Milk Price III

Water John

Your last post says nothing about the 4 paying the best price in 40 years. Don't believe all the spin being sent you direction. So your saying, until the 90s the 4 Coops were price takers?
I live near the fault line with the large processor to their north. Regular rumours of Carbery's demise have been a common feature over the years.
What are these investments each of the 4 have that can return such dividend? I would really like to know what to invest in.

alps

K.G. wrote: »

Theres two levells to the investements in west cork .first is at carbery level which basically means milk is processed at 0 or below cost --profits from outside investments provide capital or repayment capacity to in vest in milk processing and price subsidisation.second level is at member coop level where each has business s which when they preform well gives the capacity to do the same as carbery.milk processing is a very low margin business in ireland

Nice to get that explanation KG.

Water John

Well I don't think I'm stupid but I'm just bewildered by what KG as just posted. Looks like a description of a, money tree to me.
So you're saying Carbery runs at a loss? You'd better tell Dan McSweney that he has been a poor business manager all these years.

Mooooo

Water John wrote: »

Your last post says nothing about the 4 paying the best price in 40 years. Don't believe all the spin being sent you direction. So your saying, until the 90s the 4 Coops were price takers?
I live near the fault line with the large processor to their north. Regular rumours of Carbery's demise have been a common feature over the years.
What are these investments each of the 4 have that can return such dividend? I would really like to know what to invest in.

What's with the talking in riddles? If your going to say something may as well say it out or ask it? I havent heard any rumours and tbh I don't believe rumours that go round these days, same as the stories "such as the lad down the road that's selling have his cows cos he's apparently fcuked " when the opposite is happening

Buford T. Justice XIX

Water John wrote: »

Well I don't think I'm stupid but I'm just bewildered by what KG as just posted. Looks like a description of a, money tree to me.
So you're saying Carbery runs at a loss? You'd better tell Dan McSweney that he has been a poor business manager all these years.

What I think KG meant was Carbery pays back the maximum price to the individual Co-ops and their US investment returns pays for processing costs. Any excess left over would be transferred back to the Co-ops as dividends at the end of the year.


And the individual Co-ops have other individual businesses that they can use to support prices/pay dividends like Co-op stores/mills.

Water John

I am aware of some of the other projects in Ireland the 4 Coops have diversified into. These businesses wouldn't have that type of return and some would require a lot of capital investment. Carbery also has to have retained profits to fund its own regular expansion, upgrade and R & D.

K.G.

I give up.just one last remark,no big rush of outside investers into milk processing-even larry couldnt hack it

whelan2

Any word on StrathRoy price?

Buford T. Justice XIX

GDT down 3.6%

Mooooo

Buford T. Justice V wrote: »

GDT down 3.6%

How much of fonterra product is sold on that platform Now?

Buford T. Justice XIX

Mooooo wrote: »

How much of fonterra product is sold on that platform Now?

No idea, tbh.


A lot less than used to be as they are more focused on moving up the value chain.

alps

Buford T. Justice V wrote: »

No idea, tbh.


A lot less than used to be as they are more focused on moving up the value chain.

Aren't they all....hope that chain is strong..

kevthegaff

Surprised, expected a rise with lower grain yields in europe, oil rising and droughts in europe/Australia. Is there much stock left in intervention?

freedominacup

kevthegaff wrote: »

Surprised, expected a rise with lower grain yields in europe, oil rising and droughts in europe/Australia. Is there much stock left in intervention?

You'd imagine at this stage that manipulating that auction wouldn't be hugely difficult with reasonably deep pockets.

trixi2011

kevthegaff wrote: »

Surprised, expected a rise with lower grain yields in europe, oil rising and droughts in europe/Australia. Is there much stock left in intervention?

According to our milk suppliers action group in the UK,Europes milk pool hasn't declined much if any with the weather events this summer and uk is on par with this time last year . In there view while there is scope for a 1p price increase in the backend and price to hold in the short term they don't see any evidence of widespread price rises .

biblio

K.G. wrote: »

I give up.just one last remark,no big rush of outside investers into milk processing-even larry couldnt hack it

What was Larry's dairy involvement ? I vaguely remember something about Virginia co op or Bailieboro ? He had a seat on the board of Golden Vale due to their involvement with Bailieboro. I think...

6480

biblio wrote: »

What was Larry's dairy involvement ? I vaguely remember something about Virginia co op or Bailieboro ? He had a seat on the board of Golden Vale due to their involvement with Bailieboro. I think...

He tired in early 90 s to take kilshranda creamery (before it was merged into lakeland dairies) over wit a big money offer to all share holders . I remember it would have been a lot of money to the shareholders . He didnt manage it they turned him down

Mooooo

kevthegaff wrote: »

Surprised, expected a rise with lower grain yields in europe, oil rising and droughts in europe/Australia. Is there much stock left in intervention?

Who knows what effect the political goings on stateside or across the small pond will add to the mix as well

Buford T. Justice XIX

kevthegaff wrote: »

Surprised, expected a rise with lower grain yields in europe, oil rising and droughts in europe/Australia. Is there much stock left in intervention?

Iirc, over 200k tonnes but demand was rising and they were thinking of moving to two tenders a month instead of one.

whelan2

What did strathroy pay for July?

whelan2

whelan2 wrote: »

What did strathroy pay for July?

No change 32.67 cpl incl Vat

Buford T. Justice XIX

Another 31k tonnes of skim sold last month and moving to 2 tenders /month so most of the skim overhang gone by Christmas, hopefully.
https://www.farmersjournal.ie/august-smp-sale-recovers-from-previous-months-fall-399817

Buford T. Justice XIX

GDT down 0.7%. Skim up 2.2% and butter down 2.8% so there seems to be a bit of rebalancing in our main categories. The main driver of the drop seems to be a drop of 2.8% in WMP which is a small portion of our product line up.

atlantic mist

http://edairynews.com/en/dairy-co-op-arla-will-give-entire-2018-profit-to-farmers-hit-by-drought-61448/

think all our coops should follow suit for the considering it was the worst year in 160 years, they do love to blag on about being sustainable without an understanding of the word, no hand outs needed just reduce margin to provide for a sustainable supply chain going forward

Calfscour

atlantic mist wrote: »

http://edairynews.com/en/dairy-co-op-arla-will-give-entire-2018-profit-to-farmers-hit-by-drought-61448/

think all our coops should follow suit for the considering it was the worst year in 160 years, they do love to blag on about being sustainable without an understanding of the word, no hand outs needed just reduce margin to provide for a sustainable supply chain going forward

Jesus fair play to them... Our lads will probably cut the price of milk and give themselves a pay rise...

kevthegaff

atlantic mist wrote:

think all our coops should follow suit for the considering it was the worst year in 160 years, they do love to blag on about being sustainable without an understanding of the word, no hand outs needed just reduce margin to provide for a sustainable supply chain going forward

That could set a dangerous precedent, acting in a way like a co op

whelan2

Got a text today to return my liquid milk contract, hadnt come in the post yet at that stage. It has been reduced by 5% . Took a good 5 minutes to find my new contract amount on the new form .

Timmaay

whelan2 wrote: »

Got a text today to return my liquid milk contract, hadnt come in the post yet at that stage. It has been reduced by 5% . Took a good 5 minutes to find my new contract amount on the new form .

Bloody saw that, it's 5% every yr now?

whelan2

Is it just glanbia that are reducing the liquid contract or are other creameries doing it too?

moneyheer

Glanbia we're complaining that the protein was too high in liquid milk last year., Their answer was cap protein leval to be paid on or cut price. Seemingly they can't touch the protein in liquid milk by law.