Milk Price III

Buford T. Justice XIX

GDT down 0.3%

Timmaay

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12140244

Long read but very interesting. Plenty of people suggested Ireland would go down the Frontera route when quotas went, on reading that thank God we didn't, competition in general is good in my view. And actually on that, the strathroy option has become alot more serious of an option for me here, lorry would have no problem picking us up, also a guaranteed half a cent premium over glanbia, (but currently about 1.5c better), and another half cent bonus for very achievable milk quality targets its a very temping draw for me now.

whelan2

36. 8 for September milk here, 1.5cpl on top of that would be nice

Coolfresian

38.2 c for September milk. Happy with that. No statement up yet. Glanbia supplier.

K.G.

Timmaay wrote: »

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12140244

Long read but very interesting. Plenty of people suggested Ireland would go down the Frontera route when quotas went, on reading that thank God we didn't, competition in general is good in my view. And actually on that, the strathroy option has become alot more serious of an option for me here, lorry would have no problem picking us up, also a guaranteed half a cent premium over glanbia, (but currently about 1.5c better), and another half cent bonus for very achievable milk quality targets its a very temping draw for me now.

well west cork isnt joining with anyone anyway.people often talk about kerry buying carbery buts it more likely kerry want to sell its milk business to carbery. would nt agree with alot of the article to be honest.sucess depends on what way you measure it.alot of guys have become wealthy milking cows in nz up to now and fonterra is fairly efficent at utilising that milk and facilitating.that expansion.yeah their investments have been poor but thats way things go and says more about investing in china than anything else. as for taking in plc investment-thats always been abig sucess in ireland for the price of milk

Mooooo

Dairygold held at 31.5...

Mooooo

2nd text sent with it...

Text 2 of 2: Regrettably, this current milk price does not reflect current market returns as product prices have significantly weakened in recent weeks.

GrasstoMilk

Net price of 41.24c for September
4.77 bf
4.02 pr

Mooooo

Gawddawggonnit wrote: »

33.25 + vat for 3.2pr and 3.8bf until end of the year. Happy enough.

What processor do you supply gawd? Are others paying similar in France?

Gawddawggonnit

Mooooo wrote: »

What processor do you supply gawd? Are others paying similar in France?

I supply a small Coop that’s not a processor per se. It’s where 1200 suppliers pool their milk and sell to many different processors like Savencia, Le Petit Vendéen, Surgères etc etc.
It works very well considering the carry-on of the likes of Lactalis...
One herd, for eg, suppliés Laiterie de Montaigue for baby formula for thé Chinese market, and another supplies Surgères for butter and cheese.
Works well as we seem to always get way better paid than the big processors up north.
My Coop just collect the milk and sell it to local processors. Nothing else.
Methinks if the same were to happen in Ireland the likes of Glanbia would crush such a capitalistic structure, not because they are fond of feudalism mind...

K.G.

Gawddawggonnit wrote: »

33.25 + vat for 3.2pr and 3.8bf until end of the year. Happy enough.

when you say +vat ,is there a vat rebate in france or is it you charging vat to pass on to the gov which i presume it is

Dakota Dan

Mooooo wrote: »

2nd text sent with it...

Text 2 of 2: Regrettably, this current milk price does not reflect current market returns as product prices have significantly weakened in recent weeks.

That second text reads like they are conditioning farmers for a price drop next month and praising themselves for holding price for September.

Gawddawggonnit

K.G. wrote: »

when you say +vat ,is there a vat rebate in france or is it you charging vat to pass on to the gov which i presume it is

No rebates.
No grants.
No subsidies.
No get-out-of-jail-free card!

I’ve yet to see a business, no matter how small, that isn’t registered for vat.
Ireland seems to be the only place that I know of that gets such generous allowances.

Panch18

Gawddawggonnit wrote: »

No rebates.
No grants.
No subsidies.
No get-out-of-jail-free card!

I’ve yet to see a business, no matter how small, that isn’t registered for vat.
Ireland seems to be the only place that I know of that gets such generous allowances.

Oh you are farming in NZ?

For some reason I thought you were farming in the country with the highest subsidies and most protectionist policies in Europe,

whelan2

Anyone know the story with the new fmp liquid milk deal?

Brown Podzol

Dakota Dan wrote: »

That second text reads like they are conditioning farmers for a price drop next month and praising themselves for holding price for September.

Yep. Your being managed, get the Vaseline.

The text does say market conditions in recent weeks.
Hard to believe that they signed longer contracts last spring in the belief that the market wouldn't return a price north of 30 c. for the year, something that the CEO repeated every time he was asked what the price of milk would average for 2018.

jaymla627

Brown Podzol wrote: »

Yep. Your being managed, get the Vaseline.

The text does say market conditions in recent weeks.
Hard to believe that they signed longer contracts last spring in the belief that the market wouldn't return a price north of 30 c. for the year, something that the CEO repeated every time he was asked what the price of milk would average for 2018.

