Milk Price- Please read Mod note in post #1

mahoney_j

jaymla627 wrote: »

Was bemused this morning when I asked milk tanker driver whats the deal was with all the lakeland lorries around the place, never seen one in all my time driving through our area but could meet 2-3 everyday now....
They're ferrying milk into ballyragget that's going into smp/wmp so obviously glanbia are buying this stuff at a hefty discount and lakeland are subbing the difference of 7 plus cent, they won't be long eating into their cash reserves at that racket

A couple of tanks a day comming to north tipp as well from said coop

Milked out

Timmaay wrote: »

Bass Reeves wrote: »

If grain prices remain as is fellas will start to leave land fallow. I saw posted on another thread that loads of maize set on tillage land because of late spring. Talk about being stupid plenty of cheap forage at the end of the year for Larry to fill the sheds with all those 2015 born cattle.

As well look at DD at the moment loads of adds for HE and AA suck calves. It a case of suck em and see for next 6-8 months.

I was talking to the chap who grows maize for me last week, his orders from dairyfarmers this year are well down, ordinarily that wouldnt bother him he'd just plant another crop, however very few crops make any economic sense this year! We were talking about the poor spring, late silage etc, and he wanted to know should he take a punt on more maize incase farmers were short next winter, I told him that was very risky, we simply won't have the money to pay for it and would rather cull instead which he accepted, however he's that much between a rock and a hard place that he was willing to take a punt on the extra based on our conversation about the late spring!!

Add your reply here.
That's gas down here the lad that grows it for me has said demand is up with him as lads that would be usually taking early first cuts are grazing it instead and buying in winter feed

Milked out

Timmaay wrote: »

Bass Reeves wrote: »

If grain prices remain as is fellas will start to leave land fallow. I saw posted on another thread that loads of maize set on tillage land because of late spring. Talk about being stupid plenty of cheap forage at the end of the year for Larry to fill the sheds with all those 2015 born cattle.

As well look at DD at the moment loads of adds for HE and AA suck calves. It a case of suck em and see for next 6-8 months.

I was talking to the chap who grows maize for me last week, his orders from dairyfarmers this year are well down, ordinarily that wouldnt bother him he'd just plant another crop, however very few crops make any economic sense this year! We were talking about the poor spring, late silage etc, and he wanted to know should he take a punt on more maize incase farmers were short next winter, I told him that was very risky, we simply won't have the money to pay for it and would rather cull instead which he accepted, however he's that much between a rock and a hard place that he was willing to take a punt on the extra based on our conversation about the late spring!!

Add your reply here.
That's gas down here the lad that grows it for me has said demand is up with him as lads that would be usually taking early first cuts are grazing it instead and buying in winter feed

RightTurnClyde

jaymla627 wrote: »

Was bemused this morning when I asked milk tanker driver whats the deal was with all the lakeland lorries around the place, never seen one in all my time driving through our area but could meet 2-3 everyday now....
They're ferrying milk into ballyragget that's going into smp/wmp so obviously glanbia are buying this stuff at a hefty discount and lakeland are subbing the difference of 7 plus cent, they won't be long eating into their cash reserves at that racket

Where does the big percentage of their product go? High value product?
If they have a high enough percentage during the peak months going into high value products, it would pay them to effectively dump this excess milk, rather than having to buy milk in the shoulders to meet their needs

Bass Reeves

rangler1 wrote: »

That faint pulse will be under pressure if euro comes up more against sterling..... English were selling their lambs for £65 midseason i think last year.£65 a lamb is only about €80 if euro is 80p

I think the UK is a net exporter of lamb so because sterling is strong there would be downward pressure on product.

Milked out wrote: »

Add your reply here.
That's gas down here the lad that grows it for me has said demand is up with him as lads that would be usually taking early first cuts are grazing it instead and buying in winter feed

Growing it and getting paid are two different things. Demand might be strong but as most contracts are verbal and maybe just inquiry as to cost of product this demand might not follow through. As Timmay said choice may be to cull sightly harder in the autumn rather than over winter old cows or cows with issue's. A lot will depend on perception coming into winter flat or falling price at year end will see farmers cull a rising price may see them hold, perception is everything.

