Milk Price III

Water John · 12-09-2019 11:18pm

That's a choice Glanbia and Dairygold made a long time ago. Once the quotas were going all their planning was simply dryers for SMP and WMP.
Their line to farmers was, you produce the milk and we'll process it.

Others have attempted diversity and simply using these commodities at peak production time.
At this stage, Talbot and her key supporters should be gone.

Morris Moss · 12-09-2019 11:30pm

cute geoge wrote: »

Last year was record year for milk production in this country and production is probably up 8% again from that this year .Glanbia and dairygold are flooded with milk all year ,all they can do is ship it out as powder as fast as possible to make room for more milk coming in!!!

I think it was down last year with the drought actually, anyway it's irrelevant Ireland is a drop in the ocean in terms of milk supply compared to the likes of France who are paying 36cpl, as others have said it's easy cut the price of milk and save money for the fcuk ups they've made, ya can be sure they won't take a pay cut or somebody be held accountable for knocking 900 million of the value of the company, it'll be another pay rise next year for them.

Mortelaro · 12-09-2019 11:45pm

https://twitter.com/j0hn_k/status/1172189348814630913?s=19

Gawddawggonnit · 13-09-2019 7:24am

Injuryprone wrote: »

What does your processor do with its milk?
What % goes into premium products sold locally and what % is traded on the global commodity markets?
How much has it expanded since the end of the quota?
I fear we may be comparing apples with oranges here. Imo the chickens are beginning to come home to roost with the Irish processors' tactic of expansion to infinity by throwing up dryer after dryer to churn out endless amounts of milk powder as opposed to premium products. The only country that's comparible to us is NZ, whose price isn't great either at the moment I think.

My Coop is small with only 1200 producers. They also have a good few goats milk producers, coupled with both cow and goat organic producers.
Ordinary cows milk production amounts to only 750mln litres.
The Coop only use a fraction of supply to make a few niche market cheeses and butters. The vast majority of supply is sold on to other processors like Savencia and Lactalis etc.
The Coop is basically a producers marketing group and works very well. The business is simple and transparent.

There’s a very strong market for milk since production eased. My Coop have, for the third year running, over sold their milk and face penalties for not fulfilling contracts...it’s been hinted that if I produce more milk that they’d waive the production cost.

The only powder that’s being produced is for infant formula in a joint venture with a Chinese company.

There’s only about 600miles between Glanbia and Terra Lacta, but it amounts to nearly 10cpl.
That’s a mahoosive price differential and it’s largely incredible that such a differential could possibly exist.

Injuryprone · 13-09-2019 9:43am

Gawddawggonnit wrote: »

My Coop is small with only 1200 producers. They also have a good few goats milk producers, coupled with both cow and goat organic producers.
Ordinary cows milk production amounts to only 750mln litres.
The Coop only use a fraction of supply to make a few niche market cheeses and butters. The vast majority of supply is sold on to other processors like Savencia and Lactalis etc.
The Coop is basically a producers marketing group and works very well. The business is simple and transparent.

There’s a very strong market for milk since production eased. My Coop have, for the third year running, over sold their milk and face penalties for not fulfilling contracts...it’s been hinted that if I produce more milk that they’d waive the production cost.

The only powder that’s being produced is for infant formula in a joint venture with a Chinese company.

There’s only about 600miles between Glanbia and Terra Lacta, but it amounts to nearly 10cpl.
That’s a mahoosive price differential and it’s largely incredible that such a differential could possibly exist.

So none of your milk is ending up in WMP, SMP? At what price differential will it become economic for Irish coops to start supplying french processors, I wonder😀

alps · 13-09-2019 10:26am

Injuryprone wrote: »

So none of your milk is ending up in WMP, SMP? At what price differential will it become economic for Irish coops to start supplying french processors, I wonder😀

The 10c would get your milk to Dawgs Coop

moneyheer · 13-09-2019 11:25am

Just heard that the cut yesterday was the first of five. The idea is to discourage new entrants. Came from a rep that has close contacts in Glanbia. Hope 2 feck he wrong.

