Milk Price III

Buford T. Justice XIX

Kerrys latest forward price is 32c/l. That's an increase of 3c/l since the last offer of 29c/l.

So it looks somewhat positive for milk prices next year.

There's definitely scope for a 1c increase this month but doubt we'll see much more than a half cent if any increase at all. Lakelands will be important in keeping or forcing the rest to raise.

Grueller

Buford T. Justice XIX wrote: »

Kerrys latest forward price is 32c/l. That's an increase of 3c/l since the last offer of 29c/l.

So it looks somewhat positive for milk prices next year.

There's definitely scope for a 1c increase this month but doubt we'll see much more than a half cent if any increase at all. Lakelands will be important in keeping or forcing the rest to raise.

That forward price is 2c ahead of glanbias latest fixed price scheme.

oxjkqg

Buford T. Justice XIX wrote: »

Kerrys latest forward price is 32c/l. That's an increase of 3c/l since the last offer of 29c/l.

So it looks somewhat positive for milk prices next year.

There's definitely scope for a 1c increase this month but doubt we'll see much more than a half cent if any increase at all. Lakelands will be important in keeping or forcing the rest to raise.

Far cry from fixed scheme no. 16 of 29 cent a litre

Buford T. Justice XIX

Lakelands rise 1c/l.

whelan2

Buford T. Justice XIX wrote: »

Lakelands rise 1c/l.

To 32cpl including vat

Buford T. Justice XIX

whelan2 wrote: »

To 32cpl including vat

I caught it in the Journal but they quote prices ex-vat so I have no idea what the current prices are:rolleyes:

whelan2

Glanbia staying with a base price of 30.18 cpl including vat. Then 0.42 cpl share of profits and 0.4cpl top up payment from the co op.very complicated. Still nearly 2 cent behind lakelands base price

Keepgrowing

GrasstoMilk wrote: »

John Murphy taking over from Martin Keane as chair of glanbia coop
Hopefully he can straighten the ship and get milk price and share price back on track

He’ll have no bearing on share price as that’s the plcs relm

roosterman71

whelan2 wrote: »

Glanbia staying with a base price of 30.18 cpl including vat. Then 0.42 cpl share of profits and 0.4cpl top up payment from the co op.very complicated. Still nearly 2 cent behind lakelands base price

Reading on Agriland, Glanbia saying they'll be paying on average 38.15c/L for September milk. Can someone explain, based on the numbers from whelan2 there, how they get to 38.15c/L?

kevthegaff

roosterman71 wrote: »

Reading on Agriland, Glanbia saying they'll be paying on average 38.15c/L for September milk. Can someone explain, based on the numbers from whelan2 there, how they get to 38.15c/L?

Their averaging what suppliers will be paid for solids, smokescreen basically

whelan2

kevthegaff wrote: »

Their averaging what suppliers will be paid for solids, smokescreen basically

The solids are the farmers- own work, not glanbias

RightTurnClyde

kevthegaff wrote: »

Their averaging what suppliers will be paid for solids, smokescreen basically

Now that would be a good start for John Mirphy. Stop them quoting the average price inc solids. Focus on the base price

roosterman71

kevthegaff wrote: »

Their averaging what suppliers will be paid for solids, smokescreen basically

whelan2 wrote: »

The solids are the farmers- own work, not glanbias

Is the price achievable?

Sorry for the questions, I'm not a dairy person. Just trying to figure out how in the name of jaysus they say the price is x, plus a "bonus" of y and z, but are actually paying way more than that according to their own statement. I see Kerry have said something similar now too

oxjkqg

Kerry at 31 cent, jesus christ some insult!

Buford T. Justice XIX

roosterman71 wrote: »

Is the price achievable?

Sorry for the questions, I'm not a dairy person. Just trying to figure out how in the name of jaysus they say the price is x, plus a "bonus" of y and z, but are actually paying way more than that according to their own statement. I see Kerry have said something similar now too

The price is achievable, it's being received and exceeded by half the suppliers.

But it's a slant used to make the price being paid look much better than it actually is. Kerrys base price is still unchanged from last month at 31c/l though the price received by farmers has risen due to the effects of cows starting to dry off and volumes decreasing while solids increase. And it will look better again next month as the same process of lower volumes and higher solids leads to a higher price per litre while the base price still stays unchanged.

Acquiescence

oxjkqg wrote: »

Kerry at 31 cent, jesus christ some insult!

A cynical person might suggest it was to incentivise uptake of the most recent forward pricing offer.

whelan2

roosterman71 wrote: »

Reading on Agriland, Glanbia saying they'll be paying on average 38.15c/L for September milk. Can someone explain, based on the numbers from whelan2 there, how they get to 38.15c/L?

With an average price like that there will be many over 40cpl but will also be those under 30cpl.

Wildsurfer

roosterman71 wrote: »

Is the price achievable?