Tillage farmers are a strange species they have a mortal fear of leaving land fallow. Maize is a gamble at the best of times. Dairy and beef farmers have been slipping away from growing it due to cost and risk of crop quality. Here now are tillage farmer's half advised by the FJ considering growing a crop that is risky at the best of times growing it for farmers that will more than likely be cash strapped in the autumn.

whelan2

jaymla627 wrote: »

Was bemused this morning when I asked milk tanker driver whats the deal was with all the lakeland lorries around the place, never seen one in all my time driving through our area but could meet 2-3 everyday now....
They're ferrying milk into ballyragget that's going into smp/wmp so obviously glanbia are buying this stuff at a hefty discount and lakeland are subbing the difference of 7 plus cent, they won't be long eating into their cash reserves at that racket

Was Ballyragget not to close when Bellview got up and running? Doesnt bother me where milk is going as long as we get a proper price for it

Buford T. Justice XIX

RightTurnClyde wrote: »

Where does the big percentage of their product go? High value product?
If they have a high enough percentage during the peak months going into high value products, it would pay them to effectively dump this excess milk, rather than having to buy milk in the shoulders to meet their needs

I was told Lee Strand co-op sell 2.5 liter cartons of milk rather than 2 liter as it would be more economical to give away the half liter than to dry the excess liquid milk.

freedominacup

whelan2 wrote: »

Was Ballyragget not to close when Bellview got up and running? Doesnt bother me where milk is going as long as we get a proper price for it

No, never part of the plan. Belview a one trick pony only. Balkyraggett has several strings to it's bow.

If we were to cash out of the plc would people have the stomach for buying out the agrbusiness, dairy Ireland and remainder of GII?

On 5 - 5.5 times ebiata (earnings) this would have a price tag of €250million approx. Cashing out should raise around €2billion.

Hard push on for another cent drop. All board and council members should be finding it hard to get anything done atm with all the calls. We are entitled to know exactly how bad it's going to be for the next three months and plan our inputs accordingly.

keep going

freedominacup wrote: »

No, never part of the plan. Belview a one trick pony only. Balkyraggett has several strings to it's bow.

If we were to cash out of the plc would people have the stomach for buying out the agrbusiness, dairy Ireland and remainder of GII?

On 5 - 5.5 times ebiata (earnings) this would have a price tag of €250million approx. Cashing out should raise around €2billion.

Hard push on for another cent drop. All board and council members should be finding it hard to get anything done atm with all the calls. We are entitled to know exactly how bad it's going to be for the next three months and plan our inputs accordingly.

based on info supplied to me a drop of 2 cent on its way for april and should be another 1.5 to 2 cent but carbery hope to support it for most of the peak season.this wipe is catching all products

Farmer Ed

keep going wrote: »

based on info supplied to me a drop of 2 cent on its way for april and should be another 1.5 to 2 cent but carbery hope to support it for most of the peak season.this wipe is catching all products

Is that 2 c in total of is it another 1.5 to 2 for may on top of the April cut ? If carberry don't drop your looking at a huge gap opening up

jaymla627

Farmer Ed wrote: »

Is that 2 c in total of is it another 1.5 to 2 for may on top of the April cut ? If carberry don't drop your looking at a huge gap opening up

Factor in that alot of glanbia supplier will be paying back superlevy fines aswell which could account for 1-2 cent of their base price it's looking pretty hairy if these cuts do take place

Water John

Ed, you brought up this morning about product mix and its reflection in the price paid to the farmer. This has been a huge issue with a long time.
IFA seem to never have done their research on this.
Making WMP is simply dumping excess milk. The value return on other products has been kept 'for commercial reasons' like the third secret of Fatima.

A simple example is that DG had a €20M bonus each year for the product they produced for Danone. DG did not tell us, you can be sure.
They banked on it continuing but the premium is no longer there.
Yet, Danone sell a premium grass based Infant Formula but the farmer gets none of that benefit.
Hence Danone profits going up, farmer margin going down. DG going nowhere but the managers are still drawing the salaries.

The mix of each processor should be analysed and its likely return, based on the info available. Only be each processor being put individually under the microscope can transparency on price to the farmer be assured.

kowtow

Exactly.

The problem is that processors will always cite commercial confidentiality because of the proprietary nature of the contracts..... and that's when they stop looking like farmers coops and become a big bad buyer on the other side of the fence.

