being more important than the farmer member

No owner in Strathroy represents farmers yet they protect them,without fear
Says it all really

Sam Kade · 18-10-2015 01:38PM

20silkcut wrote: »

I am a dry stock man myself so my only interaction with glanbia is buying meal/fert etc. But they have the worst credit terms of all the co-ops I deal with, and are the ONLY ones who send out suspension of credit letters and threaten to hand over to collection agency's.

None of the other Co-ops behave like that .

In saying that though when I do ring the glanbia office and explain that I am waiting on an Anc/bps payment to clear the account they do back off. But their first reaction is aggression.

They aren't alone there.

wats the craic · 18-10-2015 01:51PM

WheatenBriar wrote: »

Aye,but the majority of board members in both GIIL and even the plc,represent farmer members still but ignore them,the margin on the small percentage of business that is milk in their outfit being more important than the farmer member

No owner in Strathroy represents farmers yet they protect them,without fear
Says it all really

yes but the owners of strathroy are dairy farmers themselves as one of the brothers run two dairy farms of their own , that makes the diff

visatorro · 18-10-2015 02:06PM

Mulumpy wrote: »

They all students Kev only get a couple of months and gone again. Any extra staff brought in other areas is because nearly all areas gone to 24hr production. Staffing levels are actually too low In Arrabawn. It's the ridiculous amount of managers there now is the problem.

but sure look at the work those managers are doin!!
that's what wrong with every badly run company, too many lads passing the buck and not taking responsibility. safety in numbers mentality, its a culture that's very hard to get rid of

Milk Price- Please read Mod note in post #1

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