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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

djmc

I dont know if many can last that long around here at those prices.
I will be out this year if things dont pick up I can weather some bad times but wont be a slave indefinitely

jaymla627

Dawggone wrote: »

If price does drop to 20cpl for say 12 - 18 months...would you return to quota if it brought price to 30cpl?

Just asking.

If 2015 production total was used as a base year for quota referance I would gladly return to a quota system, the whole let the markets decide the price/inefficient producers will go bankrupt is deluded...
Irish producers at the minute although we mighten like to think it are high cost producers when commodities like wheat/maize/soya are at such low prices, brilliant article about American dairy farmers that showed farmers who made alot of their feed in-house where less profitable then ones who bought in all their feed our a large chunk of it,....
America with their margin over production scheme is the elephant in the room and hogan retrotic about letting the markets work threw these low prices is bull when American dairy farmers are pumping out the white stuff while being heavily subsidised doing it on top of record low feed prices

Buford T. Justice XIX

Henwin wrote: »

any idea on what Kerry are paying for March milk?

Kerry hold base price at 25c:)

Looks like some disgruntlement is having some effect.:)

But it looks bad for the 1.4c 13th payment due:mad:

whelan2

mf240 wrote: »

The only thing Glanbia are worried about is share price.

Perhaps it might be prudent to point out to them that a bunch of disgruntled farmers protesting outside their creamerys featured on the nine o clock news wouldn't be good for share price.

Perhaps they might be able to find a couple of cent a litre somewhere.

Be careful now, apparently the Glanbia rep in Nigeria doesnt like these type of comments :rolleyes:

Buford T. Justice XIX

whelan2 wrote: »

Be careful now, apparently the Glanbia rep in Nigeria doesnt like these type of comments :rolleyes:

I wonder if he sent us on his bank account details, we might be able to transfer a few cent a liter his way when the milk price rises?:pac:

stanflt

WheatenBriar wrote: »

Last month 29c at 3.3 etc from a supplier who showed me his 1 page statement

That wouldn't be a great price for liquid winter milk- sure the Glanbia avg for liquid was 34cpl

mf240

whelan2 wrote: »

Be careful now, apparently the Glanbia rep in Nigeria doesnt like these type of comments :rolleyes:

Apparently he's handing out tocaire boxes with pictures of
Irish farmers on them.

jaymla627

mf240 wrote: »

Apparently he's handing out tocaire boxes with pictures of
Irish farmers on them.

I know your joking but I reckon a large number of dairy farmers relying on it for their sole income and wife not working with say a couple of kids will probably have to apply for farm assist the way things are heading, maybe glanbia could do a workshop on this would be a lot more beneficial then touring the country rambling on about reps in Nigeria, our maybe include the paperwork for it in this month's milk statement

yosemitesam1

jaymla627 wrote: »

America with their margin over production scheme is the elephant in the room and hogan retrotic about letting the markets work threw these low prices is bull when American dairy farmers are pumping out the white stuff while being heavily subsidised doing it on top of record low feed prices

Most of their milk isn't being subsidised at the minute, less than 1% of milk in in at the $8 rate and average milk price is still above that according to the fsa website

darragh_haven

yosemitesam1 wrote: »

Most of their milk isn't being subsidised at the minute, less than 1% of milk in in at the $8 rate and average milk price is still above that according to the fsa website

I visited a farm in Tennessee in November. Just an ordinary run of the mill 90 cow farm. Between us we calculated he was getting 47 cent per litre. And that was the norm for that state.
He was sypplying a local liquid milk plant. No subsidy required on his milk price

Water John

Sorry lads in butting in on yere thread but it is closely connected to milk price and all dairy farmers concerns. See script of post, I have just put up on its own thread.
Like the Glanbia fellow concerned about Boards being read in Nigeria. Its seems others too would wish to muzzle us all.

Note re: Dairygold Expulsions, Thread on Farm & Forestry.
From OP Water John
Just a note, to let everyone know this thread has now been reinstated.
It was temporarily 'taken down', a few days ago, so that it could be checked for any defamatory comments by Boards office.
There was no intervention on this site by the Mods. This examination, obviously came about because of third party intervention.
Well best of luck to you, policing the social media.

I have not yet checked through what items may have been deleted.

Boards is an important part of social media in Ireland. People can discuss many aspects that affect them with a wide range of like minded and often not like minded people in an open way.
I am disgusted that anyone would seek to muzzle us Boardsies. Some of us are contrary and that's the beauty of it.