27-28 cent is what butter/smp/wmp would be returning at the minute after processing costs, they might hold for October milk to keep lads milking on a bit longer but the pin will be pulled definitely for December our more then likely November milk given most herds will be dry by the time price is announced

whelan2

jaymla627 wrote: »

27-28 cent is what butter/smp/wmp would be returning at the minute after processing costs, they might hold for October milk to keep lads milking on a bit longer but the pin will be pulled definitely for December our more then likely November milk given most herds will be dry by the time price is announced

Speaking to a few lads they plan to milk on a bit longer this year to pay off some of the bills

alps

jaymla627 wrote: »

27-28 cent is what butter/smp/wmp would be returning at the minute after processing costs, they might hold for October milk to keep lads milking on a bit longer but the pin will be pulled definitely for December our more then likely November milk given most herds will be dry by the time price is announced

The most recent Ornua PPI is at 111.1, capable of returning 33.5c/l..

Yes, markets or at least market sentiment is down, but very doubtful if any processor would be selling such a percentage of their product so short.

Gawddawggonnit

alps wrote: »

The most recent Ornua PPI is at 111.1, capable of returning 33.5c/l..

Yes, markets or at least market sentiment is down, but very doubtful if any processor would be selling such a percentage of their product so short.

Is that VAT inclusive?

Gawddawggonnit

Panch18 wrote: »

Oh you are farming in NZ?

For some reason I thought you were farming in the country with the highest subsidies and most protectionist policies in Europe,

Indeed.

Outside of sfp, I’d like to see a list, please?

alps

Gawddawggonnit wrote: »

Is that VAT inclusive?

Yep......and the input prices we quota also include VAT which we do not reclaim.

Good one for ya...

Relief milker (vat registered) called last evening and making out the bill says there is no vat on relief milking...


Woooow....that's gonna piss someone off

jaymla627

alps wrote: »

The most recent Ornua PPI is at 111.1, capable of returning 33.5c/l..

Yes, markets or at least market sentiment is down, but very doubtful if any processor would be selling such a percentage of their product so short.

They will obviously have a buffer built in, and product forward sold, they might well keep milk at 32 cent going into the new year, but given their tones and going on previous form they will try and get in a price cut before the new year....
Butter was the product that has underpinned milk price in Ireland all year with it falling in price so steeply and smp/wmp on the floor, it would take a pretty extreme winter/spring to put a cap on supply in Europe to the extent of what occurred in 2018, the kiwis are having a great season to and this was another saving grace on export markets last year given their supply was down on 2017 versus 2018, throw the Americans into the mix who are increasing supply year on year, it has all the elements of a glut of milk on world markets that’s going to put serious pressure on prices heading into the 2019 season

Buford T. Justice XIX

Check out @rko2milk’;s Tweet: https://twitter.com/rko2milk/status/1052902965537845248?s=09

alps

Can UK buyers commit to purchases beyond next March?

Gawddawggonnit

alps wrote: »

Yep......and the input prices we quota also include VAT which we do not reclaim.

Lmao!

Feed, fertiliser, lime etc etc are all zero rated?

Gawddawggonnit

alps wrote: »

Can UK buyers commit to purchases beyond next March?

Good question.

I read somewhere that the cheese trade to the UK has been stronger than normal maybe there’s some stockpiling going on?

Wildsurfer

Gawddawggonnit wrote: »

K.G. wrote: »

when you say +vat ,is there a vat rebate in france or is it you charging vat to pass on to the gov which i presume it is

No rebates.
No grants.
No subsidies.
No get-out-of-jail-free card!

I’ve yet to see a business, no matter how small, that isn’t registered for vat.
Ireland seems to be the only place that I know of that gets such generous allowances.

Nobody forced you to go to France. If it's so easy here you should come back...

Gawddawggonnit

Wildsurfer wrote: »

Nobody forced you to go to France. If it's so easy here you should come back...

Correct.

Just pointing out that Irish dairy farmers are one of the most heavily subsidized in the western world.
The narrative of the powers that be is quite the opposite...coupled with the denial that is posted on here.

Just because I speak the truth am I therefore to become your enemy?

jaymla627

Gawddawggonnit wrote: »

Correct.

Just pointing out that Irish dairy farmers are one of the most heavily subsidized in the western world.
The narrative of the powers that be is quite the opposite...coupled with the denial that is posted on here.

Just because I speak the truth am I therefore to become your enemy?

To be fair if the rules under the new nitrates derogation where enforced, the money available in tams wouldn’t even cover 20% of the costs of compliance on some farms for us to be compliant here id basically have to concrete 1.5 km of my farm roadways with tanks every 100 meters our so to catch all run-off from these tracks....
Don’t dare draw anything here from any schemes including sfp, as not to draw any attention on myself, but if push came to shove I’d have to go a fully housed system