Milk Price III

K.G.

lfc200 wrote: »

Is it the co-op management or Carbery management?
Whatever Carbery or their subsidiaries are doing it seems to be working for them at the moment!

More so carbery but neither will need the farm assist

K.G.

As i see it this is processing management trying to do two things. Trying leverage cash out of ornua to prop their own business try to curb carbery snd their policy of paying top prices for milk.it is really apain inthe ass for them.this talk of shares and dividends will disappear once the board structure has been changed and before you know we will be just like the beef men.you have simple decision glanbia /dairygold prices or west cork prices

Water John

Certainly only the CEO in each of the 4 West Cork Coops earns greater than €100K.
Carbery spending close on €100M on Mozzerella plant but they won't beggar the farmers for it.
See it as a cash raid on Ornua.

jaymla627

K.G. wrote: »

As i see it this is processing management trying to do two things. Trying leverage cash out of ornua to prop their own business try to curb carbery snd their policy of paying top prices for milk.it is really apain inthe ass for them.this talk of shares and dividends will disappear once the board structure has been changed and before you know we will be just like the beef men.you have simple decision glanbia /dairygold prices or west cork prices

Whatever route the glanbia board want to take i.e What Jim and Siobhan want to happen the complete opposite needs to happen, the invincibility that was afforded to them by rising share prices and a strong preforming plc is now blown to bits and the hoodwinking and b***king of the board on poor milk prices needs to be called out

whelan2

jaymla627 wrote: »

Whatever route the glanbia board want to take i.e What Jim and Siobhan want to happen the complete opposite needs to happen, the invincibility that was afforded to them by rising share prices and a strong preforming plc is now blown to bits and the hoodwinking and b***king of the board on poor milk prices needs to be called out

Jeez you've changed your tune from a few years ago

jaymla627

whelan2 wrote: »

Jeez you've changed your tune from a few years ago

Was never a glanbia fan boy, you can go back to the thread on the spin outs years ago and I was against it, and have always been vocal on the poor milk price...
Only thing they ever where good for was fixed milk schemes that are really paying of for us this year when the cookie jar money is added back in , but I suspect Oruna was the buyer behind all of these and with the soured relations the amount of milk that they will offer fixed going forward over 30 cent will be minuscule...
My theory on fixing as much milk as possible was always down to the fact glanbia if at all possible aided by the board will never pay a milk price costing the plc over 28/29 cent and I seem to be spot on

Buford T. Justice XIX

GDT down 2.6%. Drops across all price categories.

Mortelaro

whelan2 wrote: »

Normally a processor wouldnt publish a long praise article about being FIFTH in a Tightly bunched milk price league and if they lobbied to include items that most of their suppliers don't get and that doesn't include a significant competitor...... Unless they are feeling guilty.
5cpl behind non grass based mostly housed systems in the rest of the EU...... pathetic

Pravda in the post,today

The summary of the KPMG should read that Glanbia farmers have had better solids than most (a lot of that is farmers own work but it's also weather related)
Glanbia is taking it all as their own boards good work of course...

Lads ye are paying 28c for base price ,that's below most others and 9cpl below the French
Pull us another one

Buford T. Justice XIX

Mortelaro wrote: »

Pravda in the post,today

The summary of the KPMG should read that Glanbia farmers have had better solids than most (a lot of that is farmers own work but it's also weather related)
Glanbia is taking it all as their own boards good work of course...

Lads ye are paying 28c for base price ,that's below most others and 9cpl below the French
Pull us another one

Does that reported price include the co-op top up from shareholder funds as well?

Mortelaro

As far as I can make out it's not clear
Heres the heavily spun part of the article on glanbia connect

(The 28 odd cpl I refer to excludes vat because it's the government that pay that not Glanbia)
The spin in this is incredible
When did we ever get 60% of Glanbia Ireland's profits
Also all those schemes are subsidies in effect to the plc for to pay us less for milk and worse than that with our own share funds
Of course we all agreed in a vote to do this...

Lots of conflating milk price with share value below...

seasonality payments, winter milk payments, fixed milk price schemes, and the Glanbia trading bonus scheme – all of which have been approved by KPMG as validly relating to the supply of manufacturing milk by suppliers during the year.

Similarly, the Dutch LTO European milk league accepts all of the schemes for inclusion in its pricing.

In a difficult year for farmers, Glanbia milk supplier members received considerable other supports that are not included in the KPMG – including the €20m Extended Credit Scheme to allow farmers draw down interest-free cashflow and €50 per tonne feed price support in April.

In addition, Co-op dividends, which were worth €1,560 to the average milk supplier in 2018, are not included in the KPMG.

Glanbia chairman Martin Keane said: “The review clearly shows that Glanbia delivers a strong, competitive price for milk, with a similar ranking achieved over the past five consecutive years. In addition to a very competitive milk price, the Glanbia model delivers considerable value growth for member suppliers.

“We have worked hard to ensure that we lead the way in the agri-sector with an unrivalled range of volatility tools including MilkFlex Loans and FundEquip.”

KPMG Milk Price adjusted for constituents

The Glanbia price in the main KPMG table includes the benefit of constituents. When the net prices paid are adjusted to standardise for the level of solids in the milk delivered to each processor, Glanbia retained its relative position.

