Milk Price III

whelan2

Mooooo wrote: »

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?

The litre of milk paid for expansion to date.

whelan2

jaymla627 wrote: »

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

Yes 450 needed. New projects are coming on stream. The talk of how wonderful glanbia are in the KPMG league is very annoying. Thst price includes our own constituents and our own co op top up. Fixed price and trading bonus that not many avail of

jaymla627

whelan2 wrote: »

Yes 450 needed. New projects are coming on stream. The tskk of how wonderful glanbia are in the KPMG league is very annoying. Thst price includes our own constituents and our own co op top up. Fixed price and trading bonus that not many avail of

So another 90 grand a supplier is going out the door on processing, reading between the lines any fixed price scheme over 30 cent I'd be taking, glanbia is going to turn itself into fonterra the way its heading

whelan2

jaymla627 wrote: »

So another 90 grand a supplier is going out the door on processing, reading between the lines any fixed price scheme over 30 cent I'd be taking, glanbia is going to turn itself into fonterra the way its heading

Oh ye a fixed price scheme of 35cpl is coming out after the applications close for this current one. Not sure of the terms and conditions for liquid suppliers

mahoney_j

Mooooo wrote: »

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?

A b quota is going to come in with a reference year set those that want to expand further or new entrants wanting to join should pay at an accelerated rate to fund any more as or driers in Arrabawn atm we are paying into a revolving fund and we have to have 4K shares per 100 k supplied .deduction of 0.5 cent per liter deducted till u reach that .

mahoney_j

whelan2 wrote: »

Yes 450 needed. New projects are coming on stream. The talk of how wonderful glanbia are in the KPMG league is very annoying. Thst price includes our own constituents and our own co op top up. Fixed price and trading bonus that not many avail of

Simple way to solve that a representation should be made to kpmg to ensure when there quoting milk prices for coops that it is base price at standard solids excluding vat and not including any top ups ,scc bonuses etc

whelan2

The problem with existing revolving funds is they need to go again. Iykwim. The ones that are going a few years will need to be paid back and new ones started up. Also remember the co op must collect milk from a co op shareholder.

whelan2

mahoney_j wrote: »

Simple way to solve that a representation should be made to kpmg to ensure when there quoting milk prices for coops that it is base price at standard solids exclusive of any top ups ,scc bonuses etc

Couldn't agree more. I pointed out last night how we are consistently bottom of every milk price table monthly and then a big fanfare when we sre 2nd or 3rd in the KPMG league. Using our own solids and co op top ups etc.

Panch18

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

To answer your last question - they ceased production. There has been a large decline in the number of dairy farmers throughout the country - so less farmers milking more cows

whelan2

Another farmer pointed out that farmers are better off financially not dealing with glanbia agri.

straight

whelan2 wrote: »

Couldn't agree more. I pointed out last night how we are consistently bottom of every milk price table monthly and then a big fanfare when we sre 2nd or 3rd in the KPMG league. Using our own solids and co op top ups etc.

That's the **** they pulled on the beef lads too. Base price is the only price that should ever be quoted. Everything else extra is hard earned

Mortelaro

whelan2 wrote: »

€450 million

Are they buying the steel at the glanbia store?

Mooooo

mahoney_j wrote: »

A b quota is going to come in with a reference year set those that want to expand further or new entrants wanting to join should pay at an accelerated rate to fund any more as or driers in Arrabawn atm we are paying into a revolving fund and we have to have 4K shares per 100 k supplied .deduction of 0.5 cent per liter deducted till u reach that .

Dairygold are the same, revolving fund coming to an end soon. Share up has been there since 15. If extra milk requires a share up that's straight forward enough. Extra milk has been played by all suppliers to now, that should change because some have decided to finish expanding? I dunno. Got fcuked with tb here, won't be close to my planned 2016 numbers till next year and with a much younger herd also. Have plenty shares but if I was to be charged over going above any year in the last 3 I'll be spitting blue murder tbh

mahoney_j

Mooooo wrote: »

Dairygold are the same, revolving fund coming to an end soon. Share up has been there since 15. If extra milk requires a share up that's straight forward enough. Extra milk has been played by all suppliers to now, that should change because some have decided to finish expanding? I dunno. Got fcuked with tb here, won't be close to my planned 2016 numbers till next year and with a much younger herd also. Have plenty shares but if I was to be charged over going above any year in the last 3 I'll be spitting blue murder tbh

For situations like that I’m sure there would be force Majoure

jaymla627

Mortelaro wrote: »

Are they buying the steel at the glanbia store?