I actually have some sympathy for the confidentially argument, but I wonder if things couldn't be turned on their head a little by farmers forcing their coops to publish the amount of wmp, smp etc. Sold by them at commodity prices. If we had the figures on a monthly or quarterly basis for what was going out as surplus we'd have more chance of judging what value was really being added to our milk and whether each of our processors were partners or vultures.

Transparency of this sort is really the minimum that must be offered if we are expected to adhere to MSA'S of the type that have been demanded.

It wouldn't be impossible to demand retrospective change, if everyone was of a like mind.

Farmer Ed

kowtow wrote: »

Exactly.

The problem is that processors will always cite commercial confidentiality because of the proprietary nature of the contracts..... and that's when they stop looking like farmers coops and become a big bad buyer on the other side of the fence.

I actually have some sympathy for the confidentially argument, but I wonder if things couldn't be turned on their head a little by farmers forcing their coops to publish the amount of wmp, smp etc. Sold by them at commodity prices. If we had the figures on a monthly or quarterly basis for what was going out as surplus we'd have more chance of judging what value was really being added to our milk and whether each of our processors were partners or vultures.

Absolutely. At the moment we are just constantly reminded of world prices when they want to drop the price and then we are all told about the high value added space age products they are producing when management want to go on a spending spree or make themselves look good.
They can't have it both ways surely?

keep going

Farmer Ed wrote: »

Is that 2 c in total of is it another 1.5 to 2 for may on top of the April cut ? If carberry don't drop your looking at a huge gap opening up

carbery should drop 4 cent according to dairy product returns but they hope to subsidise by 1.5 to 2 cent

Water John

I can't get my head around the notion of a coop, saying it's subsidising milk price. Is this saying they are returning more than its making. In my simple language that is called a loss.
Do I not get accounting?

BTW I don't want any processor to operate at a loss. That would be very short termism and detremental to its interests.

mf240

It's making a compliment of paying a poor price. That's all really .

kowtow

There's an article by pat o toole in the journal under the headline "coop bosses cost €25 per cow per year"...

A figure which is allegedly 10x that of New Zealand and 5x that of the Netherlands.

A timely article, although I am not convinced by the implication that consolidating the coops is the solution for Ireland. Those kind of corporate actions tend to be an excuse for more executive pay not less.

The great and the good are always telling us that we must be hyper efficient before we dream of expansion. The coops would do well to follow the same rule.

Farmer Ed

kowtow wrote: »

There's an article by pat o toole in the journal under the headline "coop bosses cost €25 per cow per year"...

A figure which is allegedly 10x that of New Zealand and 5x that of the Netherlands.

A timely article, although I am not convinced by the implication that consolidating the coops is the solution for Ireland. Those kind of corporate actions tend to be an excuse for more executive pay not less.

The great and the good are always telling us that we must be hyper efficient before we dream of expansion. The coops would do well to follow the same rule.

Amen

We thought the old health boards were bad until we got the Hse. We should be careful what we wish for

Water John

There just might be a clue in the journalist's name.
IFJ have been angling on this for a while. That is why they are publishing renumeration figures.
Not to seek reasonable salaries and board member payment. Its to condition farmers to seek amalgamations and mergers. The ICOS solution again.

WheatenBriar

Water John wrote: »

I can't get my head around the notion of a coop, saying it's subsidising milk price. Is this saying they are returning more than its making. In my simple language that is called a loss.
Do I not get accounting?

BTW I don't want any processor to operate at a loss. That would be very short termism and detremental to its interests.

Aye it's total board room bubble arrogance to suggest a co op's respectable profits are 'subsidising' milk price ie that they'd make higher profits if only they could get away with making farmers losses bigger

Dairy Co op's & plc's always the fcucker's making the farmer the fcukee

keep going

If carbery milk price was based solely on the returns from manufacturing dairy products it would be in the region of 21 cent.in fact in my opinion many of the coops are doing a super job in the current climate

Water John

Well. the next time a CEO or rep of a processor spouts that sh**e, the journalist should ask for a detailed explanation to the scutter they have just spouted.

Water John

What else are Carbery making?
Are they making products for which milk isn't the base?