Mortelaro · 13-09-2019 11:32am

moneyheer wrote: »

Just heard that the cut yesterday was the first of five. The idea is to discourage new entrants. Came from a rep that has close contacts in Glanbia. Hope 2 feck he wrong.

I think an actual policy deciding in advance to cut it to 24c in a message they give of deciding prices monthly would be an outrage deserving of pitch forks and burning lamps

GrasstoMilk · 13-09-2019 12:43pm

Mortelaro wrote: »

I think an actual policy deciding in advance to cut it to 24c in a message they give of deciding prices monthly would be an outrage deserving of pitch forks and burning lamps

the board that sets milk price have gone on a trip to south Africa I heard this morning, all expenses covered by glanbia (us)

Mortelaro · 13-09-2019 1:12pm

GrasstoMilk wrote: »

the board that sets milk price have gone on a trip to south Africa I heard this morning, all expenses covered by glanbia (us)

They won't be at the back of the plane either, they'll need their fully flat bed seats so as to be nice and fresh on arrival to learn how to turn rural Ireland into shanty towns with low milk prices

Gawddawggonnit · 13-09-2019 1:26pm

alps wrote: »

The 10c would get your milk to Dawgs Coop

Irish milk is worthless here.
It’s the provenance & terroir that’s important.

In fairness it must cost feck all per ton of milk processed to dry into a powder, bag and paletize, and fire onto a boat...in comparison to producing a boutique cheese etc.

Gawddawggonnit · 13-09-2019 1:29pm

moneyheer wrote: »

Just heard that the cut yesterday was the first of five. The idea is to discourage new entrants. Came from a rep that has close contacts in Glanbia. Hope 2 feck he wrong.

Make all suppliers suffer to discourage a few new entrants? Hardly.

whelan2 · 13-09-2019 1:32pm

GrasstoMilk wrote: »

the board that sets milk price have gone on a trip to south Africa I heard this morning, all expenses covered by glanbia (us)

I'm sure our tickets to south Africa will arrive with our milk cheques next week. So will they be missing the ploughing?

Castlekeeper · 13-09-2019 1:39pm

GrasstoMilk wrote: »

Mortelaro wrote: »

I think an actual policy deciding in advance to cut it to 24c in a message they give of deciding prices monthly would be an outrage deserving of pitch forks and burning lamps

the board that sets milk price have gone on a trip to south Africa I heard this morning, all expenses covered by glanbia (us)

Contact our man in Jo'burg, Van will sort them out.

alps · 13-09-2019 1:53pm

How does 4c/l for 5 years for new milk sound?

davidk1394 · 13-09-2019 2:12pm

alps wrote: »

How does 4c/l for 5 years for new milk sound?

Is that a definite ? I was talking to different people and their not sure what’s going to happen. When are the board due to vote ? Everyone in for 2020 is fine but it’s the year after I’m worried about which is when I’m due to start.

jaymla627 · 13-09-2019 2:34pm

Driving on here the new ‘150’ cow cubicle shed is going together nicely haha

GrasstoMilk · 13-09-2019 3:41pm

jaymla627 wrote: »

Driving on here the new ‘150’ cow cubicle shed is going together nicely haha

36 more going in here.

whelan2 · 13-09-2019 3:47pm

GrasstoMilk wrote: »

36 more going in here.

210 going in here. We are mad....

Mooooo · 13-09-2019 3:52pm

whelan2 wrote: »

210 going in here. We are mad....

Are you replacing a shed or adding on?

jaymla627 · 13-09-2019 3:53pm

GrasstoMilk wrote: »

36 more going in here.

Won’t be a cubicle in that shed, alternative enterprise bit of diversification is no harm

RightTurnClyde · 13-09-2019 3:55pm

jaymla627 wrote: »

Driving on here the new ‘150’ cow cubicle shed is going together nicely haha

Jay, you seem to have a thing for mobile homes.... just saying..:)")

whelan2 · 13-09-2019 3:57pm

Mooooo wrote: »

Are you replacing a shed or adding on?

