milk ireland processing decisions looming

centre 13

Not sure many dairy farmers realise that some of the biggest decisions in our lifetimes are being made or not over next couple of months.Glanbia is short capacity at the moment never mind post 2015..Dairygold too.Can they work together and process 70% of the country,s milk in 2020 or will they develope piecemeal.one right big drier ie 30t/hr will be way cheaper than a heap of small ones in the long run. Who will pay for this steel ?

PMU

we will .theres an old saying in the co-op movement; the cow always pays!
in other words the cost will come out of the milk price. one big dryer that will take product from all the co-ops is whats needed.

Timmaay

The whole processing capacity limit most certainly is a massive elephant in the corner, and will massively effect anyone on spring milk over the next few years. New Zealand took the step many years ago to only having one milk processing company, and for years have been able to produce milk much cheaper, than countries like Ireland who had the buffer of quotes to keep the milk price high!

Post quotes in 2015 Ireland will have no choice but to go down a similar road unless we want to get left behind!, the soon that this happens the better. What the timeframe for building a new processing plant is does anyone know? Short term, how badly the peak month fines by any of the processors effect spring milk producers will make a massive difference on how much they can expand by, I am involved in winter milk at the minute, which is not worth the hardship at all now, but in the future this could change big time, its a decision that I would like an answer soon rather then later!

nige2000

just a thought wouldn't only one processor in the country give us an even worse monopoly than what exists at the minute

i can understand that in theory it could lead to cheaper processor costs but do you really think that the management of such a company would care in the slightest of how hard the cowman works to keep him in his high paid cushy job

i think it would be naive to think otherwise

PMU

nige2000 wrote: »

just a thought wouldn't only one processor in the country give us an even worse monopoly than what exists at the minute

i can understand that in theory it could lead to cheaper processor costs but do you really think that the management of such a company would care in the slightest of how hard the cowman works to keep him in his high paid cushy job

i think it would be naive to think otherwise

if its done thru the co-op movement,we would be that management

nige2000

PMU wrote: »

if its done thru the co-op movement,we would be that management

unfortunately the co-op movement at this stage or scale is far removed from what they were first set up to stand for there is always an appointed management and staff which reports to a board. the board only sees the management of the co-op through the managements eyes and you will find that most board members will be yes men to management for an easy time and perks and the fact they only know what management tell them.

the fact remains although milk ireland is a great resource saving idea but in practice it will be up to management and staff to run it as a business mostly in the betterment of themselves

unfortunately this is a harsh reality

PMU

yes,and its a reality we are trying to change.post 2015 will see big changes as we expand

nige2000

PMU wrote: »

yes,and its a reality we are trying to change.post 2015 will see big changes as we expand

real crystal ball territory

JohnBoy

nige2000 wrote: »

unfortunately the co-op movement at this stage or scale is far removed from what they were first set up to stand for there is always an appointed management and staff which reports to a board. the board only sees the management of the co-op through the managements eyes and you will find that most board members will be yes men to management for an easy time and perks and the fact they only know what management tell them.

the fact remains although milk ireland is a great resource saving idea but in practice it will be up to management and staff to run it as a business mostly in the betterment of themselves

unfortunately this is a harsh reality

I work with a good few co-ops in my job, and to be honest any of the management/accountants I know live in fear of the committee, not the other way round.

Ultimately management are only employees, the board/comitee are the owners of the business.

nige2000

JohnBoy wrote: »

I work with a good few co-ops in my job, and to be honest any of the management/accountants I know live in fear of the committee, not the other way round.

Ultimately management are only employees, the board/comitee are the owners of the business.

an ifa man?

JohnBoy

ehhh, no, wouldnt be their biggest fan.

The company I work for supplies a couple of sectors, one of those is agri business.

Over the years I've gotten to know a few people working in the offices in co-ops. That's all.

nige2000

wild guesses not working for me this time

keep going

lets be more specific.where should it be built,what should it make,who should build it and where and what plants should be shut down