glanbia mik supply aggrement

sheebadog

Why not do as our crowd here do?
The producers sell to a "holding" company who then sells on to the processors. Weekly auctions to the highest bidders. Getting 37cpl plus vat now with an extra 2cpl in August and September.

atlantic mist

sheebadog wrote: »

Why not do as our crowd here do?
The producers sell to a "holding" company who then sells on to the processors. Weekly auctions to the highest bidders. Getting 37cpl plus vat now with an extra 2cpl in August and September.

hi sheebadog im just wondering where are you based?

Milked out

sheebadog wrote: »

Why not do as our crowd here do?
The producers sell to a "holding" company who then sells on to the processors. Weekly auctions to the highest bidders. Getting 37cpl plus vat now with an extra 2cpl in August and

How has that worked out in the poor price years like 09'? Would much of your milk go for fresh supply or is it all processed? Theoretically a coop should even out the peaks and troughs by not being as fast to drop the price whereas with an auction price may go up faster but also down faster.
By right every farmer should be able to manage volatility in house, at the same time we should look for the best price for our product, which is what the coops were set up to try and deliver. Also managing volatility can be difficult with the banks acting the b******s these days esp for those of us looking to expand or invest on farm.

freedominacup

Milked out wrote: »

sheebadog wrote: »

Why not do as our crowd here do?
The producers sell to a "holding" company who then sells on to the processors. Weekly auctions to the highest bidders. Getting 37cpl plus vat now with an extra 2cpl in August and

How has that worked out in the poor price years like 09'? Would much of your milk go for fresh supply or is it all processed? Theoretically a coop should even out the peaks and troughs by not being as fast to drop the price whereas with an auction price may go up faster but also down faster.
By right every farmer should be able to manage volatility in house, at the same time we should look for the best price for our product, which is what the coops were set up to try and deliver. Also managing volatility can be difficult with the banks acting the b******s these days esp for those of us looking to expand or invest on farm.

GII is not a co-op it's not even wholly owned by a co-op.

sheebadog

No such thing a fresh milk here. Can't be bought in any shop. I do a lively trade with locals buying milk straight from parlor so all milk is processed.
In 09 milk went to 21cpl for two months then after some "mild" protests it went to 27cpl.
All proper co-op's here. Very socialist country is France.

atlantic mist

its not wholly owned by dairy farmers either!!

Mr Mango cake

Greengrass1 wrote: »

Only read parts of it yet. You would really want to read it a dozen times. Still dontbthink we should sign it. Glanbia are scared of competition and that's the main idea behind this.
Good example of what happened when stratjroy cane to Wexford

You are so right there Glanbia don't like competition but then what bully dose.

Mr Mango cake

mf240 wrote: »

No seasonality if you dont sign.

Im struggling with it to be honest. Paragraph 2.2 is a bit worrying

What is 2.2 what way are you woryring re this

mf240

Well lads.

Did you take this creamery to be your lawfully wedded processor.

And forsaking all others agree to supply this creamery all the days of you life.

In sickness and health, for their richer and your poorer so long as your cows shall live.

What one team of solitors have joined together let no one man pull asunder.

You are now joined in bovine mammarys.

Well se ye at the hotel later theres free cheese for everyone.

castletrader

Did not sign any way.We will see what happens next.

whelan2

castletrader wrote: »

Did not sign any way.We will see what happens next.

whens the closing date?

mf240

Today.

I didnt sign either.

whelan2

wonder what the % signing rate was/is

stanflt

NOT SIGNING

More loyalty bonus for me so!!!!!!!!

frazzledhome

NOT SIGNING

stanflt wrote: »

More loyalty bonus for me so!!!!!!!!

