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Milk Price III

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Comments

  • Registered Users, Registered Users 2 Posts: 6,714 ✭✭✭jaymla627


    I'd say that interview Mr.Keane gave was the sorriest thing he ever done, he's surely has to resign our be removed at this stage, his true colours are nailed to the mast now and no glanbia supplier will stomach him going forward


  • Registered Users, Registered Users 2 Posts: 7,021 ✭✭✭kevthegaff


    jaymla627 wrote: »
    I'd say that interview Mr.Keane gave was the sorriest thing he ever done, he's surely has to resign our be removed at this stage, his true colours are nailed to the mast now and no glanbia supplier will stomach him going forward

    What did he say?


  • Registered Users, Registered Users 2 Posts: 21,640 ✭✭✭✭Water John


    West Cork added cheddar capacity before quota lift. They then switched production to the new plant and refurbished the existing capacity. They also added a second hand dryer and computerised it for little money, to simply deal with peak production weeks.
    No major borrowing, financed from cashflow.
    Now putting in Mozzarello plant. They used to make this years ago and ceased. New technology allows them to reintroduce it.

    A major number of farmers have approached WC to switch but they remain within their own area and focus on their present farmer/shareholders.
    There would be a bit of flexibility around new milk suppliers and where they are based.


  • Closed Accounts Posts: 4,431 ✭✭✭Mortelaro


    jaymla627 wrote: »
    I'd say that interview Mr.Keane gave was the sorriest thing he ever done, he's surely has to resign our be removed at this stage, his true colours are nailed to the mast now and no glanbia supplier will stomach him going forward

    Doubtless though his views are the same as the rest of the board and management


  • Registered Users Posts: 2,036 ✭✭✭awaywithyou


    kevthegaff wrote: »
    What did he say?


    This is the interview with Mr. Keane that has got him into trouble... the answer given to the last question asked is the major problem....

    https://www.dairyglobal.net/Milking/Articles/2019/11/Glanbia-Irelands-number-one-milk-processor-in-the-spotlight-497763E/


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  • Moderators, Society & Culture Moderators Posts: 3,230 Mod ✭✭✭✭K.G.


    Water John wrote: »
    West Cork added cheddar capacity before quota lift. They then switched production to the new plant and refurbished the existing capacity. They also added a second hand dryer and computerised it for little money, to simply deal with peak production weeks.
    No major borrowing, financed from cashflow.
    Now putting in Mozzarello plant. They used to make this years ago and ceased. New technology allows them to reintroduce it.

    A major number of farmers have approached WC to switch but they remain within their own area and focus on their present farmer/shareholders.
    There would be a bit of flexibility around new milk suppliers and where they are based.
    What do you mean by a little bit of flexibility. I always thought it was clear cut enough.


  • Closed Accounts Posts: 20,633 ✭✭✭✭Buford T. Justice XIX


    A blog from the IFA on the current milk price and why it's hugely below what processors can afford.

    https://www.ifa.ie/market_reports/dairy-market-blog-66/amp/?__twitter_impression=true


  • Registered Users, Registered Users 2 Posts: 307 ✭✭oxjkqg


    A blog from the IFA on the current milk price and why it's hugely below what processors can afford.

    https://www.ifa.ie/market_reports/dairy-market-blog-66/amp/?__twitter_impression=true


    A good bit of info there.
    2 things I think should happen;
    1. the IFA should formally ask all Irish coops for a written response ASAP as to why they are paying the price that they are, not call them out in some article on the Journal or Agriland etc, actually get a formal written response from them and get it published.
    2. It should be formally requested that all coops quote the price in a formal arrangement e.g. "Kerry coop has decided to pay 28.35 cent per litre plus vat". Make sure none of them are putting in the stunt line "based on standard constituents the average price will be 56.78 cent per litre for November". When they send out texts and make announcements etc.


  • Registered Users, Registered Users 2 Posts: 21,640 ✭✭✭✭Water John


    This discrepancy has long been there but has exacerbated recently.
    We have long had the differential between WC and the rest. Then some on here were claiming they had a mystery, money tree.
    The IFA, in the past have not called this out. Too many key players on the Dairy Committee are also committee people or even board members on processors.
    This was proved when, IFA national policy was for independent milk testing and these same people voted against it at milk processor meetings.
    We realise it much more clearly here in Mid Cork, where neighbours are getting €12-15K more each year than others.