Glanbia Ireland Performance in 2018

In addition to paying a strong milk price in 2018, Glanbia Ireland (GI) achieved a Profit-After-Tax of €57.8 million. 60% of this profit is owned by farmers through Glanbia’s Co-Op’s majority ownership of GI. A dividend of €17.4m was paid by Glanbia Ireland to Glanbia Co-op. The value of shareholders’ funds on the GI balance sheet was €398m at the end of 2018, having risen by €25m during the year. Expanding Glanbia suppliers are not required to pay any capital contribution and there is no deferred payment element. In order to facilitate the growth ambitions of milk suppliers and generate added value, GI has invested €359m in milk processing assets since 2013. In 2018 Glanbia Ireland paid approximately €1 billion, including VAT, for milk directly to 4,500 farmer suppliers across rural Ireland.

Value Distribution

A key point in any comparison between Glanbia and other milk buyers is that, in addition to milk price, Glanbia member suppliers benefit from the value created by Glanbia plc, which is distributed through the Co-op.

Since 2013, Glanbia members have benefitted from significant value distribution.

For example, in 2018 Glanbia milk supplier Members received Co-op share interest of 39 cent per share (dividends) or €14.8m.

Buford T. Justice XIX

A little bit on what may happen in NI if we get a hard Brexit.
https://twitter.com/BBCNewsnight/status/1159219396713181185?s=19

Buford T. Justice XIX

Mortelaro, I particularly love the bit where farmers benefit from the PLC share rise. Perhaps when executives pay is up for review, they should be reminded of how much they have benefitted from house price rises.

whelan2

How if only 40% of farmers use the glanbia fixed price scheme (and alot of them are only allocated small amounts) is it included in the headline milk price. How is it even possible when everyone gets paid different??

mf240

Are they really going to add insult to injury by trying to convince us that they didn't pay a very poor price.

Reminded of father ted telling the Bishop that he didn't kick him up the hole

whelan2

mf240 wrote: »

Are they really going to add insult to injury by trying to convince us that they didn't pay a very poor price.

Reminded of father ted telling the Bishop that he didn't kick him up the hole

It just shows how stupid they must think we are

jaymla627

mf240 wrote: »

Are they really going to add insult to injury by trying to convince us that they didn't pay a very poor price.

Reminded of father ted telling the Bishop that he didn't kick him up the hole

Have milk fixed here outside of glanbia and it’s a 31.5 cent base including vat, from oct 17 to june 19 the base price including co-op supports is barely above it a third of a cent at the minute, but this will likely go the other way and I’ll be up once the year is out

Gman1987

Zeebsisgone654 wrote: »

Nothing will happen for upwards of 18 months, there will be ample time to tease out solutions but one thing is for certain the board and its current dysfunction cannot carry on

Its more than an Ornua board problem I think, Its an industry problem that will require management from each of the coops to work in the best long term interest of the industry. The current status of each of the coops completing against one another for the same business is dysfunctional with the only looser being the farmer.

farmertipp

Funny how it works. What the farmer gets is the only negotiable in all this..

Gawddawggonnit

farmertipp wrote: »

Funny how it works. What the farmer gets is the only negotiable in all this..

...and his time and assets fully invested.

dh1985

Gawddawggonnit wrote: »

...and his time and assets fully invested.

Whilst bearing 95% of the risk. From breeding to calving to feeding to weather,disease etc.
I suppose the fuse could blow on the fridge and the milk go sour

moneyheer

Heard price cut coming for July milk. Now that was second hand, was supposed to came from Glanbia board member, but not to be two bad. That depends on the definition of bad!

Water John

Well Talbot has to be paid even if the share price goes to junk.

whelan2

Water John wrote: »

Well Talbot has to be paid even if the share price goes to junk.

Sure aren't they great doing so well in the KPMG milk price league.

Buford T. Justice XIX

whelan2 wrote: »

Sure aren't they great doing so well in the KPMG milk price league.

Still doing better than Kerry's leading milk price by 1.5c iirc?

Mortelaro

Glanbia drop 1cpl to 29.5cpl inc vat base
0.5cpl makey uppy support plc making it 30cpl
So they are getting base milk for 28cpl,that's all they are paying...

whelan2

Mortelaro wrote: »

Glanbia drop 1cpl to 29.5cpl inc vat base
0.5cpl makey uppy support plc making it 30cpl
So they are getting base milk for 28cpl,that's all they are paying...

Is it not 29.5 including the makey up money.?

freedominacup

whelan2 wrote: »

Is it not 29.5 including the makey up money.?

Yes.

whelan2

freedominacup wrote: »

Yes.

Mortelaro must be on a better price than the rest of us

Timmaay

https://www.glanbiaconnect.com/news/glanbia-milk-price-for-july-2019

29.50. However they are bragging above that including solids on average its nearly 33c/l! Surely that's false advertising?

whelan2

Timmaay wrote: »

https://www.glanbiaconnect.com/news/glanbia-milk-price-for-july-2019

29.50. However they are bragging above that including solids on average its nearly 33c/l! Surely that's false advertising?

Same as the KPMG newsletter. As greengrass said praising themselves for our solids....