I fail to see what's changed

whitebriar

stanflt wrote: »

More loyalty bonus for me so!!!!!!!!

but that 'June' bonus is on manufacturing only for early signing of the contract.
Anecdotally from what's being told to me,whether people are telling the truth or not,less than half have signed.
Now that's not sustainable.Imagine half of the suppliers being barred from all the various bonus schemes or fixed price schemes going forward? GII would have a mess.
Mind you fixed price schemes are designed to benefit Giii aren't they

jaymla627

whitebriar wrote: »

but that 'June' bonus is on manufacturing only for early signing of the contract.
Anecdotally from what's being told to me,whether people are telling the truth or not,less than half have signed.
Now that's not sustainable.Imagine half of the suppliers being barred from all the various bonus schemes or fixed price schemes going forward? GII would have a mess.
Mind you fixed price schemes are designed to benefit Giii aren't they

They seem to be getting very pushy about getting this contract signed, milk advisor was up with it us for the second time in 10 days yesterday trying to get us to sign, was politely told no again for the secind time.

Greengrass1

jaymla627 wrote: »

They seem to be getting very pushy about getting this contract signed, milk advisor was up with it us for the second time in 10 days yesterday trying to get us to sign, was politely told no again for the secind time.

Why won't you sign. We signed here

jack o shea

hold firm and dont sign lads, 2 differant lads from glanbia have rang me looking to know why i havnt signed,they can go fcuk.no other business me would sign this so why should we?they cut 2 cent a litre before lads signed what do you think they will do if everyone signs this bull****?

Timmaay

Hmmmmm I don't know much about contract law ha, but what's to stop you from breaking it, telling Glanbia stuff it, and joining a new supplier before your contract is up?

Not that I've any intention of doing this ha, I'm just asking the question!

frazzledhome

NOT SIGNING

Greengrass1 wrote: »

Why won't you sign. We signed here

Because people love a cause, it's what keeps them going.

You've got Bogs, gas pipes, Greenfield, pylons, wind turbines, motorways etc.

Why lads can't concentrate on running their own business to the max and control what they can instead of trying to second guess everything else beats me? If price is such a worry why didn't more take the fixed scheme? It actually secured a margin. Lads love giving out.

What do people think will happen? Are GII going to drop the price by 5c more than other processors when all contracts are signed? FFS we freed up our money to build more processing capacity something we need and now we can't commit to filling it, nuts!!

If they pay way less than everyone else I'll leave regardless of contract and they can sue me if they like.

Timmaay

frazzledhome wrote: »

If they pay way less than everyone else I'll leave regardless of contract and they can sue me if they like.

This was what I was getting at in my previous comment, Glanbia start paying all the farmers a crap price and we'll all just walk anyways. I'm all signed up now.

Mr Mango cake

Greengrass1 wrote: »

Why won't you sign. We signed here

Really did you sign your msa ? First of all why did you sign ? Also did you show this legally binding contract to your solicitor or account or even your bank manager .
I don't mean to be rude to you but did you even read it fully your self .

Greengrass1

Mr Mango cake wrote: »

Really did you sign your msa ? First of all why did you sign ? Also did you show this legally binding contract to your solicitor or account or even your bank manager .
I don't mean to be rude to you but did you even read it fully your self .

Yes we did. Who else was I going to supply? Strathroy? A one trick pony? They only really came down this end if the country because aldi said they wanted to stock Irish milk in their stores.
Come on sign something that has an impact on your business without reading it?

stanflt

NOT SIGNING

Mr Mango cake wrote: »

Really did you sign your msa ? First of all why did you sign ? Also did you show this legally binding contract to your solicitor or account or even your bank manager .
I don't mean to be rude to you but did you even read it fully your self .

I signed no problem- we've been supplying Glanbia or Waterford or premier or mervue for 100 years
They always paid for the milk we supplied
They always collected the milk

Each co op needs to garentee that they will have x amount of milk for extra contracts
Say we all start jumping suppliers and then some co ops loss orders they won't be able to take your milk- how you'd you like if you went out one morning and the milk wasn't going to be collected- you'd ring the other supplier and he'd take your milk- all of a sudden he can pay way less for milk as no competition

Simple economic rules of supply and demand on a different scenario

We could potentially ruin the milk price ourselves by not signing

jaymla627

Timmaay wrote: »

Hmmmmm I don't know much about contract law ha, but what's to stop you from breaking it, telling Glanbia stuff it, and joining a new supplier before your contract is up?

Not that I've any intention of doing this ha, I'm just asking the question!