Unless a processor has some thing else going and the profits are being clearly used to prop up the dairy function, i don't buy it.

keep going

Water John wrote: »

What else are Carbery making?
Are they making products for which milk isn't the base?

They are involved in business that have nothing to do with milk and are involved in secondry processing of dairy products from milk that dosent come from west cork but I will say that management have a way of segregating the business which hides some the return frommilk but dont worry we tell them that we are aware of it.but if you take cheese, whey powder, cream, milk powder , alcohol, or what ever, the market is currently paying 21 to 22 cent

Water John

So they play little games with the info to board members and Carbery is the best in the country. What are the rest up to?

I know the 4 coops have each their own businesses. I accept in these tight times they may be using some of this to prop up milk price.

You are saying the mix of products is returning 20/21 cent.
So what is WMP retuning ATM, any one?

Thanks Keep Going.

atlantic mist

i do think our situation is different to the mainstream coops left in country, as now supplying a limited company, so they can be the big bad buyer, thats what they need to do to achieve the business goal, our coop top up are because they know we have a bit of a raw deal and they are trying to keep suppliers content while maximising share value as they see this as the main objective of our coop now and this in turn will put more money in suppliers pockets, drip fed, admin costs for coop eat up a tidy number every year, dont think it will in long run

from a volatility point of view suppliers and processors should be in partnership like a good supply chain, where by we as suppliers can react to changes in our processors sales portfolio and visa versa, we have the processing facilities to be able to move with or reduce supplies when and where market opportunities exist, maximising opportunities and reducing risk, waiting for a monthly meeting, we dont know what gets sold, for what prices and what regions, whats still sitting in stock, whats the production cost of each product, the weakening of euro is helping us some bit id be worried if it strengthens, gii did not expect this low a milk price but they were pushing sales so they havent helped us too much either prepared to drop quick for sales, all fixed price schemes with us were contracts and while im sure confidential we were told about the buyer and price, dont know if they have other contracts could be just the few by looks of it

were producing product every day not knowing the price were going to get paid (ok fixed price and liquid lads know a bit better) and processors are processing it not knowing what price they will be paid, tis a crazy world we do be livin in, at least we know what it retails for all round the world

farmers getting subsidised milk prices and in return subsidising the limited company/coop to ensure they meet their margin, these subsidies are great

keep going

atlantic misis wrote: »

i do think our situation is different to the mainstream coops left in country, as now supplying a limited company, so they can be the big bad buyer, thats what they need to do to achieve the business goal, our coop top up are because they know we have a bit of a raw deal and they are trying to keep suppliers content while maximising share value as they see this as the main objective of our coop now and this in turn will put more money in suppliers pockets, drip fed, admin costs for coop eat up a tidy number every year, dont think it will in long run

from a volatility point of view suppliers and processors should be in partnership like a good supply chain, where by we as suppliers can react to changes in our processors sales portfolio and visa versa, we have the processing facilities to be able to move with or reduce supplies when and where market opportunities exist, maximising opportunities and reducing risk, waiting for a monthly meeting, we dont know what gets sold, for what prices and what regions, whats still sitting in stock, whats the production cost of each product, the weakening of euro is helping us some bit id be worried if it strengthens, gii did not expect this low a milk price but they were pushing sales so they havent helped us too much either prepared to drop quick for sales, all fixed price schemes with us were contracts and while im sure confidential we were told about the buyer and price, dont know if they have other contracts could be just the few by looks of it

were producing product every day not knowing the price were going to get paid (ok fixed price and liquid lads know a bit better) and processors are processing it not knowing what price they will be paid, tis a crazy world we do be livin in, at least we know what it retails for all round the world


farmers getting subsidised milk prices and in return subsidising the limited company/coop to ensure they meet their margin, these subsidies are great

Have no doubt there is s##t loads of dairy products in storage in ireland.someone here mentioned that a ceo wants to bring milk to 17 cent but id say if you told most ceos that we are all drying off the cows no more milk for the rest of the year, they d all breath a huge sigh of relief

Bass Reeves

keep going wrote: »

Have no doubt there is s##t loads of dairy products in storage in ireland.someone here mentioned that a ceo wants to bring milk to 17 cent but id say if you told most ceos that we are all drying off the cows no more milk for the rest of the year, they d all breath a huge sigh of relief

I do not think they would. Truth is they make they cover costs and make a margin no matter how much dairy farmers lose. This is the big lie, it is the same right across agriculture. If a farmer produces grain it is immaterial to the miller whether it is profitable to the farmer or not, the miller adds his processing costs and his margin and extracts that from the market.

