EU Voluntary Milk Reduction Scheme

tcow

Hi

Just wondering if anyone knows if this EU Voluntary Milk Reduction Scheme is supposed to be going ahead, where you get paid €0.14 per litre of milk not being produced between Oct-Dec this year in comparison to what you produced for the same period last year?

If so, how do you apply?

Is it worth drying off the herd altogether for this period if it goes ahead??

Sam Kade

You have to reduce milk supplies by a percentage over those 3 months so that rules out drying off cows completely. The thing is the cows still need to be fed and a few kgs of ration will keep them milking when solids are high.

Mooooo

Was there talk of it being in phases? As in Oct to Dec, Nov to Jan, Dec to Feb, Jan to Mar. ? If so and if there was any left I'd apply for the Jan to march period simply because that's the way things have worked out here likely to have less milk in those months than previous year. But if early ones are over subscribed I assume there would be no money left for that period

mahoney_j

Had good look at scheme and was discussed at last group meeting ,lots of unknowns and not for me
1 the 14 cent talked about in all likelihood won't materialise.in all likelihood it will be less and on a much smaller ammount of litres than u cut

2 payement .there saying next Feb/March .absoutely no guarntee of that date and in all likelihood later adding to cash flow issues .

3 Autumn time is traditionally the cheapest time of year to produce milk and solids higher which will lead to higher price .

4 cows will still have to be fed and catered for every day
To sum up ,better build a bank of grass ,use as little meal as possible and milk on as normal

stanflt

I'd be inclined to reduce milk from Nov-Jan and give co ops a kick up the backside

They won't be long realising that they have to pay for milk


They don't want the scheme as they won't make money in the milk they can't get their hands on-
Since quotas are gone co ops only care about volume as they will make a margin on every litre they take in at the farmers expenses


Spot milk price in the uk is now 25.55 ppl and we are getting 18 odd plus vat from Glanbia

whelan2

stanflt wrote: »

I'd be inclined to reduce milk from Nov-Jan and give co ops a kick up the backside

They won't be long realising that they have to pay for milk


They don't want the scheme as they won't make money in the milk they can't get their hands on-
Since quotas are gone co ops only care about volume as they will make a margin on every litre they take in at the farmers expenses


Spot milk price in the uk is now 25.55 ppl and we are getting 18 odd plus vat from Glanbia

Will you stay with Glanbia when your contract is up? Leading milk price my....

stanflt

whelan2 wrote: »

Will you stay with Glanbia when your contract is up? Leading milk price my....

Don't have to wait- change your business name and your out of your Msa with no legal problems

Msa aren't worth the paper they are printed on

Dawggone

stanflt wrote: »

I'd be inclined to reduce milk from Nov-Jan and give co ops a kick up the backside

They won't be long realising that they have to pay for milk


They don't want the scheme as they won't make money in the milk they can't get their hands on-
Since quotas are gone co ops only care about volume as they will make a margin on every litre they take in at the farmers expenses


Spot milk price in the uk is now 25.55 ppl and we are getting 18 odd plus vat from Glanbia

I'm not sure that they'd give a damn, but it's always good to give a kick now and again. My crew are always short of milk to fill contracts and are importing milk from the north which is a 750km round trip...but they still won't pay for local milk.

Isn't currency a factor in UK price rise?

stanflt

Dawggone wrote: »

I'm not sure that they'd give a damn, but it's always good to give a kick now and again. My crew are always short of milk to fill contracts and are importing milk from the north which is a 750km round trip...but they still won't pay for local milk.

Isn't currency a factor in UK price rise?

Yes currency big factor

kowtow

stanflt wrote: »

Don't have to wait- change your business name and your out of your Msa with no legal problems

Msa aren't worth the paper they are printed on

Surely you would have to transfer the business to a company, or at the very least enter a temporary partnership (with a company constructed for the purpose if you don't want to actually partner with someone)?

If you are only changing the name, the legal entity is the same even if the trading style has changed - unless the MSA is really really badly drafted?...

kowtow

stanflt wrote: »

Yes currency big factor

If you work on the assumption that the spot milk price is largely linked to the portion of UK milk which goes for export, then between 5-10% of the spot price move (2-3p approx?) would be currency. It's also possible that the UK has been temporarily strongly bid for export milk by buyers trying to mop up on the back of the currency move.

milkprofit

kowtow wrote: »

Surely you would have to transfer the business to a company, or at the very least enter a temporary partnership (with a company constructed for the purpose if you don't want to actually partner with someone)?