Given the legal team that they would have at their disposal and the fact they would have no problem spending millions defending the legality of this contract in a court of law should any farmer even try and break it they will come down on you like a ton of bricks.
Would imagen signing this contract is no different then the lease on a machine our a loan from a bank its a legally binding document, that you have signed and must honour.

atlantic mist

we signed here, were supplying since establishment of coop, i felt supply agreements went a bit over the top especially after putting our money up on table for expansion, very little input from suppliers to contract

why did they not sort out contracts before expansion/joint venture surly that would have been the prudent thing to do so we no exactly what we want for processing instead of building first and then looking to secure supplies, seems backwards

we only produce so much milk here so competition for supplies will increase in years to come

is there any other industry in the world where the buying company has suppliers contracts that they can only supply them and if they want to supply anyone else they will take them to court!!

cant see gii or another coop turning down milk into the future if it doesnt work with stratroy, be interesting to see next time lidl contract comes up are the liquid gold lads goin to take a hammering to under cut strat

simx

Greengrass1 wrote: »

Why won't you sign. We signed here

i see in the poll results you werent signing first, im curious why you changed your mind?

slippy wicket

NOT SIGNING

jaymla627 wrote: »

Given the legal team that they would have at their disposal and the fact they would have no problem spending millions defending the legality of this contract in a court of law should any farmer even try and break it they will come down on you like a ton of bricks.
Would imagen signing this contract is no different then the lease on a machine our a loan from a bank its a legally binding document, that you have signed and must honour.

Would ya get out a that bat**** crazy stuff.
The only way Glanbia can function is on goodwill. No matter how grudging.
Its not in their interest to come down like a ton of bricks on anyone if they decide to leave as they would annoy all the rest of their suppliers.

The paranoia of some people is worrying.

jaymla627

Greengrass1 wrote: »

Why won't you sign. We signed here

Why would i sign at the present mineute, the 1c/l bonus on June milk isnt worth talking about and due to quota issues i wont be getting the seasonality scheme bonus anyway this year, on a side note heard a good story regarding Glanbia from a neighbouring farmer whos brother has a grain storage facility and had been dealing with Glanbia for donkeys year handling their grain.
Anyways due to the low rates they where paying and his pleas for a small increase falling on deaf years he made a few calls and just like that he secured a much better deal with another major company in the area, one of the top lads from Glanbia was on the phone the next day promising the sun ,moon and stars if he stayed with them but he was told where to go, its never a bad thing to have the option to switch suppliers if your getting a raw deal and is how any proper functioning company/business grows and makes a profit signing these contracts fore goes all of this and leaves you at the mercy of some prick in a suit who literally has you by the balls.

Greengrass1

simx wrote: »

i see in the poll results you werent signing first, im curious why you changed your mind?

Couldn't afford to not get bonuses. And we had always supplied and always been paid and treated fair. And as frazz says if they do start to pay below par farmers will leave regardless of repercussions

freedominacup

Mr Mango cake wrote: »

Really did you sign your msa ? First of all why did you sign ? Also did you show this legally binding contract to your solicitor or account or even your bank manager .
I don't mean to be rude to you but did you even read it fully your self .

I gave it to my solicitor. He's a farmers son so understands the issues. He said it was a terrible contract from a milk suppliers point of view but asked me what options I had to supply elsewhere knowing full well there weren't any. It's a bad deal but not signing it would only exclude us from any bonus scheme which would be cutting your nose off to spite your face.

The only hope we have is an amendment to the eu directive on co-op contracts that includes companies where co-ops are majority shareholders and the co-op shareholders are supplying the company. We were getting screwed by the founding of gii but couldn't see it.

We were sold a line about co-op control of processing when all that changed was we are now supplying a private ltd company instead of a public one. If it goes well it'll be floated and we will have to cede more control and again have our milk price set at the behest of hedge funds and pension companies. If it goes badly we'll be forced to sell glanbia plc shares at the bottom of the market to keep gii from going tits up.

stretch film

freedominacup wrote: »

I gave it to my solicitor. He's a farmers son so understands the issues. He said it was a terrible contract from a milk suppliers point of view but asked me what options I had to supply elsewhere knowing full well there weren't any. It's a bad deal but not signing it would only exclude us from any bonus scheme which would be cutting your nose off to spite your face.