  • Closed Accounts Posts: 20,633 ✭✭✭✭Buford T. Justice XIX




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  • Registered Users, Registered Users 2 Posts: 3,339 ✭✭✭Gawddawggonnit



    11.9cpl net margin for 2020 Chief, there’s money to be made!!
    Bel came out with a minimum base price (+vat) of 37cpl for the whole of 2020 yesterday.

    They came out with a base price last year of 35cpl for 2019, and they’ve easily beaten that...
    It’s nice to have one farm enterprise that will turn a profit for 2020.


  • Registered Users, Registered Users 2 Posts: 29,722 ✭✭✭✭whelan2


    Local fmp meeting tomorrow night. Not very often we have one. Will fill ye in after.


  • Registered Users, Registered Users 2 Posts: 2,981 ✭✭✭yosemitesam1



    What's left to be covered out of net margin? Land +labour and depreciation?


  • Registered Users, Registered Users 2 Posts: 8,611 ✭✭✭Mooooo



    Any debt included in those costs no, seeing as we are paying multiples of European interest rates as well? Amazing how they think some of those costs are going down with carbon taxes on the rise, contractors going to absorp fuel costs? Or are they saying costs going down only due to litres going up?


  • Registered Users, Registered Users 2 Posts: 6,714 ✭✭✭jaymla627


    Mooooo wrote: »
    Any debt included in those costs no, seeing as we are paying multiples of European interest rates as well? Amazing how they think some of those costs are going down with carbon taxes on the rise, contractors going to absorp fuel costs? Or are they saying costs going down only due to litres going up?

    The have a 6% increase in production per farm factored in for 2020 at the same input levels as 19, you can make any report look great once your able to decide to put in whatever data you feel like to suit your desired outcome


  • Registered Users, Registered Users 2 Posts: 11,305 ✭✭✭✭mahoney_j


    jaymla627 wrote: »
    The have a 6% increase in production per farm factored in for 2020 at the same input levels as 19, you can make any report look great once your able to decide to put in whatever data you feel like to suit your desired outcome

    So very true


  • Registered Users, Registered Users 2 Posts: 3,339 ✭✭✭Gawddawggonnit


    jaymla627 wrote: »
    The have a 6% increase in production per farm factored in for 2020 at the same input levels as 19, you can make any report look great once your able to decide to put in whatever data you feel like to suit your desired outcome

    WTF are Teagasc at?
    A 6% increase at the same input level?


  • Registered Users, Registered Users 2 Posts: 5,061 ✭✭✭alps


    And 4% reduction in milk price....my whole..

    We're down 9.2%


    And they predict holding price next year...


    When world prices are booming


  • Registered Users, Registered Users 2 Posts: 7,021 ✭✭✭kevthegaff


    alps wrote: »
    And 4% reduction in milk price....my whole..

    We're down 9.2%


    And they predict holding price next year...


    When world prices are booming
    It feels like wer just lesser than pawns in a game of chess


  • Registered Users, Registered Users 2 Posts: 3,339 ✭✭✭Gawddawggonnit


    alps wrote: »
    And 4% reduction in milk price....my whole..

    We're down 9.2%


    And they predict holding price next year...


    When world prices are booming

    Why would Teagasc come out with projections that border on propaganda?
    Who does it serve?


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  • Registered Users, Registered Users 2 Posts: 1,427 ✭✭✭Wildsurfer


    Dairygold are budgeting for an average base price of 31.5 cent for next year. Bringing in a winter bonus of 3cent for Jan, 2c for Feb and 1c for March(Scorecard must stay above 40 points to qualify).


  • Closed Accounts Posts: 4,431 ✭✭✭Mortelaro


    Why would Teagasc come out with projections that border on propaganda?
    Who does it serve?

    It's not deliberate
    Ever been on a board? If there are no changes/fresh blood with influence, then the record gets stuck and closed group think sets in with one direction prevalent

    CoOp's are rife with this
    Teagasc is the same


  • Registered Users, Registered Users 2 Posts: 29,722 ✭✭✭✭whelan2


    Just back from fmp meeting. A decision is going to be made hopefully before christmas where the funding is going to come from for expansion milk. Time to get onto your local glanbia board member and air your views.