Milk is no different except it is a more perishable product. If every farmer dryed off the cows in the morning the dairy processors would still have operating costs they would be way lower but he would be unable to extract these costs from a product.

It is a bit like the farmer if he dry's off the cows he still has operating costs. They want that milk at the lowest price they can get away with paying so as to add there operating costs to the salable product

keep going

Bass Reeves wrote: »

I do not think they would. Truth is they make they cover costs and make a margin no matter how much dairy farmers lose. This is the big lie, it is the same right across agriculture. If a farmer produces grain it is immaterial to the miller whether it is profitable to the farmer or not, the miller adds his processing costs and his margin and extracts that from the market.

Milk is no different except it is a more perishable product. If every farmer dryed off the cows in the morning the dairy processors would still have operating costs they would be way lower but he would be unable to extract these costs from a product.

It is a bit like the farmer if he dry's off the cows he still has operating costs. They want that milk at the lowest price they can get away with paying so as to add there operating costs to the salable product

Fair enough if that is what you think, just try getting some cold storage or any kind of warehouse at the moment and come back to me then

alps

keep going wrote: »

Fair enough if that is what you think, just try getting some cold storage or any kind of warehouse at the moment and come back to me then

What balance sheet is this product showing up on? Is it showing in the accounts of the coops?

Has this product gone through to some holding company as a sale?

Can co ops set up such holding companies without the showing up on the parent company's books?

I'm very suspicious...

kowtow

keep going wrote:

They are involved in business that have nothing to do with milk and are involved in secondry processing of dairy products from milk that dosent come from west cork but I will say that management have a way of segregating the business which hides some the return frommilk but dont worry we tell them that we are aware of it.but if you take cheese, whey powder, cream, milk powder , alcohol, or what ever, the market is currently paying 21 to 22 cent

If that is the case aren't you actually thanking carbery for being...

1. Your milk processor and
2. Your combined investment adviser + fund manager?

Is that an appropriate role for a coop in these professional times?

Why not get Carbery to sell the non core assets and return the funds so you can stick them in a hedge fund?

I'm a bit surprised because until now I thought Carbery returns were from the various premium brands including cheese which they are able to turn a margin on?

Bass Reeves

keep going wrote: »

Fair enough if that is what you think, just try getting some cold storage or any kind of warehouse at the moment and come back to me then

Most Co-op, Milk processors etc would store processed milk for no longer than 2-3 weeks. Some milk products such as fresh milk and yogurt has very limited shelf life. Others such as cheese has a longer shelf life but customer wants to see a 30+ best before date when buying. When processors make such products they do not intend to store for longer than 3-4 weeks and for some it is only days.

Issue lies with milk powder but again I expect that in normal production processors do not plan to have more than a month or 6 weeks product in storage. Again it has a shelf life and end user will have preferred shelf life when buying.

Yes storage may be an issue at present, however that storage may always be an issue at this time of year as milk supply takes off. Having to store milk product for even 2-3 days longer at max milk demand would challenge most processors. that should not be taken to mean that they would prefer that suppliers dryed off cows.

freedominacup

keep going wrote: »

Have no doubt there is s##t loads of dairy products in storage in ireland.someone here mentioned that a ceo wants to bring milk to 17 cent but id say if you told most ceos that we are all drying off the cows no more milk for the rest of the year, they d all breath a huge sigh of relief

If that was the case why aren't we given a price for the coming months now? If they don't want the milk tell us with a forward price and let us make out own minds up from there. All very fine to tell us after they've taken the milk about the huge favour they're doing us and how we should really be paying them for looking after us so well.

whelan2

freedominacup wrote: »

If that was the case why aren't we given a price for the coming months now? If they don't want the milk tell us with a forward price and let us make out own minds up from there. All very fine to tell us after they've taken the milk about the huge favour they're doing us and how we should really be paying them for looking after us so well.

Dawg can post here what price he is getting months in advance, why cant we be told, its no secret Glanbia know what they are paying in advance wouldnt kill them to let us know

Farmer Ed

alps wrote: »

What balance sheet is this product showing up on? Is it showing in the accounts of the coops?

