Milk Price- Please read Mod note in post #1

pedigree 6 wrote: »

From reading that article that milked out put a link to I think the auction is only in the talks phase of setting up (if it does ever set up).

Yup, I got that impression as well. We'll have to see how it turns out.

Its actually a lot more difficult than people imagine to get a working price discovery mechansim - a market - functioning. The major stumbling block is agreeing the specification of what is to be traded, as much as we want our premium "up the value chain" products, it's impossible to use them for price discovery because they aren't homogenous. Quite literally, no good comparing apples with oranges.

Value added products also tend to be commercially sensitive so processors aren't keen to publish the prices they are trading at.

The GDT (and the parallel futures contracts) actually function pretty well considering the specialist nature of the market. If and when Europe looks to get behind a futures market we're going to have to watch out for political positioning & territorial ambition triumphing at the expense of liquidity - there's little enough volume even on the US CME contracts and they have had everything going for them for a long time.

It would be a great help if Euro contract specifications were able to be drawn to make at least some of them fungible against US or NZ lots (even if that made them a little opaque from European producers perspective) but without looking more closely I'm not sure whether that would be practical.

atlantic mist wrote: »

each producer has his own area and its up to themselves to use their branded products to provide premium returns for farmers, pity our coops/processors arent really set up for this with majority of value added products hived off into other companies, be interesting to see if gii enter or if glanbia enter

That's the bit that confused me - I don't see how it provides any transparency or price discovery - certainly to the farmer... it struck me as a highly tailored e-commerce portal more than a marketplace the way they describe it.

Nevertheless, it's all to the good - and it may well be that they want to get suppliers & customers trading across it before they start reporting prices more widely. The team behind it come from a forex / commodity trading background so they ought to know what they are at.

Those foolish farmers should have knelt in the yard in Mallow, facing that lovely new plant, giving thanks for their luck in having such wise and good betters leading their illustrious coop.
Instead they turned their backs and ran up the road to that small upstart named Arrabawn. Why the hell should they ever get their shares back. Let them tell their children and their childrens children remember forever not to snub their betters.

Very soft GDT result, not a huge fall but short of expectations.

I wonder what kind of stocks fonterra are holding at this end of the season.

Arrabawn hold price

RightTurnClyde wrote: »

For anyone interested. 7 graphs painting a picture of current supply situation
http://theglobaldairy.com/noticias/the-global-dairy-situation-in-7-charts-45684/

Most revealing graph their in a eu context is the Russian one who where taking more product from the eu prior to the trade embargo at a rate of well over 200% of what the Chinese have been importing on a seven year average
While oil price crashing would of curtailed their buying power for dairy products it wouldn't of had near the consequences as the export ban has created it's funny how the eu higher powers seemed to forget they have contributed immensely to this mess with their political stances when they where discussing what crumbs to throw down to dairy farmers at their meeting on monday

Yes, Dairygold reps visiting farmers are mentioning 22 cent.

jaymla627 wrote:

Most revealing graph their in a eu context is the Russian one who where taking more product from the eu prior to the trade embargo at a rate of well over 200% of what the Chinese have been importing on a seven year average While oil price crashing would of curtailed their buying power for dairy products it wouldn't of had near the consequences as the export ban has created it's funny how the eu higher powers seemed to forget they have contributed immensely to this mess with their political stances when they where discussing what crumbs to throw down to dairy farmers at their meeting on monday

Russian demand hasn't vanished though in a global sense.

At least part of it will be satisfied from outside EU.. and a little more from internal supply growth.

I have a feeling the Russian situation will begin to be remedied shortly, but although when it is it will be claimed by many as a political triumph I'm not sure the solving of it will be all that the dairy industry would like to think.

orm0nd wrote: »

any word of what our crowd's paying for February Kev?

we'll know soon enough i suppose

Price held

mahoney_j wrote: »

Price held

money in bank a/c to day, .. happy enough

statement 2 morro

dont have a cfi bonus on my account, similar milk price at 33c

base prices ex vat
standard milk price at 24.85c
fixed price scheme 2016 31.15c

the lads in the liquid priority pool will have done well, actually rather they didnt give me any, as the 3% we got will keep highlighting the difference between liquid and manufacturing suppliers every month:mad:

any sign of the manufacturing fixed price scheme?

heard belview is going well since re opened, problems from last year seem to be addressed, all product heading for china, not world market just china

freedominacup wrote: »

Apparently they can't get enough milk atm. Not seeing that in mp though.

For markets or to run the plant efficiently?

Mist, I'd say there is not many Fr heifers on the ground this year either. Not that many Fr bull calves in the mart. A lot of Angus and Hereford.
There is also €200/head difference in price. That's not money to be sneezed at. Would take a lot of ltrs milk to make it up. Very handy at this time of year for cash flow.