Farmer Ed

Water John wrote: »

Sorry lads in butting in on yere thread but it is closely connected to milk price and all dairy farmers concerns. See script of post, I have just put up on its own thread.
Like the Glanbia fellow concerned about Boards being read in Nigeria. Its seems others too would wish to muzzle us all.

Note re: Dairygold Expulsions, Thread on Farm & Forestry.
From OP Water John
Just a note, to let everyone know this thread has now been reinstated.
It was temporarily 'taken down', a few days ago, so that it could be checked for any defamatory comments by Boards office.
There was no intervention on this site by the Mods. This examination, obviously came about because of third party intervention.
Well best of luck to you, policing the social media.

I have not yet checked through what items may have been deleted.

Boards is an important part of social media in Ireland. People can discuss many aspects that affect them with a wide range of like minded and often not like minded people in an open way.
I am disgusted that anyone would seek to muzzle us Boardsies. Some of us are contrary and that's the beauty of it.

I wonder did boards get a letter with the signature of some guy who died in 1965 on it? Would love to know what that might have cost? Unbelievable stuff! How petty for any organisation to be so insecure.

Panch18

Dawggone wrote: »

If price does drop to 20cpl for say 12 - 18 months...would you return to quota if it brought price to 30cpl?

Just asking.

Haha - that's a no brainer

Of course

RightTurnClyde

Dawggone wrote: »

If price does drop to 20cpl for say 12 - 18 months...would you return to quota if it brought price to 30cpl?

Just asking.

Is that a loaded question...following you're chat with the coop manager?????
Something you're not telling us?
Ps. Same as Jay, if based on 2015, bring it on.

Dawggone

Panch18 wrote: »

Haha - that's a no brainer

Of course

How things can change...

Sadly.

freedominacup

Dawggone wrote: »

If price does drop to 20cpl for say 12 - 18 months...would you return to quota if it brought price to 30cpl?

Just asking.

No.

Dawggone

freedominacup wrote: »

No.

.
Thanks.

Why? Honest answer?

WheatenBriar

stanflt wrote: »

That wouldn't be a great price for liquid winter milk- sure the Glanbia avg for liquid was 34cpl

Aye but liquid milk is the preserve of only about a third of glanbia suppliers and most probably less than half of their supply is contract
The 29c however is topped up by solids in strathroy for those who negotiated that
Those lads are doing a lot better than us I would think
But lets not rock the boat...

freedominacup

Dawggone wrote: »

.
Thanks.

Why? Honest answer?

Do you want the long version or the short one? Short one it doesn't suit me. I'll have a bigger top line this year at twenty than last year at thirty. I'm right in the middle of an expansion plan for this farm with a bigger long term goal and quota would actually break me. My cost per litre is well down this year with an expectation that it will fall further next year.

Dawggone

freedominacup wrote: »

Do you want the long version or the short one? Short one it doesn't suit me. I'll have a bigger top line this year at twenty than last year at thirty. I'm right in the middle of an expansion plan for this farm with a bigger long term goal and quota would actually break me. My cost per litre is well down this year with an expectation that it will fall further next year.

Thanks for the short version.

Long version?

atlantic mist

i would also be saying NO to reintroduction of quotas, market price of milk rose and fell just as much during quota periods, eu supply position was consistent us and nz supply varied and thus causing period of over and under supply its a fine line between the two as is being shown now seen as eu has turned on their taps, the dust has not settled yet

our processors have taken their eye off the ball, they were consumed with building extra capacity, merger and acquisitions and spin outs and never developed strong relation ships to shift product once flood gates started

caseman

Dawggone wrote: »

Thanks for the short version.

Long version?

Grasstomilk.

freedominacup

Dawggone wrote: »

Thanks for the short version.

Long version?

Philosophical. I hate civil servants trying to control my business. I have been restricted by quotas all of my farming career with endless ways dreamed up to stop me from expanding my business whether it was based on location, or quota size or whatever certain farm politicians were having on a particular morning. What difference did it make? There are less than a quarter of the dairy farmers in this country than there was when quotas were introduced. Does anyone really think the overall situation would have been any worse if quotas had never been introduced? Anyone remember having to rent a minimum of two acres for every 1000 gals of milk you leased, basically funding some fcukers retirement for the glory of expanding at a snail's pace because all the jam was gone. The last time I was at this year's output levels I was basically paying 5c/l lease on every litre I produced as well as €120 per acre rent on every acre. 24c/l stacks up fairly well against those figures. Push hard into the back end and you won't be long pushing up the 24c. We sold over 100kg ms/cow in the last quarter of 2015. No chance to make back some losses like this with quota.