Has this product gone through to some holding company as a sale?

Can co ops set up such holding companies without the showing up on the parent company's books?

I'm very suspicious...

Alps has someone been talking out of school?

freedominacup

alps wrote: »

What balance sheet is this product showing up on? Is it showing in the accounts of the coops?

Has this product gone through to some holding company as a sale?

Can co ops set up such holding companies without the showing up on the parent company's books?

I'm very suspicious...

No balance sheet for GII, no p&l either. However we were shown a massive increase in borrowings on a presentation last month without any mention of product in storage to balance it. It must be great to get accounts for the businesses you own.

patsy_mccabe

Got thinking about this thread last night. Kinda follows on from Bass reeves said about thinking outside the box.
The way I see it, its survival mode now in Dairying. What was Gospel up to now is gone out the window.

I'd be thinking along the lines of major steps like reducing cow numbers, scrapping AI and buying a bull, Slash fertiliser use, less nitrogen, living off the P and K already in the soil. Once a day milking and getting an off farm part time job. Stuff you really wouldn't have considered up to now. Anyone thinking along these lines.... Anyone ????

whelan2

freedominacup wrote: »

No balance sheet for GII, no p&l either. However we were shown a massive increase in borrowings on a presentation last month without any mention of product in storage to balance it. It must be great to get accounts for the businesses you own.

Is the co-op agm on today?

keep going

freedominacup wrote: »

If that was the case why aren't we given a price for the coming months now? If they don't want the milk tell us with a forward price and let us make out own minds up from there. All very fine to tell us after they've taken the milk about the huge favour they're doing us and how we should really be paying them for looking after us so well.

Be cause the intervention runs that were expected to do the year are filling up faster than expected and nobody khows whats go to happen then at the moment.there is even a voluntry scheme to reduce cheese production in ireland at the moment by 10 % but unfortunately all that has hapoened is even more milk is going into mp, butter etc

keep going

alps wrote: »

What balance sheet is this product showing up on? Is it showing in the accounts of the coops?

Has this product gone through to some holding company as a sale?

Can co ops set up such holding companies without the showing up on the parent company's books?

I'm very suspicious...

Have you heard of intervention, it is nt a big warehouse attached onto strasburg, its warehousing being rented here and there convenient to m7lk processors to store product but it isnt a case of filling it up and putting a lockon door until the prices improve.product is constant ly moving in and out to keep in date obviously but the big advantage is you get a checkfor it as opposed to trying to store it yourself and carrying the money so you can pay your milk suppliers

browned

patsy_mccabe wrote: »

Got thinking about this thread last night. Kinda follows on from Bass reeves said about thinking outside the box.
The way I see it, its survival mode now in Dairying. What was Gospel up to now is gone out the window.

I'd be thinking along the lines of major steps like reducing cow numbers, scrapping AI and buying a bull, Slash fertiliser use, less nitrogen, living off the P and K already in the soil. Once a day milking and getting an off farm part time job. Stuff you really wouldn't have considered up to now. Anyone thinking along these lines.... Anyone ????

Reducing cows numbers can be done by culling the poor performers in the herd. Say the bottom 10-15% of the herd. This would reduce your sr which could lead to reduced N usage as you'd have less demand and lower winter feed requirements. With a lower sr you mightn't need as much supplement during the season so could reduce meal feeding. Reduced sr could lend itself to introducing clover to the system and further reduction in N. P k and lime reducion is a false economy as your only reducing the farms capacity to grow grass at the shoulders when you need it most and could lead to other costs. not sure if there is economics in using a bull instead of Ai but it could lead to labour saving. A lot of costs can be cut by matching the sr to the farms ability to grow grass if grass is the primary feed

keep going

kowtow wrote: »

If that is the case aren't you actually thanking carbery for being...

1. Your milk processor and
2. Your combined investment adviser + fund manager?

Is that an appropriate role for a coop in these professional times?

Why not get Carbery to sell the non core assets and return the funds so you can stick them in a hedge fund?

I'm a bit surprised because until now I thought Carbery returns were from the various premium brands including cheese which they are able to turn a margin on?

