Milk Price III

mahoney_j

Finest wrote: »

The audit simply shows how much each processor paid for its manufacturing milk pool . It also happens to show some other info as a consequence of this like solids . I've got to tip my hat to the cork and kilkenny farmers for their solids always being at the top . Funny thing that the same culprits are always at the bottom. The commentary on the last page is interesting and seems to suggest that carbery dg and glanbia are capable of paying a higher price whereas tipp , arrabawn and Aurivo don't seem to have as much scope.

Wouldn’t agree with last line ,every coop has scope to pay more to there suppliers .that Kpng audit is flawed in ways

Finest

mahoney_j wrote: »

Wouldn’t agree with last line ,every coop has scope to pay more to there suppliers .that Kpng audit is flawed in ways

An extra 1 cent for glanbia is 30% of profit I think and 1 cent for tipp or arrabawn is at least 80% all have scope but some have more than others . If plants have to be improved to cope with ever expanding milk supply this scope could be important ??

jaymla627

Finest wrote: »

mahoney_j wrote: »

Wouldn’t agree with last line ,every coop has scope to pay more to there suppliers .that Kpng audit is flawed in ways

An extra 1 cent for glanbia is 30% of profit I think and 1 cent for tipp or arrabawn is at least 80% all have scope but some have more than others . If plants have to be improved to cope with ever expanding milk supply this scope could be important ??

Finest wrote: »

mahoney_j wrote: »

Wouldn’t agree with last line ,every coop has scope to pay more to there suppliers .that Kpng audit is flawed in ways

An extra 1 cent for glanbia is 30% of profit I think and 1 cent for tipp or arrabawn is at least 80% all have scope but some have more than others . If plants have to be improved to cope with ever expanding milk supply this scope could be important ??

Milk supply will be down on 2017, the % depends on how long this drought lasts,
all this shiny new stainless steel going up mighten be needed at all, ballyragget is currently taking milk from any co-op that will supply them such is the shortfall in supply from glanbia suppliers

Buford T. Justice XIX

A little bit of good news on skim with the EU deciding to start twice monthly skim sales.
https://www.farmersjournal.ie/commission-progresses-plan-to-double-monthly-smp-sale-385978
And now only 300k tonnes of skim remaining in intervention.


And India announcing an export subsidy package (c.E625/t) to dump 60k tonnes of skim onto the world market in an effort to prevent the collapse of a major dairy Co-op.
https://www.farmersjournal.ie/monday-dairy-markets-smp-prices-fall-as-india-dumps-60-000t-on-world-markets-380867
This would explain the drop in skim price at the last GDT.

whelan2

Any idea on June milk price?

farmersfriend

whelan2 wrote: »

Any idea on June milk price?

its being st on Thursday as far as I know

mahoney_j

whelan2 wrote: »

Any idea on June milk price?

I’d be expecting glanbia to give ye a 1 cent top up on all Jan to June milk like last year as well as announce an increase on base price ,they should also be paying interest on top of that 1 cent top up but unlikely to happen .fully expecting a 1 cent increase minimum increase for Arrabawn .markets fully justify it atm

whelan2

mahoney_j wrote: »

I’d be expecting glanbia to give ye a 1 cent top up on all Jan to June milk like last year as well as announce an increase on base price ,they should also be paying interest on top of that 1 cent top up but unlikely to happen .fully expecting a 1 cent increase minimum increase for Arrabawn .markets fully justify it atm

Should be more than a 1cpl top up imo

mf240

mahoney_j wrote: »

I’d be expecting glanbia to give ye a 1 cent top up on all Jan to June milk like last year as well as announce an increase on base price ,they should also be paying interest on top of that 1 cent top up but unlikely to happen .fully expecting a 1 cent increase minimum increase for Arrabawn .markets fully justify it atm

Id be expecting them to give a 2 cent at least top up for first 6 months and increase price to a competitive level.

They would be advised to consider that farmers are currently weighing up the options of supplementing cows versus culling cows.

kevthegaff

Any word on that flexi loan with arrabawn yet?

mahoney_j

kevthegaff wrote: »

Any word on that flexi loan with arrabawn yet?

Yep it’s thru Kev and open for applications .meeting in abbey court about it few weeks back .ill dm u a contact of a local finance Ireland rep that is dealing with it later .very attractive lowish interest loan with the highlight been flexibility in repayments depending on milk price and no need for solicitors or security outside of signing 8 year MSa with Arrabawn ,few draw backs too

Buford T. Justice XIX

mahoney_j wrote: »

Yep it’s thru Kev and open for applications .meeting in abbey court about it few weeks back .ill dm u a contact of a local finance Ireland rep that is dealing with it later .very attractive lowish interest loan with the highlight been flexibility in repayments depending on milk price and no need for solicitors or security outside of signing 8 year MSa with Arrabawn ,few draw backs too

Kerry are offering much the same through BOI with a 4.5% interest rate. Missing repayments can be taken from milk cheques so an added security from the banks perspective.

kevthegaff

mahoney_j wrote: »

Yep it’s thru Kev and open for applications .meeting in abbey court about it few weeks back .ill dm u a contact of a local finance Ireland rep that is dealing with it later .very attractive lowish interest loan with the highlight been flexibility in repayments depending on milk price and no need for solicitors or security outside of signing 8 year MSa with Arrabawn ,few draw backs too

Sound j 8 years msa looksa abit steep tho

mahoney_j

kevthegaff wrote: »

Sound j 8 years msa looksa abit steep tho

As things stand and with current plans for coop I’ve no issue with it Kev .getting and setting up security with solicitors etc as well as paying higher interest with banks would be more costly

whelan2

mf240 wrote: »

Id be expecting them to give a 2 cent at least top up for first 6 months and increase price to a competitive level.

