Milk Price III

Keepgrowing wrote: »

Point of info only about 10% of our cows are Jex. Mostly Kiwi x here, very hard to find good Jersey Bulls IMO

How does the kiwi cross go on the hol? WOULD you be better straight jersey with hol?

freedominacup wrote: »

I know it's too late now but I was thinking about our much vaunted top up from glanbia over the past year. Something was bugging me about it all along and then I had a conversation with our area chairman last week. He was talking about further spinouts and how ebita was going to effect any future purchase price for gii, ie the higher the ebita over a number of years the harder we'll be screwed when our board members spread their cheeks on the purchase price. With that in mind why wasn't GII paying us directly with the co-op making up the losses with a direct capital injection. This would have had two long term benefits for us imo. Firstly GII's ebita drops and the price we'll be forced to pay drops. Secondly if the capital was introduced in the correct manner glanbia plcs shareholding in GII is reduced unless they introduce a similar amount of cash pro rata with their shareholding. I'm probably missing something obvious and even if I'm not it's far too bloody late.

Interesting to hear that, it was one of the things which struck me when I looked briefly at the deal. There is an inherent conflict around the board of the JV because the JV is like the joint property of a marriage which both parties know will have to end. One side gets jam today by paying less, jam tomorrow by paying more, and the other is the reverse - I'm not sure that would satisfy me as the collective interests of suppliers today are not automatically the same as the investment interests of the shareholder group of the future (i.e. those who will pay for, and in turn those others who will profit from, any acquisition of the remaining interest).

Quite apart from that it is a bit presumptuous on the co-op side to assume that an acquisition would necessarily be in the interest of or approved by future members when, in the view of many members (I suspect) they have yet to prove the worth of the initial transaction. If today's milk suppliers should suffer for the *potential* benefit of future suppliers then maybe they should be asked the question explicitly?

Those conflicts are the reason why I always felt there must or ought to have been a more formulaic inter-company agreement somewhere in there to resolve the issue before it occurs. If there isn't then that was a big shortfall on the part of those who advised the farmer side.

But the problem I think is not Glanbia's alone - in general the "we know best" attitude of the co ops and their willingness to make what are actually unprompted investment decisions on behalf of the members leaves a lot to be desired.

atlantic mist wrote: »

will future milk prices be dictated by gii ebit or world market prices?? (by world the 18 countries we export to)

gii paying us direct and capital injection from coop would help ebit but plc will not put forward further capital injections as margin to too low

they are hoping to spin down shares in plc so coop will be just left with gii, structure of board gives plc to much power for minority shareholders

coop could keep injecting money to dilute plc shareholding, would make sense but im sure small print will protect plc shareholding and only way out is to buy them out or be taken over

gii rep was with me last week and according to him farmers are looking for more processing facilities even though this must be paid out of our milk price, im alone in not agreeing for more processing facilities considering they cant sell the product from last expansion

The great promise of the massive infant formula market from belview when figures are public ally released its a shocking the amount of product that went into infant formula of total product produced.

The projected milk supply figures that were sent in in the census will be subject to milk price/weather etc. Also do not forget that some suppliers will leave -if they can- when the current msa is up. Will the milk lost from these just be covered by exsisting suppliers? Amazed that there was no question in the census on are farmers commited to staying after the msa is up

The max projection from their survey, your projections, will be used to justify more plant build.
The downside of people giving up or leaving will not be factored in, be assured.

kowtow wrote: »

Was there any undertaking given that the census information would not be shared with the jv or the plc? Either aggregated or individually?

The JV undertook the survey.
Only the individual's info is confidential.

Buford T. Justice V wrote: »

Fonterra announce milk price higher than Irish prices.

http://www.farmersjournal.ie/fonterra-jumps-ahead-of-irish-milk-price-241542

That's announcement couldn't of come at a better time, that likes of glanbia are running out of excuses fairly fast not to have a Base price of 30 cent plus come January 2017....

mahoney_j wrote: »

I wonder how many that signed up for reduction scheme actually reduced supply .....

And meanwhile I'm going to be about 25kl shy this Dec to Feb over last winter, but there's zero moneys left for me because everyone else was too busy throwing in their applications (my heart bleeds for ya I can hear everyone saying ha)

Applied, hoping to dry early December....still got 12000l to supply before we hit the reduction target...pity we didn't put in for more, but great to have it..

Keepgrowing wrote: »

I'm lost, milk is making c40c/litre at the moment. Why would someone want 14c?

Time of the year kg....cows on silage and 3kg meal...decision to use no further input as our feeling was the extra input would be just buying the extra milk....did that other years but last year was a cash neutral exercise at best...not gonna do that again. Cows tip away on minimum input,0.9kg ms, and as long as they hold body condition we will continue up to Christmas. The 14c is effectively a payment on last year's overproduction...

whelan2 wrote: »

See the letter in the journal about glanbia taking money off a trading account without consulting the farmer. I know there are 2 sides to every story but the reply looked like it was written by glanbia itself. No mention of bank of Ireland loans available to pay off trading accounts. Did it mention the gap loan scheme?

Supposedly the seasonal loans are gone now with the loan scheme Glanbia brought out

whelan2 wrote: »

I got it with bank of ireland a few months ago. I am not a customer of there's. There are options there other than swiping money unannounced.

There are options and no one could accuse me of being a glanbia cheerleader but I find once an agreement is made in advance about deductions or agreed payments are made money is not swiped unannounced. We've been dealing almost exclusively with them over the past year and have yet to be far wrong on price and usually doing better than what is available to us elsewhere. I'd agree that the letter reply looked like it had been written by glanbia trading though.

When price goes above 30c how much will be deducted due to schemes, think 1c in arrabawn for shares if not at adequate shares

whelan2 wrote: »

Any idea for November price?

30 base minimum ,at this stage it's well warranted

kevthegaff wrote: »

When price goes above 30c how much will be deducted due to schemes, think 1c in arrabawn for shares if not at adequate shares

0.5c for revolving fund and .5c for shares until you hit required amount. Revolving fund gets paid back.

kevthegaff wrote: »

What about the loan scheme?

In dairygold,? not sure I didn't opt for it. I think that was separate to milk price anyway