Milk Price III

whelan2

Was thinking it should read 0.5cpl ...with the seasonality bonus gone now they had to do something major

roosterman71

Is it a 2.5c rise? The bonus goes to 1c from 3.5c and the base is up 5c. Difference then of 2.5?

Of course that won't make the headlines. All ya'll see is 5c increase splashed across the media

whelan2

Another text from glanbia starting in July we will be paid twice a month, 9th and 25th. Bit of a balls when all standing orders received set up for around 20th.

whelan2

https://www.boards.ie/discussion/comment/118916089#Comment_118916089

The base for February was 41.68cpl inc vat . Then they had a seasonality bonus onto that. This month there is no seasonality bonus, base price is up 5cpl to 46.58 cpl in vat. Then 0.5cpl sustainability bonus brings the march price to 47.08cpl

roosterman71

Yeah the base is up and that will be the headline figure. But the actual rise is not 5c, but less due to the bonus being cut

Mooooo

https://www.boards.ie/discussion/comment/118917767#Comment_118917767

Could be a prerequisite to them looking for earlier payment for inputs

whelan2

Not all farmers got the seasonality bonus though. They had to do something big this month to put themselves up in line with other processors They had masked the price for the last few months

mf240

https://www.boards.ie/discussion/comment/118917827#Comment_118917827

Base is up 5 , the bonus was a feburary bonus. Paid in feburary , for feburary milk in februrary.

Pinsnbushings

In fairness whatever way its made up its a good price for milk, and badly needed.. everything we buy keeps going up too though...local concrete supplier sent me an email today, prices jumping another 10 percent on the 1st of May.

Fair play to anybody that went for it when quotas went they are laughing now with this inflation eating up there debt.

People like my parents with most there savings in cash now at there age are being crucified.

straight

Kerry will be under pressure to top that with their leading milk price contract...

atlantic mist

bloody fixed price schemes!!!!

great price all the same would love to be getting it

jaymla627

https://www.boards.ie/discussion/comment/118917767#Comment_118917767

Thought that myself, Its messy the way its been implemented, 50% on the 9th needs to be 80% and the balancing payment on the 25th 20%

jaymla627

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Nice bit of fu**kwittery here, their record record high fixed milk price scheme has a get out of jail free card for the customer, I know members of the travel community that I'd trust to honor a deal then this shower

atlantic mist

https://www.boards.ie/discussion/comment/118937331#Comment_118937331

record fixed price scheme is a poor offering considering the current enviroment....then again we do have GI staff who hold plc shares in negioations with the plc about fixing the price of products plus the plc has all the suppliers financial information as they are our third party accountants.... as suppliers were at nothing, which im now learning the hard way

what beats me is they have us signed up for a extended fixed price milk contract for three years and they wouldnt even let us fix our meal till xmas, some shower....had to go into new fixed price scheme as wouldnt make it to end of year otherwise, over a barrel

they have another beauty in the small print if you threaten to leave they can cancel contract and come after you for costs.....

greenans released all glanbia suppliers from all fixed price contracts .....fair play for a small company ill must look into moving meal and fert to them

mahoney_j

https://www.boards.ie/discussion/comment/118938295#Comment_118938295

Lads those of ye whinging about Glanbia fixed schemes should cop on a bit imo ….the new scheme and what they’ve done for affected suppliers should be applauded …38 cent plus solids plus bonuses replacing 32 where suppliers would of lost there shirt ….there was no obligation on them to do anything ..other coops my own included havnt offered anything close …index linking inputs to inflation also good move ….also a cash payout

Grueller

https://www.boards.ie/discussion/comment/118938343#Comment_118938343

Have to agree and that's as someone with fixed milk (on bank direction while borrowing for start up costs)

Green&Red

https://www.boards.ie/discussion/comment/118937331#Comment_118937331

Would you keep your racism to yourself

blue5000

https://www.boards.ie/discussion/comment/118938659#Comment_118938659

Mod note We'll do the moderating around here, thanks.