The only hope we have is an amendment to the eu directive on co-op contracts that includes companies where co-ops are majority shareholders and the co-op shareholders are supplying the company. We were getting screwed by the founding of gii but couldn't see it.

We were sold a line about co-op control of processing when all that changed was we are now supplying a private ltd company instead of a public one. If it goes well it'll be floated and we will have to cede more control and again have our milk price set at the behest of hedge funds and pension companies. If it goes badly we'll be forced to sell glanbia plc shares at the bottom of the market to keep gii from going tits up.

And no set of accounts to show us the way the tits are pointing. You get used to it after a while . Onto my second tub of vaseline as this stage

mf240

frazzledhome wrote: »

Because people love a cause, it's what keeps them going.

You've got Bogs, gas pipes, Greenfield, pylons, wind turbines, motorways etc.

Why lads can't concentrate on running their own business to the max and control what they can instead of trying to second guess everything else beats me? If price is such a worry why didn't more take the fixed scheme? It actually secured a margin. Lads love giving out.

What do people think will happen? Are GII going to drop the price by 5c more than other processors when all contracts are signed? FFS we freed up our money to build more processing capacity something we need and now we can't commit to filling it, nuts!!

If they pay way less than everyone else I'll leave regardless of contract and they can sue me if they like.

You wont leave .

Im not looking for a cause im just keeping my options open.

2 cent a litre across my years milk is 6 grand and im a small fry. Im not giving up the chance to move for the sake of a 500 loyalty bonus.

No hero or martridism here just good old business sense. I hope i will be still suppliying glanbia in five years.

freedominacup

stretch film wrote: »

And no set of accounts to show us the way the tits are pointing. You get used to it after a while . Onto my second tub of vaseline as this stage

There'll have to be some accounts published. They'll be historic and as vague as possible, there are regs governing how comprehensive the published accounts must be based on the size of the business.

whitebriar

stanflt wrote: »

I signed no problem- we've been supplying Glanbia or Waterford or premier or mervue for 100 years
They always paid for the milk we supplied
They always collected the milk

Each co op needs to garentee that they will have x amount of milk for extra contracts
Say we all start jumping suppliers and then some co ops loss orders they won't be able to take your milk- how you'd you like if you went out one morning and the milk wasn't going to be collected- you'd ring the other supplier and he'd take your milk- all of a sudden he can pay way less for milk as no competition

Simple economic rules of supply and demand on a different scenario

We could potentially ruin the milk price ourselves by not signing

you make valid points and I agree with you and I am on the same page as you on the above.
However it is as obvious as the day is long that these msa's were cobbled together for one reason and one reason only and that was to thwart strathroy or any other company (including Ferdia btw) from 'poaching' suppliers.
As a business person,that blackmail anti competitive ploy pisses me off.

Who exactly were the farmers GII say were saying these msa's were what farmers were asking for? That was laughable.
At the very least,the msa should have had meetings on the scale of those in the run up to the creation of GII and a better version could have been voted on.
But of course GII rushed this through in their panic at the bleed of suppliers to Strathroy. Scarey management tbh...

Where were Strathroy by the way when milk price down here was 20c a litre? Not that long ago and please God never a state we will return to?They are no saints either.

As regards what others say here about getting out of the contract.Have no doubt in your mind that GII will sue the processor you join,not just you.

Farmers too have a higher proportion of people that speak out of both sides of their mouths sadly so if GII do start acting the maggot price wise,I wouldn't be wanting to rely on the cover of unity to cut and run to Strathroy or one of the others either.

Nope a lot of people on both sides of this argument need to cop on and play the longer game.If you are not signing,have the Balls to hand in your notice.
If you are signing,keep your wits about you.
I actually don't think as I said at the start of this post that the purpose of the msa is to get the cheapest milk into belview possible but it is worrying that the tools are there now to do that.

stanflt

NOT SIGNING

whitebriar wrote: »

you make valid points and I agree with you and I am on the same page as you on the above.
However it is as obvious as the day is long that these msa's were cobbled together for one reason and one reason only and that was to thwart strathroy or any other company (including Ferdia btw) from 'poaching' suppliers.
As a business person,that blackmail anti competitive ploy pisses me off.