If you are only changing the name, the legal entity is the same even if the trading style has changed - unless the MSA is really really badly drafted?...

Yes it contrary to e e c law

tcow

Any sign of prices picking up any time soon?

Sam Kade

tcow wrote: »

Any sign of prices picking up any time soon?

They have stabilised hopefully they will start to rise again.

RightTurnClyde

Our coop has offered a contract for 25% of supply for July to Dec, open to all farmers, no limit on size of pool, no MSA, for July to Dec, with a price of 25c (+3 on current price), + winter bonuses,
Must be worries about year end supply

mahoney_j

RightTurnClyde wrote: »

Our coop has offered a contract for 25% of supply for July to Dec, open to all farmers, no limit on size of pool, no MSA, for July to Dec, with a price of 25c (+3 on current price), + winter bonuses,
Must be worries about year end supply

Coops want milk to protect there margin end of ,as Stan said they couldn't give a stuff about john farmer ,there margin is sacrasent .myvown coop has a large liquid contract to fill and some lads got 50 k ltr liquid contracts for this winter .

Keepgrowing

mahoney_j wrote: »

Coops want milk to protect there margin end of ,as Stan said they couldn't give a stuff about john farmer ,there margin is sacrasent .myvown coop has a large liquid contract to fill and some lads got 50 k ltr liquid contracts for this winter .

50k winter contract, it'll take some amount of those to fill that contract. Problem is that farmers without contract will still produce allowing Tesco cheap milk. Again farmers shooting themselves in the head. If guys with no contract dried off as usual then the coop would be forced to pay more for contracted milk and also issue more contracts.

How big is total milk pool and how big is Tesco contract?

yewtree

RightTurnClyde wrote: »

Our coop has offered a contract for 25% of supply for July to Dec, open to all farmers, no limit on size of pool, no MSA, for July to Dec, with a price of 25c (+3 on current price), + winter bonuses,
Must be worries about year end supply

I think there is a growing worry in the coops about supply for the rest of the year, day to day supplies are slipping. If price continues at current level a lot of guys who milk through could dry off and culls might be sold earlier to help cash flow

Mooooo

mahoney_j wrote: »

RightTurnClyde wrote: »

Our coop has offered a contract for 25% of supply for July to Dec, open to all farmers, no limit on size of pool, no MSA, for July to Dec, with a price of 25c (+3 on current price), + winter bonuses,
Must be worries about year end supply

Coops want milk to protect there margin end of ,as Stan said they couldn't give a stuff about john farmer ,there margin is sacrasent .myvown coop has a large liquid contract to fill and some lads got 50 k ltr liquid contracts for this winter .

Is that targeted at spring lads to keep going? When was the tesco contract won? Had they not enough lined up in house to supply it? Will dairy gold winter milk be heading to nenagh again?

kevthegaff

Is it possible to milk on late/empty cows to fill a liquid contract or would lactose be a problem

Mooooo

4.5 is lactose limit in dairygold. Some can manage it with late calvers if diet is bang on but breeding helps too, if a group of late calvers and empties there could milk on and cull in Feb to cover winter period depending on breakdown 50k litres could be manageable if getting a bonus for it. Have 30 calving in autumn here to cover circa 190k litres

Sam Kade

Mooooo wrote: »

4.5 is lactose limit in dairygold. Some can manage it with late calvers if diet is bang on but breeding helps too, if a group of late calvers and empties there could milk on and cull in Feb to cover winter period depending on breakdown 50k litres could be manageable if getting a bonus for it. Have 30 calving in autumn here to cover circa 190k litres

Two tests under 4 is the limit for lactose in Dairygold.

atlantic mist

could this year be used as reference year if they try and reintroduce some sort of quota? ag consultant raised the issue wit us.

dont think well be entering scheme considering well be 20% ahead of supply last year so the reduction this year would be much bigger than if we kept herd at a constant, scheme will probable suit mainland eu more as they have been looking to curtail production with a few months so id imagine they have tweaked their system well advance of announcement

Mooooo

Winter milk scheme is lactose must average 4.5 each month Nov to Feb. If it drops 4.45 I think u get 75% of bonus and below that none.

Timmaay

kevthegaff wrote: »

Is it possible to milk on late/empty cows to fill a liquid contract or would lactose be a problem

Hopefully ha, that's what I'm doing this year! Worst case scenario I'll pickup afew mid jan calving heifers, not may replacements coming through here anymore.