Milk Price III

ozil10

Just curious to know what farm organisations(IFA.ICMSA etc)actually do with regard dealing with milk processors when they are setting milk prices.
Articles saying farm organisations urging milk processors to hold milk price when you could clearly see with the high volume of milk and uncertainty over brexit. They were going to cut the price.
What influence do these organisations actually have??
It's very little from what I can see

jaymla627

ozil10 wrote: »

Just curious to know what farm organisations(IFA.ICMSA etc)actually do with regard dealing with milk processors when they are setting milk prices.
Articles saying farm organisations urging milk processors to hold milk price when you could clearly see with the high volume of milk and uncertainty over brexit. They were going to cut the price.
What influence do these organisations actually have??
It's very little from what I can see

They’re white noise in the background for the most part, the latest hissyfits about cuts and how European markets are returning 2-4 cent more are all easily explained when you delve into the fact most European processors are running plants very efficiently with a good all year round supply of milk coming in and haven’t had to invest billions into stainless steel to cater for rapid expansion by suppliers.
The best analogy would be the 70 cow dairy man with a 10 unit parlour that’s paid for itself long ago compared to a new entrant gone into - greenfield site and after spending 300k on a parlour, servicing the loan repayment for the new parlour is going to be costing the new entrant north of 200 euro a cow yearly for the next 10 plus years, while the first guy will quiet easily get away with less then 30 euro a cow yearly to maintain his payed for parlour

wrangler

ozil10 wrote: »

Just curious to know what farm organisations(IFA.ICMSA etc)actually do with regard dealing with milk processors when they are setting milk prices.
Articles saying farm organisations urging milk processors to hold milk price when you could clearly see with the high volume of milk and uncertainty over brexit. They were going to cut the price.
What influence do these organisations actually have??
It's very little from what I can see

Every sector needs representation, the government are constantly being lobbied by interest groups and to put it simply ''if you're not in you cant win'' There's plenty of groups more deserving of extra funding than farmers.
Likewise with regulation and budget proposals the public service have to be marked before it's allowed to become legislation.
Unfortunately it's not like a shopping list that you just hand in stating your requirements.
Produce prices on the other hand is pretty much decided by the markets

alps

mahoney_j wrote: »

Don’t think he’ll be heading to close neighbour Arrabawn anyway !!!!

I wouldn't bet on it Mahoney....they have tried twice already...

I'm suspicious as Arrabawn have increased minimum shareholding requirement to 4c/l, and have introduced a revolving fund this year, albeit only for 3 years ( and repayment in shares to get you to the 4c)...

This brings farmer investment in the coop up to an equal footing with the Dairygold supplier, and both will now have contributed to a revolving fund..

There is very little duplication in product mix between the 2, only opportunities for routes to market.

I somehow expect to see this conversation opened again at some stage..

alps

Buford T. Justice V wrote: »

There's supposed to be a review of Co-op legislation later this year and bringing together all the regulations under one act so there probably is some lobbying going on about what the new rules:(

Farmer need to be really proactive in this process. Suppliers had cast iron entitlements under old coop rules, although the arbitration process was impossible for a farmer with a problem.

Farmers rights were undermined significantly by some of the MSA's, but the coop rulebook stood in the background as some sort of safety net.

I'd be really concerned that our farmer representation would allow leakage same...

Buford T. Justice XIX

alps wrote: »

Farmer need to be really proactive in this process. Suppliers had cast iron entitlements under old coop rules, although the arbitration process was impossible for a farmer with a problem.

Farmers rights were undermined significantly by some of the MSA's, but the coop rulebook stood in the background as some sort of safety net.

I'd be really concerned that our farmer representation would allow leakage same...

Farmers voluntarily allowed a lot of their rights to be taken when converting to PLCs and with some enthusiasm. MSAs, while not perfect, are of some benefit to suppliers to Kerry and Glanbia, not so much elsewhere, I think?

It would be interesting to see how the contradictions between the two sets of rights would be handled, though.

Mortelaro

https://twitter.com/johnnyohanlon/status/1116734921882705920?s=19

mahoney_j

alps wrote: »

I wouldn't bet on it Mahoney....they have tried twice already...

I'm suspicious as Arrabawn have increased minimum shareholding requirement to 4c/l, and have introduced a revolving fund this year, albeit only for 3 years ( and repayment in shares to get you to the 4c)...

This brings farmer investment in the coop up to an equal footing with the Dairygold supplier, and both will now have contributed to a revolving fund..

There is very little duplication in product mix between the 2, only opportunities for routes to market.

I somehow expect to see this conversation opened again at some stage..

Fully agree but there’s still a lot of bitterness on both sides on how last merger talks/attempt went .it should be parked tho and best interests of both sets suppliers looked at serious investment going on in nenagh atm ,big blue crane visible on all sides comming to nenagh constructing new casein plant and new entrance etc yet to be started we really don’t want to see markets in any way depressed for next few years because if they are price to supplier will be hammered as banks will have to be repaid ....