Both. Whole new build. 10 bay cubicle shed.

wrangler · 13-09-2019 4:14pm

A neighbour bought a parlour and tank this time last year for €5000 and converted a shed to try milking.
I haven't seen the settup but he's milking 50, he has another business and he doesn't do much of the milking .
Another neighbour looking for a second hand parlour, he's reseeding the whole farm this week and starting in february.
One of our sheep group sold his ewes on Wednesday and had 170 incalf heifers delivered this week,
My hedgecutting contractor is building as well
I'm waiting for the big bang

GrasstoMilk · 13-09-2019 4:18pm

whelan2 wrote: »

210 going in here. We are mad....

We'll have 152 with these in. All our Incalf animals will be in the one shed/yard. Will make life alot easier, just scrap down and lime cubicles and feed up. Will be able to look after cows alot better with it.
We had poor enough facilities for long enough here.

Timmaay · 13-09-2019 4:28pm

Some serious capital investment going on here also, badly needed upgrade on a 50 Yr cubicle shed. I'm putting in a 25cm strip of extra concrete to make the bed longer to accommodate drycows instead of just heifers ha. Will prob still take me 2wks using the electric concrete mixer doing an hr or 2 a day lol.

Buford T. Justice XIX · 13-09-2019 4:29pm

I'm putting in 6:D

Well, replacing 6 that are broken:pac:

Panch18 · 13-09-2019 4:37pm

Put in our last cubicles in 2017 and can't see us spending another penny on the yard, bar repairs in a good year

Milking 140 and if that won't do us then it's time to give up altogether

Morris Moss · 13-09-2019 4:40pm

wrangler wrote: »

A neighbour bought a parlour and tank this time last year for €5000 and converted a shed to try milking.
I haven't seen the settup but he's milking 50, he has another business and he doesn't do much of the milking .
Another neighbour looking for a second hand parlour, he's reseeding the whole farm this week and starting in february.
One of our sheep group sold his ewes on Wednesday and had 170 incalf heifers delivered this week,
My hedgecutting contractor is building as well
I'm waiting for the big bang

The lad with the 170 heifers is in for some fun, he's either very naive or very brave, I've a feeling it's the latter.

Morris Moss · 13-09-2019 4:50pm

Panch18 wrote: »

Put in our last cubicles in 2017 and can't see us spending another penny on the yard, bar repairs in a good year

Milking 140 and if that won't do us then it's time to give up altogether

I find it mad the way lads are increasing numbers, have 110 here this year and if it's stays at that or drops a bit I don't care, a good few of the "top operaters" around here are tied to the farm, no life whatsoever, not even a pint at the weekend, maybe they love it and if they do fair play but I don't see the point in working like a slave milking 250 - 300 cows and then having no time to enjoy doing anything after.

mahoney_j · 13-09-2019 4:59pm

My building is done ,stocked over 4 on milk block feed space and bed for every cow/heifer and 10% spare capacity dropped a fortune expanding cows and facilities since 2010 but don’t regret a penny of it consolidate and improve efficiency now ,glad I’m notvstarting now or in last year or 2 .lads in some rush to expand and some serious twine been dropped by new entrants etc

whelan2 · 13-09-2019 5:03pm

GrasstoMilk wrote: »

the board that sets milk price have gone on a trip to south Africa I heard this morning, all expenses covered by glanbia (us)

Said this to my dad. He replied I hope they are one way tickets

Mortelaro · 13-09-2019 5:25pm

Morris Moss wrote: »

I find it mad the way lads are increasing numbers, have 110 here this year and if it's stays at that or drops a bit I don't care, a good few of the "top operaters" around here are tied to the farm, no life whatsoever, not even a pint at the weekend, maybe they love it and if they do fair play but I don't see the point in working like a slave milking 250 - 300 cows and then having no time to enjoy doing anything after.