They would be advised to consider that farmers are currently weighing up the options of supplementing cows versus culling cows.

The one thing at the back of my mind is if - has been stated here and elsewhere - milk is coming into glanbia from lakelands etc at a much higher rate than normal. Where is their loyalty to their own suppliers? Do they need to pay an increase to their "loyal" suppliers at all?

Water John

Surely the MSA should be the same term as the loan? What is the interest rate, any detail yet?

alps

Water John wrote: »

Surely the MSA should be the same term as the loan? What is the interest rate, any detail yet?

The MSA is the same term as the loan.....You can redeem the loan as early as you like. .

At the end of the loan period, you revert to your normal coop MSA, however I havn't seen detail of what happens in the event of an early loan redemption...I expect that this will be the same.

My ear pieces have suggested to me that one of the bigger processors, who is not currently spinning out this facility, has concerns with the.....MSA

Could you credit that??

Mooooo

Are these loans coming from the coop or the bank thru the coop? Tbh lads it's yer own business but my accountant said this to me and I'm inclined to Agree, deal with the banks yerselves and keep the coop out of the middle of it

mahoney_j

Mooooo wrote: »

Are these loans coming from the coop or the bank thru the coop? Tbh lads it's yer own business but my accountant said this to me and I'm inclined to Agree, deal with the banks yerselves and keep the coop out of the middle of it

Money comming thru finance Ireland ,coop facilitating it and the security for finance Ireland is the msa .interest rate is 4.18% .it is very attractive due to the interest rate ,the flexibility ,the lack of solicitors and need for land security

whelan2

mahoney_j wrote: »

Money comming thru finance Ireland ,coop facilitating it and the security for finance Ireland is the msa .interest rate is 4.18% .it is very attractive due to the interest rate ,the flexibility ,the lack of solicitors and need for land security

Any scheme or trading account where your milk cheque can be stopped before you get it is not worth entertaining imo. It is your money

jaymla627

whelan2 wrote: »

mahoney_j wrote: »

Money comming thru finance Ireland ,coop facilitating it and the security for finance Ireland is the msa .interest rate is 4.18% .it is very attractive due to the interest rate ,the flexibility ,the lack of solicitors and need for land security

Any scheme or trading account where your milk cheque can be stopped before you get it is not worth entertaining imo. It is your money

All payments are sechuled and you have a printout detailing what's coming out each month, for duration of loan, i owe no land myself and drew down a good sized loan from milk-flex last year, would of been laughed out of the bank if I went in looking for a loan when I had no hardcore assets as collateral

alps

Looks a very attractive product for certain circumstances, particularly for those with no security available, or those that have all their security tied up with a single institution.

Ideal for parlour, calving facilities etc...items where you could see the pay down period being matched to a depreciation term and not incurring the cost of solicitors as Mahoney says, and a better interest rate than may be available to someone with all security tied in to one bank and no option to move to another...

The interest rate, euribor plus 3.5..I believe, is not out of line either, and serves as a good marker for those negotiating with their own bank.

This offering, originally rolled out to glanbia farmers had a massive effect in reducing rates overall, 2 years ago...

It's important to recognise that this product is not offered through your coop, nor has your coop any connection or input to it other than if you are successful in securing a loan through finance Ireland, your coop will facilitate the new MSA with finance Ireland, and will collect repayments for finance Ireland.

farisfat

whelan2 wrote: »

Any scheme or trading account where your milk cheque can be stopped before you get it is not worth entertaining imo. It is your money

I'm going to try and restructure my bank loans through milk flex.....more money in my pocket.

Keepgrowing

farisfat wrote: »

I'm going to try and restructure my bank loans through milk flex.....more money in my pocket.

Think long and hard on this. Be sure the term in long enough, monies over a longer period even at a higher rate may well be more astute. Not in any way running down milk flex as it’s a super product

Mooooo

The bank have the deeds here anyway, have the life insurance policy set to cover a fair amount constantly so in my case it'll just be a case of dealing with the bank anyway. Product is an option and at least puts some competition on the banks but would prefer to keep em seperate if I can

Finest

I wonder what will this MSA look like and what will the consequences be if a farmer can't stay milking for health reasons etc how does a coop/ finance ireland recoup it's money.
I would also say that if farmers are tied up in one bank and can't access finance there , they have no business taking this money. Will some farmers use this as a way of increasing already unsustainable debt or are there safeguards to prevent this

Finest

Lakelands hold price not a great effort from a coop that paid a very bad price for its manufacturing milk pool last year . Lakelands suppliers / shareholders have already taken on the troubled fane valley coop and now seem hell bent on sorting out lackpatrick doesn't bode well for milk price going forward given that this is a coop operating on very tight margins. Wouldn't coops on tight margins already paying a poor price be better off capping or controlling production than trying to expand gung-ho

Buford T. Justice XIX

For those that want to keep track, there is a new GDT app in both Apple and Android called GDT results. I'm assuming it can be set up to alert for results but I haven't gone through it yet. Next auction on 17th of this month.

whelan2

Glanbia up 2cpl to 31cpl base and 1 cpl makey up payment no mention of top up for last 6 months. On glanbia connect

Finest

whelan2 wrote: »

Glanbia up 2cpl to 31cpl base and 1 cpl makey up payment no mention of top up for last 6 months. On glanbia connect

I wouldn't panic yet , it was mid September when the top up was announced last year afaik
Glanbia will need some time to calculate all the other coops prices so they can give just enough to put then a nose in front of all but carbery