Who exactly were the farmers GII say were saying these msa's were what farmers were asking for? That was laughable.
At the very least,the msa should have had meetings on the scale of those in the run up to the creation of GII and a better version could have been voted on.
But of course GII rushed this through in their panic at the bleed of suppliers to Strathroy. Scarey management tbh...

Where were Strathroy by the way when milk price down here was 20c a litre? Not that long ago and please God never a state we will return to?They are no saints either.

As regards what others say here about getting out of the contract.Have no doubt in your mind that GII will sue the processor you join,not just you.

Farmers too have a higher proportion of people that speak out of both sides of their mouths sadly so if GII do start acting the maggot price wise,I wouldn't be wanting to rely on the cover of unity to cut and run to Strathroy or one of the others either.

Nope a lot of people on both sides of this argument need to cop on and play the longer game.If you are not signing,have the Balls to hand in your notice.
If you are signing,keep your wits about you.
I actually don't think as I said at the start of this post that the purpose of the msa is to get the cheapest milk into belview possible but it is worrying that the tools are there now to do that.

Msa has nothing to do with liquid milk- liquid milk contract still has to be signed annually
So you could still move to strathroy or any other liquid milk processor If you wished

whitebriar

stanflt wrote: »

Msa has nothing to do with liquid milk- liquid milk contract still has to be signed annually
So you could still move to strathroy or any other liquid milk processor If you wished

The Msa governs all the milk you produce.
If you reduce the quantity of liquid you supply or stop liquid altogether,you are contracted to supply the new surplus to GII.So no you cannot switch liquid either.

stanflt

NOT SIGNING

whitebriar wrote: »

The Msa governs all the milk you produce.
If you reduce the quantity of liquid you supply or stop liquid altogether,you are contracted to supply the new surplus to GII.So no you cannot switch liquid either.

I'd check that out again if I were you
Were you in kilashee house for the meeting

stretch film

You can take your liquid supply outside of glanbia while still supplying giil.

whitebriar

Guys can you post up verbatim where that is provisioned in the contract as mine is with my solicitor,who won't appreciate a call of a Saturday evening.I do recall reading sections governing exclusivity but nothing specifically entitling me to walk with liquid.
If it is the case what's to stop suppliers buying liquid milk contracts as a way out?
Do you think two milk lorries collecting is practical? Ergo making a bit of freedom with some of your milk moot.

slippy wicket

NOT SIGNING

GIIL is pleased to announce a 93% sign up of its Milk Supply Agreements. A bonus of 2.5m euro will be paid in July to those who signed. Thanks to all who signed

Just received text.

lefthooker

Fr Dougal: is that 2.5m each Ted?
No wait it's between the two of us:rolleyes:

atlantic mist

does the reduction of 1 cents less in last month milk chq cover the bonus to b paid in july?

mf240

atlantic mist wrote: »

does the reduction of 1 cents less in last month milk chq cover the bonus to b paid in july?

Almost twice.

knockmulliner

Yes yet again Glanbia are paying you with your own money for the right to take your milkk on whatever price and terms it may decide and you cannot do a thing about it. 93% they say signed up, and they always tell the truth surrendered willingly their rights in law, without a murmur from IFA or ICMSA whose levies will continue to be collected by Glanbia.

glanroy

knockmulliner wrote: »

Yes yet again Glanbia are paying you with your own money for the right to take your milkk on whatever price and terms it may decide and you cannot do a thing about it. 93% they say signed up, and they always tell the truth surrendered willingly their rights in law, without a murmur from IFA or ICMSA whose levies will continue to be collected by Glanbia.

Have to agree with your opinion .Too many yes men on here .About time we stood up to the Glanbia bullying.

whelan2

glanroy wrote: »

Have to agree with your opinion .Too many yes men on here .About time we stood up to the Glanbia bullying.

will never happen, its the same as the beef factories unfortunately

frazzledhome

NOT SIGNING

whelan2 wrote: »

will never happen, its the same as the beef factories unfortunately

Expand?????

whelan2

frazzledhome wrote: »

Expand?????

each to their own, i have my opinion on glanbia and you have yours, the 2 cent milk drop just confirmed mine....