Sorry for the questions, I'm not a dairy person. Just trying to figure out how in the name of jaysus they say the price is x, plus a "bonus" of y and z, but are actually paying way more than that according to their own statement. I see Kerry have said something similar now too

The base price is the price given for milk at a specified butterfat and protein content. But with good management most suppliers will exceed this 'base' level and will be paid extra for their higher percentage fat/protein content. This fat/protein content is usually referred to as the solids content of milk.

roosterman71

Thanks all for helping me understand. One last one (I think). For the solids, is it a set price per fix amount over and above the base constituents?

And another!
What difference does it make? If farmer A has super milk with great fat/protein, and the lad next door is a shady operator with poor numbers, when it all goes into the truck and to the processor, what difference does the hard work of farmer A mean to the processor apart from a higher pay out /l. Isn't that quality milk diluted with the rubbish stuff?

Timmaay

Wildsurfer wrote: »

The base price is the price given for milk at a specified butterfat and protein content. But with good management most suppliers will exceed this 'base' level and will be paid extra for their higher percentage fat/protein content. This fat/protein content is usually referred to as the solids content of milk.

Quoting milk price in c/l in Ireland is complete smoke and mirrors. We are paid a flat rate per kg of solids, end of story. The farmer wants to maximise the kgs of ms (within a reasonable cost), if he achieves 28c/l or 50c/l its almost irrelevant (aside from the water deduction).

Buford T. Justice XIX

roosterman71 wrote: »

Thanks all for helping me understand. One last one (I think). For the solids, is it a set price per fix amount over and above the base constituents?

And another!
What difference does it make? If farmer A has super milk with great fat/protein, and the lad next door is a shady operator with poor numbers, when it all goes into the truck and to the processor, what difference does the hard work of farmer A mean to the processor apart from a higher pay out /l. Isn't that quality milk diluted with the rubbish stuff?

We're paid on kgs of fat and protein produced in the milk as this is what is sold and there's a small charge for the volume of water, for want of a better word, that the solids are contained in in the milk.

So two farmers can send the exact same kgs of fat and protein to be processed but get two different prices as one would have lower solid % in their milk so get charged more to pay for the cost of evaporating the water off while the other would have a higher price as he would be deducted less to pay for the lower volume of water to be evaporated in his milk.

Same kgs of solids but 2 different prices to reflect the extra cost of disposing of the water.

Every collection is sampled to measure the fat and protein %s and also the cellcount and lactose and tested for the lack of antibiotics and two or three times a month to check the total bacteria count.

So every time you're collected, there's a record of everything there that reduces quality and you get deductions for each of those. Except antibiotics, any trace of those in the milk and you get charged for the entire cost of the entire tank of milk.

Farm365

Timmaay wrote: »

Quoting milk price in c/l in Ireland is complete smoke and mirrors. We are paid a flat rate per kg of solids, end of story. The farmer wants to maximise the kgs of ms (within a reasonable cost), if he achieves 28c/l or 50c/l its almost irrelevant (aside from the water deduction).

Why isn’t the price quoted in kgs of solids? How do you work in the price per kg?

alps

Farm365 wrote: »

Why isn’t the price quoted in kgs of solids? How do you work in the price per kg?

The price is quoted in €/kg of Protein plus €/kg Fat and minus the amount they'll charge per litre delivered.

Each processor pays a different amount cor each of the values above, and as each farmer has a different Fat to protein profile and ratio, there is no such thing as a price for the combined kg of milk solids.

IFJ have standardised their KG of milk solids for the creation of the Milk league attached, which ranks processors in price/kg of this standardised kg MS..

farmerrichie

Looking forward to milk price increase from dairygold. 2c a litre wouldn't be out of the way, just to catch up with the other co ops milk prices��.

whelan2

What's the story with arrabawn milk being recalled from a good few supermarkets?

Buford T. Justice XIX

whelan2 wrote: »

What's the story with arrabawn milk being recalled from a good few supermarkets?

https://twitter.com/franmcnulty/status/1316776070998302722?s=19

kevthegaff

What causes the bacteria?

Buford T. Justice XIX

kevthegaff wrote: »

What causes the bacteria?

The FSAI said the test for Enterobacteriaceae is used as an indicator of poor hygiene, process failure and/or post-processing contamination of heat processed foods.

Seems to be a hygiene/washing problem in the plant.

degetme

Buford T. Justice XIX wrote: »

Kerrys latest forward price is 32c/l. That's an increase of 3c/l since the last offer of 29c/l.

So it looks somewhat positive for milk prices next year.

There's definitely scope for a 1c increase this month but doubt we'll see much more than a half cent if any increase at all. Lakelands will be important in keeping or forcing the rest to raise.

Are you going to sign up

Buford T. Justice XIX

degetme wrote: »

Are you going to sign up

No, I locked in a good bit a while back so I'm as covered as I want to be tight now.

What I gained in fixing, I lost much more on the money due on leading milk price compensation.