The two new cheese plants must be going to solely funded by the clowns actually producing the milk, I thought they where going to be joint ventures with Royal Aware, the co-op is now going to owe more then its assets now going forward with the collapse of the plc shares, the whole lot will end in tears

whelan2

jaymla627 wrote: »

The two new cheese plants must be going to solely funded by the clowns actually producing the milk, I thought they where going to be joint ventures with Royal Aware, the co-op is now going to owe more then its assets now going forward with the collapse of the plc shares, the whole lot will end in tears

Someone mentioned whey protein and glanbia share price. They were shot down very quickly

GrasstoMilk

whelan2 wrote: »

Couldn't agree more. I pointed out last night how we are consistently bottom of every milk price table monthly and then a big fanfare when we sre 2nd or 3rd in the KPMG league. Using our own solids and co op top ups etc.

Were the guys on fmp board of same opinion as you with regards to the KPMG league?
It's the pits, trying to cover up being the worst paying coop by using the farmers price after constituents is added

jaymla627

whelan2 wrote: »

Someone mentioned whey protein and glanbia share price. They were shot down very quickly

That wouldn't be surprising, I wonder are they adopting the same strategy with non-farmer shareholders, if their is another bad quarter at the start of 20 on the performance nutrition side you'll see investment funds washing their hands of Glanbia stock the pay rises to Talbot and co earlier this year are farcical given the poor performance of the plc and they'll probably give themselves more pay increases in 2021 when it's up for renewal again, you could see investors start to short plc shares soon enough

Mortelaro

whelan2 wrote: »

Someone mentioned whey protein and glanbia share price. They were shot down very quickly

That shouldn't be happening
It's not the glanbia executives producers meeting
Its FMP Fresh milk producers

whelan2

GrasstoMilk wrote: »

Were the guys on fmp board of same opinion as you with regards to the KPMG league?
It's the pits, trying to cover up being the worst paying coop by using the farmers price after constituents is added

No, sorry read your post wrong. Fmp lads not impressed either. They have very little say in the manufacturing price

Buford T. Justice XIX

whelan2 wrote: »

The problem with existing revolving funds is they need to go again. Iykwim. The ones that are going a few years will need to be paid back and new ones started up. Also remember the co op must collect milk from a co op shareholder.

Collect milk or collect all milk offered?

The devil is in the detail.

Reading elsewhere yesterday about Dairygold, the estimated costs of extra processing for peak milk is 12m for every 1m litres.

That's an investment cost of 12 euro/litre.

whelan2

Buford T. Justice VI wrote: »

Collect milk or collect all milk offered?

The devil is in the detail.

Reading elsewhere yesterday about Dairygold, the estimated costs of extra processing for peak milk is 12m for every 1m litres.

That's an investment cost of 12 euro/litre.

Collect the milk, no mention of paying for it

whelan2

I better get off this . Work to be done.

Buford T. Justice XIX

whelan2 wrote: »

Collect the milk, no mention of paying for it

I have a lad just arrived to hang the last gates in the new shed.

No rest for the wicked:)

alps

Mooooo wrote: »

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?

Not all have had the land access to expand to date. It would be really unfair if these farmers, having paid heavily for the current expansion, would now be caught to be the sole contributors for their own.

Water John

A Coop is not obliged to take all milk from suppliers no matter what output they achieve. If capital expenditure for the extra milk makes no financial sense for the coop then its correct decision is to put a cap on the supply.
Its first commitment is to its own financial stability.
It certainly isn't obliged to take on, new suppliers.

alps

Water John wrote: »

A Coop is not obliged to take all milk from suppliers no matter what output they achieve. If capital expenditure for the extra milk makes no financial sense for the coop then its correct decision is to put a cap on the supply.
Its first commitment is to its own financial stability.

Coop rules state that it must collect all of the milk from all of the cows grazed by that supplier in the coops area, and pay the price for such milk.

Suppliers may have waived this if MSA's say different..

whelan2

The lads mentioned rule 100 on collecting co op milk

alps

whelan2 wrote: »

The lads mentioned rule 100 on collecting co op milk

What does rule 100 say?

whelan2

alps wrote: »

What does rule 100 say?

I'm not sure. Something about collecting your milk no mention of paying for it. Someone else might clarify