Not far away from the truth and something I debate with myself now and again, but two things maybe you have to accept that there are guys out there who are cleverer than you maybe you will get a better return with them than what you can acheive yourself and the other, by end of this year I dont think there ll be many carbery suppliers complaining relative to other processors.

Farmer Ed

keep going wrote: »

Have you heard of intervention, it is nt a big warehouse attached onto strasburg, its warehousing being rented here and there convenient to m7lk processors to store product but it isnt a case of filling it up and putting a lockon door until the prices improve.product is constant ly moving in and out to keep in date obviously but the big advantage is you get a checkfor it as opposed to trying to store it yourself and carrying the money so you can pay your milk suppliers

There was a lot of cheese from an East cork store, that was in danger of going out of date,had to be given away otherwise they would have had to pay to dump it. I wouldn't be surprised to see a lot of cheap milk replacer knocking around in the near future.

keep going

Farmer Ed wrote: »

There was a lot of cheese from an East cork store, that was in danger of going out of date,had to be given away otherwise they would have had to pay to dump it. I wouldn't be surprised to see a lot of cheap milk replacer knocking around in the near future.

Havent heard anything like that but things are so f##ked at the moment it wouldnt surprise me

kowtow

keep going wrote:

Not far away from the truth and something I debate with myself now and again, but two things maybe you have to accept that there are guys out there who are cleverer than you maybe you will get a better return with them than what you can acheive yourself and the other, by end of this year I dont think there ll be many carbery suppliers complaining relative to other processors.

I see what you mean.

I've never had to look far to find guys cleverer than me - but I think I'd want at least the freedom to choose who did what. It's a bit unsettling when the butcher does the baking and the bakers make the candlesticks... no matter how good the outcome.

But aside from that I'm still shocked if overall returns from carbery on milk were 21c.. even the ornua ppi is 24 or near in the blend isn't it?

Where are they making the money? Is there something we should know about those bloody trees they keep handing out?

Timmaay

patsy_mccabe wrote: »

Got thinking about this thread last night. Kinda follows on from Bass reeves said about thinking outside the box.
The way I see it, its survival mode now in Dairying. What was Gospel up to now is gone out the window.

I'd be thinking along the lines of major steps like reducing cow numbers, scrapping AI and buying a bull, Slash fertiliser use, less nitrogen, living off the P and K already in the soil. Once a day milking and getting an off farm part time job. Stuff you really wouldn't have considered up to now. Anyone thinking along these lines.... Anyone ????

Some of what you suggest makes sense, however I wouldn't be going that extreme with reducing fertiliser/wholesale culling etc, unless you are hugely overstocked as is, and your cost of production (before wages/tax and repayments) is approaching 30c, however in that case your probably best off just exiting milk 2bh. I'm happy enough with the cost of production here, however I kept too many cows for the housing we had last winter, that alongside it always being difficult to build up a suitable autumn grass wedge with the risk of drought makes it a no brainer for me to cull out the bottom 10% in around September, I'll still get the milk from grass with them, but instead of an autumn and winter of hassle for a cow who will almost definitely lose me money on milk production I'll have a cheque for 800 ish.

keep going

kowtow wrote: »

I see what you mean.

I've never had to look far to find guys cleverer than me - but I think I'd want at least the freedom to choose who did what. It's a bit unsettling when the butcher does the baking and the bakers make the candlesticks... no matter how good the outcome.

But aside from that I'm still shocked if overall returns from carbery on milk were 21c.. even the ornua ppi is 24 or near in the blend isn't it?

Where are they making the money? Is there something we should know about those bloody trees they keep handing out?

Its the trees

Farmer Ed

kowtow wrote: »

I see what you mean.

I've never had to look far to find guys cleverer than me - but I think I'd want at least the freedom to choose who did what. It's a bit unsettling when the butcher does the baking and the bakers make the candlesticks... no matter how good the outcome.

But aside from that I'm still shocked if overall returns from carbery on milk were 21c.. even the ornua ppi is 24 or near in the blend isn't it?

Where are they making the money? Is there something we should know about those bloody trees they keep handing out?

Given the outcome in banking I'm not sure the butcher could have done a much worse Job

WheatenBriar

Glanbia member April milk price held at 24 cpl including 2cpl Co-op support. GII price 22cpl.