Buford T. Justice XIX

Kerry unchanged at 31c/l

mahoney_j

Buford T. Justice V wrote: »

Kerry unchanged at 31c/l

Any top ups or support in that Buford ??

Buford T. Justice XIX

mahoney_j wrote: »

Any top ups or support in that Buford ??

Nothing, j. Just the total price.

Dakota Dan

Dairygold are holding milk price for March, 31.19 includes 0.65 quality bonus.

Brown Podzol

Dakota Dan wrote: »

Dairygold are holding milk price for March, 31.19 includes 0.65 quality bonus.

Big swinging mickey. Lowest price in the country last month.

Buford T. Justice XIX

GDT up 0.5%

wats the craic

strathroy price this month is 31.59

Buford T. Justice XIX

Looks like a good base established on milk price in Europe.
https://twitter.com/DINtoday/status/1118807333591822336?s=19
And drought in NZ is leading to earlier than normal dry offs as well so there could be a bit of a bounce coming in commodity pricing.

Gawddawggonnit

Gawddawggonnit wrote: »

April 35cpl + vat @ 3.2p and 3.8bf.

May 36cpl + vat.

June 36cpl + vat.

If there’s a no deal Brexit...all bets are off!

Text this morning from the Coop.

April, from 15th, will be 36cpl + vat.

May 37cpl.

June 37cpl.

Open ticket, so this is minimum price and could go upwards again. Price increase is from the 15th because we get paid 3times a month...

Downside is heifers/cows now €1500-1800 to buy. I could do with another 50 but at those prices I’ll bide my time...

Timmaay

Gawddawggonnit wrote: »

Text this morning from the Coop.

April, from 15th, will be 36cpl + vat.

May 37cpl.

June 37cpl.

Open ticket, so this is minimum price and could go upwards again. Price increase is from the 15th because we get paid 3times a month...

Downside is heifers/cows now €1500-1800 to buy. I could do with another 50 but at those prices I’ll bide my time...

Did you sort out your labour issues? It was only 6months ago I think you said you were considering exiting or hugely cutting back on the dairy end? Very nice milk prices BTW.

mahoney_j

Arrabawn down another 0.75 cent on top of last months 0.75!and throw in revolving fund deduction of 0.5 cent on top .nothing short of a disgrace

whelan2

mahoney_j wrote: »

Arrabawn down another 0.75 cent on top of last months 0.75!and throw in revolving fund deduction of 0.5 cent on top .nothing short of a disgrace

So what's the base now?

mahoney_j

whelan2 wrote: »

So what's the base now?

30.71 ,0.5 cent revolving fund after that so in reality base is 30.21 cent

whelan2

mahoney_j wrote: »

30.71 ,0.5 cent revolving fund after that so in reality base is 30.21 cent

Still above Glanbia

awaywithyou

mahoney_j wrote: »

30.71 ,0.5 cent revolving fund after that so in reality base is 30.21 cent

Stainless Steel costs money..... sure look when all the building is paid for ye'll get paid a top price for ye're milk......

Mortelaro

awaywithyou wrote: »

Stainless Steel costs money..... sure look when all the building is paid for ye'll get paid a top price for ye're milk......

Shouldn't your CoOp be paying suppliers a return on that investment, afterall he who pays the piper etc
The CoOp is the chief beneficiary currently

Gawddawggonnit

Timmaay wrote: »

Did you sort out your labour issues? It was only 6months ago I think you said you were considering exiting or hugely cutting back on the dairy end? Very nice milk prices BTW.

Cut back numbers by nearly 40% last year due to labor issues.
Best team I’ve ever had now so I’ve been buying again since Xmas. Another 30 head and I’d be back to same level but just too expensive now.
Serious demand from the Maghreb is driving prices sky high...

Mooooo

Carbery held their price, so they are still at 33.5 incl vat if that's correct? And they supposedly with one of the biggest exposures to brexit with the cheese side.... the rest of us are being well fcuking rode anyway.

visatorro

Anyone know what co-op has the biggest share of New entrants?

jaymla627

visatorro wrote: »

Anyone know what co-op has the biggest share of New entrants?

Front page of journal and a comment on this trend back a few pages re rabobank would be your answer, was wondering how in the name of Jesus some of the new entrant and established lads going up in multiples of 100’s of cows where financing all the merry go rounds and air-craft hanger size cubicle sheds

Fixture

jaymla627 wrote: »

Front page of journal and a comment on this trend back a few pages re rabobank would be your answer, was wondering how in the name of Jesus some of the new entrant and established lads going up in multiples of 100’s of cows where financing all the merry go rounds and air-craft hanger size cubicle sheds

I think you’re wrong on that.
Raboank sold their ACC loan book. Most of that was built up before Milk quotas were abolished as ACC stopped lending in 2014. Most of the loans were probably given out back in the boom times.

Buford T. Justice XIX

visatorro wrote: »

Anyone know what co-op has the biggest share of New entrants?

Glanbia, as far as I know. Kerry have very few every year, maybe 20 or so.
Dairygold would have more than that, I think?