Dawggone

freedominacup wrote: »

Philosophical. I hate civil servants trying to control my business. I have been restricted by quotas all of my farming career with endless ways dreamed up to stop me from expanding my business whether it was based on location, or quota size or whatever certain farm politicians were having on a particular morning. What difference did it make? There are less than a quarter of the dairy farmers in this country than there was when quotas were introduced. Does anyone really think the overall situation would have been any worse if quotas had never been introduced? Anyone remember having to rent a minimum of two acres for every 1000 gals of milk you leased, basically funding some fcukers retirement for the glory of expanding at a snail's pace because all the jam was gone. The last time I was at this year's output levels I was basically paying 5c/l lease on every litre I produced as well as €120 per acre rent on every acre. 24c/l stacks up fairly well against those figures. Push hard into the back end and you won't be long pushing up the 24c. We sold over 100kg ms/cow in the last quarter of 2015. No chance to make back some losses like this with quota.

Thanks Free.

'Expanding at a snails pace because all the jam was gone'...

I remember when every year for decades wheat made good money. For the last three years it's been in the doldrums. Equivalent to ~ 14cpl now and next year could be worse.
Commodity milk could very well follow those kind of cycles. So at 20cpl in 2018, expansion would be simple...in fact Coops could be calling, like here, looking for your milk so as to fill contracts.

No doom and gloom, just, like, that's the way it is!
Upside is opportunities will abound.

Edit. I've only got 125acres of commodity wheat now. All bread varieties...

st1979

atlantic mist wrote:

our processors have taken their eye off the ball, they were consumed with building extra capacity, merger and acquisitions and spin outs and never developed strong relation ships to shift product once flood gates started

That's total crap there. No processor is throwing milk away. So they have the customers to shift the product. Problem is no customer is going to pay substantially more than the market.
Would you on your farm. Fert prices have dropped grain prices have dropped. Do you not take advantage of that.
Our customers don't really care if milk is a bit dear or a bit cheap. But they are not going to pay much more than market price or they won't be competitive with their competitor's.

darragh_haven

st1979 wrote: »

That's total crap there. No processor is throwing milk away. So they have the customers to shift the product. Problem is no customer is going to pay substantially more than the market.
Would you on your farm. Fert prices have dropped grain prices have dropped. Do you not take advantage of that.
Our customers don't really care if milk is a bit dear or a bit cheap. But they are not going to pay much more than market price or they won't be competitive with their competitor's.

Last week a processor in Ireland didn't exactly throw away milk, but they did sell it on for 2 cent a litre. This was after they removed the cream which was valued at 10 cent approx.
So to say they have customers for everything is incorrect. They have customers for what they budgeted for but excess milk is a loss maker for them. And that affects the price of all milk.

RightTurnClyde

st1979 wrote: »

That's total crap there. No processor is throwing milk away. So they have the customers to shift the product. Problem is no customer is going to pay substantially more than the market.
Would you on your farm. Fert prices have dropped grain prices have dropped. Do you not take advantage of that.
Our customers don't really care if milk is a bit dear or a bit cheap. But they are not going to pay much more than market price or they won't be competitive with their competitor's.

Dutch farmers are able to get a premium on their milk if they produce "meadow milk". All that's needed is 6 hours X 120 days on grass. Meanwhile our milk is being turned into powder and fed to dogs. Sloppy R&D and marketing by our coops.
Pity they don't change the focus from low value "race to the bottom" products and look to the customers instead.
(Eg All Bulmers had to do was produce pictures of a pint glass with ice in it and condensation running down the side of it, to quadruple their share price. )

mahoney_j

Arrabawn price 24.68!vat inc .down 1.2 cent

keep going

Dawggone wrote: »

If price does drop to 20cpl for say 12 - 18 months...would you return to quota if it brought price to 30cpl?

Just asking.

never.started here with 8 k gallons of quota and in west cork that was a death sentence as a far as milking was concerned.im not sure how things are going to pan out for me after buying land and the price of milk falling but at least i can fight without one hand tied behind my back and carrying another fella on my back.if ill go down its because i couldnt make a go of it not because of what my father did in the quota years

Dawggone

keep going wrote: »

never.started here with 8 k gallons of quota and in west cork that was a death sentence as a far as milking was concerned.im not sure how things are going to pan out for me after buying land and the price of milk falling but at least i can fight without one hand tied behind my back and carrying another fella on my back.if ill go down its because i couldnt make a go of it not because of what my father did in the quota years

+1. Excellent post! Fair dues.