Milk Price III

whelan2

The glanbia vat statement is up on line. Why is the bio diversity payment that they paid us a few weeks ago deducted off our account on the statement. Are we funding it to ourselves ?

Mooooo

Dairygold up 0.5c to 28.5.....yah

Water John

So Dairygold is up to 28.5 Possible bonus .55
Neighbours then supplying Carbery are on 31.4 Possible bonus .65


3 cent a litre. 100 cow herd €16.500 diff.
Still the same story.

Mooooo

0.65 is dairygold bonus if milk recording and herd testing. Added post solids adjustment which is why I quote the actual base price in my posts

Mortelaro

whelan2 wrote: »

The glanbia vat statement is up on line. Why is the bio diversity payment that they paid us a few weeks ago deducted off our account on the statement. Are we funding it to ourselves ?

I see that
Strange

lab man

Water John wrote: »

So Dairygold is up to 28.5 Possible bonus .55
Neighbours then supplying Carbery are on 31.4 Possible bonus .65


3 cent a litre. 100 cow herd €16.500 diff.
Still the same story.

In a year ?

mahoney_j

Arrabawn held just over 29 vat inc

Mortelaro

lab man wrote: »

In a year ?

3c on 500000 is €15000 in a year

kevthegaff

Mortelaro wrote: »

3c on 500000 is €15000 in a year

That could be difference in a 30k profit or 15 which is huge when milk price is hovering around the late 20s.

whelan2

What are strathroy paying for May milk

whelan2

whelan2 wrote: »

What are strathroy paying for May milk

No change, 29 cpl incl. Vat

K.G.

Deleted User wrote: »

No change, 29 cpl incl. Vat

A base price of 29 isnt a lot different to 3 50 a kilo in the beef trade is it.time to man the blockades 😁

Wildsurfer

K.G. wrote: »

A base price of 29 isnt a lot different to 3 50 a kilo in the beef trade is it.time to man the blockades ðŸ˜

After a world wide pandemic it's acceptable enough. I got 33c/ litre for May milk, if you had said 2 months ago I would be getting that I would have been very happy to take it!

Mooooo

Wildsurfer wrote: »

After a world wide pandemic it's acceptable enough. I got 33c/ litre for May milk, if you had said 2 months ago I would be getting that I would have been very happy to take it!

Yet near every other processor in the Europe and NZ is paying more...

whelan2

Am expecting a milk price increase next month

Water John

Mooooo wrote: »

Yet near every other processor in the Europe and NZ is paying more...

And West Cork.

mahoney_j

whelan2 wrote: »

Am expecting a milk price increase next month

Atm most definetly yes .markets justifying it 29.5 to 30 base plus should be in cards for every coop

richie123

K.G. wrote: »

A base price of 29 isnt a lot different to 3 50 a kilo in the beef trade is it.time to man the blockades ðŸ˜

20 cent a litre for milk is closer to 3.50 in beef more like it I would say.

straight

richie123 wrote: »

20 cent a litre for milk is closer to 3.50 in beef more like it I would say.

Alot more costs and labour in dairy. Beef is only 39 hour a week job.

richie123

straight wrote: »

Alot more costs and labour in dairy. Beef is only 39 hour a week job.

I never mentioned anything about labour.i agree labour is more intensive on dairy units

straight

richie123 wrote: »

I never mentioned anything about labour.i agree labour is more intensive on dairy units

Well labour is a cost. Unless you're a slave of course.

K.G.

richie123 wrote: »

20 cent a litre for milk is closer to 3.50 in beef more like it I would say.

I wouldn't think so .anyway i m only saying that its tight well at the moment in milk

alps

K.G. wrote: »

I wouldn't think so .anyway i m only saying that its tight well at the moment in milk

Extremely...

kevthegaff

Maybe it's not the cash cow the media present

straight

kevthegaff wrote: »

Maybe it's not the cash cow the media present

Alot of dairy setups now are more like white elephants

jaymla627

kevthegaff wrote: »

Maybe it's not the cash cow the media present

Well established herds that havent took on to much debt and would be making improvements out of cashflow down through the years for the most part would still be making tidy profit....
The margins become non-exsistent in cases where herds are been doubled to tripled, in a few short years and sizeable term loans been taken out to fund it, between paying back the bank and the cost of rearing/buying a huge number of replacements to ramp up numbers, you could be looking at the guts of 10 cent a litre yearly been swallowed up on the above, while your first example of a established lad happy with his lot would only be at 2-3 cent a litre in comparsion....
The easy access to credit through the likes of milkflex and tams have lead to massive investment on-farm the thing is it all has to be paid back and any hicups like milk price under 30 cent a litre our weather related issues cant be easily absorbed as the cash buffer dosent exist to ride it out anymore

straight

jaymla627 wrote: »

Well established herds that havent took on to much debt and would be making improvements out of cashflow down through the years for the most part would still be making tidy profit....
The margins become non-exsistent in cases where herds are been doubled to tripled, in a few short years and sizeable term loans been taken out to fund it, between paying back the bank and the cost of rearing/buying a huge number of replacements to ramp up numbers, you could be looking at the guts of 10 cent a litre yearly been swallowed up on the above, while your first example of a established lad happy with his lot would only be at 2-3 cent a litre in comparsion....
The easy access to credit through the likes of milkflex and tams have lead to massive investment on-farm the thing is it all has to be paid back and any hicups like milk price under 30 cent a litre our weather related issues cant be easily absorbed as the cash buffer dosent exist to ride it out anymore

If they were to pay themselves minimum wage for every hour worked, reinvest the minimum back into the business throughout the year and pay themselves 100 euro an acre rent for the land that they own how much profit would they have?

Mortelaro

straight wrote: »

If they were to pay themselves minimum wage for every hour worked, reinvest the minimum back into the business throughout the year and pay themselves 100 euro an acre rent for the land that they own how much profit LOSS would they have?

Fixed your post there

cosatron

whats a minimum wage, the money left over in the milk cheque when everyone is paid?

Grueller

straight wrote: »

If they were to pay themselves minimum wage for every hour worked, reinvest the minimum back into the business throughout the year and pay themselves 100 euro an acre rent for the land that they own how much profit would they have?

I am not disagreeing with the above post at all. Any type of farming, or business for that matter is tight margins.
However, a couple of points.
What is the minimum reinvestment. I have one neighbour that believes it means keeping the tractor under 5 years old, fresh jeep, all bells and whistles on the parlour etc. Another neighbour thinks it means a new brush handle to prop the roof of the cab of his ford 5000.
Another thing is the hours worked thing. My wife will come home this evening believing that I was busy all day, but the reality is that the kids got two hoverboard for their birthdays and the three of us have spent an hour racing on them, another half an hour hurling and another 45 minutes training a new sheep pup to sit and heel. When I am in the off farm job I would have condensed what it has taken six hours this morning to do into 3. Now next week I will be at silage again, weather permitting so and 80 hour week beckons, so maybe scratch that point.