If you've a plan and the land,(not rented land!)theres nothing wrong with serious number increases in my view
If you've an enthusiastic son or daughter then effectively well maintained its a 40 yr investment not a 20yr one
I remember my Dad bringing me with him more than 40 yrs ago to borrow to improve
His words were,this lads taking over when I retire and he'll take on any remaining debt
That's exactly what happened
I'm actually looking forward to my retirement now though and I accept none of mine want to be dairy farmers, I don't blame them but have the height of respect for the passion of the expanders
I used have that passion
I just hate to see it being pissed on from a height by the processors
Its immoral

alps · 13-09-2019 9:49pm

davidk1394 wrote: »

Is that a definite ? I was talking to different people and their not sure what’s going to happen. When are the board due to vote ? Everyone in for 2020 is fine but it’s the year after I’m worried about which is when I’m due to start.

Just one of the proposals. This discussion happening in most board rooms but really in a quandary as to what to do. Make no mistake about it, the current expansion is weighing heavily on milk price and the flood of new applications is causing grave concern..

Again I'll harp beck to it...the alignment of shares to production was a monumental mistake by the industry in 2015...coops licensed the production of enormous volumes of milk..

I know in 1 coop, there are enough shares in circulation to deliver 4 times the capacity of the coop..

kevthegaff · 13-09-2019 10:31pm

alps wrote: »

Just one of the proposals. This discussion happening in most board rooms but really in a quandary as to what to do. Make no mistake about it, the current expansion is weighing heavily on milk price and the flood of new applications is causing grave concern..

Again I'll harp beck to it...the alignment of shares to production was a monumental mistake by the industry in 2015...coops licensed the production of enormous volumes of milk..

I know in 1 coop, there are enough shares in circulation to deliver 4 times the capacity of the coop..

when i started 12 hrs ago I had to share up and adhere to quota, maybe something onto this

GrasstoMilk · 14-09-2019 7:53pm

https://www.farmersjournal.ie/flexitarianism-is-an-opportunity-for-irish-dairy-ornua-494457

K.G. · 14-09-2019 10:16pm

Gas thing is the coops that pay.the.most are.getting the.least new supplier s and the crowd that.pay.the least are getting the most.:p

Buford T. Justice XIX · 14-09-2019 10:28pm

K.G. wrote: »

Gas thing is the coops that pay.the.most are.getting the.least new supplier s and the crowd that.pay.the least are getting the most.:p

There's not a lot of scope for conversion anywhere else except the East coast. Most around here are milking already and farms in a lot of the Kerry catchment would be too small to convert profitably and probably too small to stay going unless there's a significant premium over current prices available.

The average age of dairy farmers is around 59 so a big proportion will be looking at winding down rather than working harder for more risk and less reward.

alps · 15-09-2019 9:29pm

Anyone take a punt on the Grennans fixed milk price offering in 2107?

The scheme is scheduled to run from November 1, 2017, to October 31, 2022. If the base price offered by Glanbia falls below 31.5c/L including VAT – for milk manufactured at 3.3% milk protein and 3.6% butterfat – Grennans will pay the farmer the price difference.

jaymla627 · 15-09-2019 9:35pm

alps wrote: »

Anyone take a punt on the Grennans fixed milk price offering in 2107?

The scheme is scheduled to run from November 1, 2017, to October 31, 2022. If the base price offered by Glanbia falls below 31.5c/L including VAT – for milk manufactured at 3.3% milk protein and 3.6% butterfat – Grennans will pay the farmer the price difference.