  • Registered Users, Registered Users 2 Posts: 6,714 ✭✭✭jaymla627


    whelan2 wrote: »
    Just back from fmp meeting. A decision is going to be made hopefully before christmas where the funding is going to come from for expansion milk. Time to get onto your local glanbia board member and air your views.

    Is their even any concrete proposals thought up by the board yet our is it all just been made up as they go along, smoothing out the supply curve and getting away from the spring flush has to be a better option then spending another few hundred million on more dryers


  • Registered Users, Registered Users 2 Posts: 29,722 ✭✭✭✭whelan2


    No, they are having meetings at the moment to plan what to do. No concrete plans. 120 new entrants coming on stream atm. It needs to be sorted as lads have plans going forward. Also no idea what environment constraints will be coming down the line.We had a good meeting. Fairly vocal on the fact the glanbia are not very competitive in their trading division. Also alot of time spent discussing milk price and what is included in glanbias KPMG milk price in the table


  • Registered Users, Registered Users 2 Posts: 6,714 ✭✭✭jaymla627


    whelan2 wrote: »
    No, they are having meetings at the moment to plan what to do. No concrete plans. 120 new entrants coming on stream atm. It needs to be sorted as lads have plans going forward. Also no idea what environment constraints will be coming down the line.We had a good meeting. Fairly vocal on the fact the glanbia are not very competitive in their trading division. Also alot of time spent discussing milk price and what is included in glanbias KPMG milk price in the table

    120 new entrants say milking an average of 120 cows, on fag box calculations would need another 30 million spent on increasing capacity to cater at peak for milk, if no charge on new milk and passed back to all suppliers that's a 6k contribution each existing supplier is making .....
    Have they even any numbers like above put on what new milk coming in above processing capacity is going to cost in terms of milk price and debt taken on by co-op, their is a whole lot of talk but it seems to be very disjointed at board level and the whole Keane saga, could see something rushed in to please the lads shouting loudest at the minute that only suits certain suppliers agendas going forward


  • Registered Users, Registered Users 2 Posts: 7,021 ✭✭✭kevthegaff


    Talk of over 30 at Arrabawn; think I was the only one 12 years ago😱. Really should be discussed as it seems Europe/rest of the world isn’t paying us greatly these days for our milk


  • Registered Users, Registered Users 2 Posts: 29,722 ✭✭✭✭whelan2


    jaymla627 wrote: »
    120 new entrants say milking an average of 120 cows, on fag box calculations would need another 30 million spent on increasing capacity to cater at peak for milk, if no charge on new milk and passed back to all suppliers that's a 6k contribution each existing supplier is making .....
    Have they even any numbers like above put on what new milk coming in above processing capacity is going to cost in terms of milk price and debt taken on by co-op, their is a whole lot of talk but it seems to be very disjointed at board level and the whole Keane saga, could see something rushed in to please the lads shouting loudest at the minute that only suits certain suppliers agendas going forward

    €450 million was the sum needed that was quoted last night. Why should lads who didnt expand have to contribute to this? Young entrants must be looked after. Btw more people have exited milk production in glanbia since the abolition of quotas than joined. Now if I had of bern thinking I would have asked did they cease production or go elsewhere


  • Registered Users, Registered Users 2 Posts: 6,714 ✭✭✭jaymla627


    whelan2 wrote: »
    €450 million was the sum needed that was quoted last night. Why should lads who didnt expand have to contribute to this? Young entrants must be looked after. Btw more people have exited milk production in glanbia since the abolition of quotas than joined. Now if I had of bern thinking I would have asked did they cease production or go elsewhere

    Is another 450 needed going forward?
    Existing suppliers through a combination of a crap milk price and giving the 3.2% margin to g11 have already and still are paying a heavy price for new processing capacity put in the last few years, would be very hard to stomach having to contribute more if your supply isn't increasing in the future


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  • Registered Users, Registered Users 2 Posts: 8,611 ✭✭✭Mooooo


    Who paid for the expansion from 2015 so far? If all suppliers paid for expansion from existing and new to this point is it not a bit disingenuous to say the next phase shouldn't be paid by all?


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