Yeah got a nice chunk of milk in it, will be getting a nice Cheque in November of them, was down slightly up till this year but will be well ahead by years end

farmertipp · 16-09-2019 10:37am

Morris Moss wrote: »

Panch18 wrote: »

Put in our last cubicles in 2017 and can't see us spending another penny on the yard, bar repairs in a good year

Milking 140 and if that won't do us then it's time to give up altogether

I find it mad the way lads are increasing numbers, have 110 here this year and if it's stays at that or drops a bit I don't care, a good few of the "top operaters" around here are tied to the farm, no life whatsoever, not even a pint at the weekend, maybe they love it and if they do fair play but I don't see the point in working like a slave milking 250 - 300 cows and then having no time to enjoy doing anything after.

you only need to ask your feed and fert rep how collecting money is going. 50 to 120 cow guy is easier to collect from

yewtree · 16-09-2019 10:44am

farmertipp wrote: »

you only need to ask your feed and fert rep how collecting money is going. 50 to 120 cow guy is easier to collect from

I had a chat with our rep about this last week. His take was its the expanding farms that are hardest get money from weather its going from 40 to 80 or 100 to 200. Once farms get a few years to consolidate they are grand.

farmertipp · 16-09-2019 10:56am

yewtree wrote: »

farmertipp wrote: »

you only need to ask your feed and fert rep how collecting money is going. 50 to 120 cow guy is easier to collect from

I had a chat with our rep about this last week. His take was its the expanding farms that are hardest get money from weather its going from 40 to 80 or 100 to 200. Once farms get a few years to consolidate they are grand.

I would say that is the case. double whammy of expansion and huge cost last year is still weighing a lot of guys. I think this year was great help even though milk price was not where we would like it. weather saved a huge amount and allowed guys to pay down merchant debt

mahoney_j · 16-09-2019 10:58am

farmertipp wrote: »

you only need to ask your feed and fert rep how collecting money is going. 50 to 120 cow guy is easier to collect from

Fully agree but unless u fight like a dog with them the better deals are still givien to the bigger boys wether they’ve good payment history or not

Say my name · 16-09-2019 11:10am

farmertipp wrote: »

you only need to ask your feed and fert rep how collecting money is going. 50 to 120 cow guy is easier to collect from

I reckon that's just a plamas to give the smaller guy a bit of pride and to keep them paying up on time.
There could be truth in it but I reckon you're either made that way or if you're let get away without payment you'll continue to do so.

There's a model farmer in every parish (could be expanding maybe not) that has a squeaky clean image on social media but gets trades people in to do jobs and never pays them or buys straw or silage or whatever and never pays them.
In the eyes of teagasc who wouldn't know the full story they're the role farmer that others should follow.

awaywithyou · 16-09-2019 11:14am

Kerry hold price at 29.5c/l inc vat... surprised tbh... thought theyd throw the toys out of the pram over the arbitration.....

Buford T. Justice XIX · 16-09-2019 2:06pm

awaywithyou wrote: »

Kerry hold price at 29.5c/l inc vat... surprised tbh... thought theyd throw the toys out of the pram over the arbitration.....

It's easy to hold this months milk price when you still haven't paid fully for the Jan 2015 milk.

Just saying, like:P

jaymla627 · 16-09-2019 2:12pm

Buford T. Justice VI wrote: »

It's easy to hold this months milk price when you still haven't paid fully for the Jan 2015 milk.

Just saying, like:P

I’d say Jim Bergin has the letter drafted already to see if soup and sandwiches given out at the ploughing to Glanbia milk suppliers will be taken into account for the 2019 kpmg report haha....

Say my name · 16-09-2019 2:21pm

jaymla627 wrote: »

I’d say Jim Bergin has the letter drafted already to see if soup and sandwiches given out at the ploughing to Glanbia milk suppliers will be taken into account for the 2019 kpmg report haha....

I think you'll find the soup and sandwiches will be only for employees and cell check winners.. (and free tickets).
Wait and see!
Now pat tell us your daily milking routine and how you've managed to get here two years in a row.

jaymla627 · 16-09-2019 2:30pm

mahoney_j wrote: »

Fully agree but unless u fight like a dog with them the better deals are still givien to the bigger boys wether they’ve good payment history or not

You need to be dealing with a few mills and play them of against each other, have often went away from one mill for 2/3 months till they call back with the tail between the legs with a cheaper price, also put in a 32 ton bin this year and getting a nice discount when talking a full artic load, their is a 15 euro a ton plus saving when buying this way alone

Milk Price III

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