atlantic mist

https://www.boards.ie/discussion/comment/118938343#Comment_118938343

heart of gold there

just maybe to put a few figures on it, under 22% of my total contract has been renegioated, at a price increase of 6cl, for this ill be giving twice the volume back to the customer at a price the customer set themselves, the 6c on this year volumes is a nice break considering all our main inputs have increased from 50-300%, were not in a good position with balance of contract (78%), the adjustment is a help its certainly not a game changer, well have to manage costs like a year at 20cl

the majority didnt take the scheme , only a small few did

to be fair GI only asked customer to see what the customer would be willing to do, customer came back with the offer, no skin off GI back either way. i thought they could have done something on meal considering there forward buying domestically and currently selling last years harvest, with the exception of the soya and maize and the loyalty schemes ive entered asked us to buy our inputs from glanbia so not out of the question to look for something on inputs as they are a one stop shop

why hasnt your coop done anything? ever other part of society is regegioating contracts in light of the current climate it certainly not out of the ordinary,

MJ i think you mixing up schemes the index linked inputs (linked to paris and us futures instead of glanbia actual price of inputs) is the latest fixed price scheme at 42c goes to 40c next yr and yr after, which wouldnt really apply to anyone caught with large volumes in original schemes, they will have everything fixed all ready, considering the base the new coop paid last month its not a great contract in my view...i cant enter it, milk will more than likely avg 47c this year, whats a cash payout???

mahoney_j

https://www.boards.ie/discussion/comment/118940322#Comment_118940322

I’ve read the proposal on Glanbia connect ….and honestly think it’s v fair what there doing ..they didn’t have to do anything …..yes we are in unchartered territory with what has happend on last 2 months and it has left some v exposed and if they were left some may of gone under ….I’ve no wish to see any supplier go out of business but fixed schemes were entered freely …..if roles were reversed and a supplier was 10/15 cent the good side of fixed price would you be as generous to Glanbia ……The payement I’m referring to is the Farm input cost support payement payable in April /may this year

understand this is tough stations for anyone in fixed schemes but from what I’ve seen Glanbia are been pretty fair and reasonable

straight

I do sympathize with guys caught up in fixed price schemes but they were entered into freely. If it was the other way around you would hear lads boasting that they have a fixed price scheme. It's like when interest rates go up lads tell you that they have a fixed rate mortgage. Then rates drop and they go very quiet. I got burnt with investments in the dot com crash and I bought a house in 2006 and it fell to half of it's value. Nobody cared, hard times but that's life. Still though, co-op and all that. I'd like to see guys helped out.

mahoney_j

https://www.boards.ie/discussion/comment/118940764#Comment_118940764

Snap same here ….there is a co hort who say fook em they took the chance…where’s the empathy …..same lads laughed at others buying fertiliser last autumn and during spring …the tune changed when they had to purchase and weren’t able to get what they wanted and price hardened further

hopefully other coops will follow along simillar lines of what Glanbia did for worst affected suppliers

Green&Red

https://www.boards.ie/discussion/comment/118940082#Comment_118940082

Can’t argue with that. Top notch job on casual racism, fair play

atlantic mist

farm input cost support is a loan, they can raise finance at 1% vrs our 5%....the support is the interest

ya it was great that they were able to adjust the scheme, we were not in a good position to be negotiating with the buyer, so you have to tip your hat to both, but its a small gesture on a large contract which has been overhyped, at least 80% of contract unchanged, glanbia connect/agriland vrs actual contract are two different things

i outlined from outset id be honouring contract as best i could, thats business have to take the good with the bad. the 32c was a great price at the time and still is, the actual problem is that costs have spirled out of control so our buying power had crashed, contracts at 30,31.5,32 are not economically viable at present if you have any sort of borrowings

what has been done buys time for everything to settle down, if gas doesnt start flowing to eu were all going to be in trouble for fert and feed next year, fixed price scheme suppliers will be first on the block, our contracts then could be passed out if not filled, it could turn into a big mess

if milk price ever goes to 15cl the other way (which has also never happened thats 15cl base, and wheat goes to 120 a ton and fert at 120 a ton and oil to 40a balrrel) ill gladly give the same customer 20% extra on 20% of the volume....after a year....and a bottle or two of balies cause they'll need it:) i wouldnt look for applause or double the contract returned at my agreed price thats going too far:)

in all seriousness if you have a long term relationship in business and the occurance of a once in century event outside of anyones control, you would review the contract or at least on a year by year basis, especially if costs can be passed on, those that stand there ground id like to see the same hard line approach to them if looking for renewal at end of contract...we need ethical buyers in food production not vultures

dont be fooled with coop talk, were individual business no coop will save anyone, were a supplier and no more than that, the only "coop talk" is that if we dont fulfil contract our "coop" will pass out balance of contract to other suppliers/neighbours, really parish priest talk to frighten everyone into fulfilling contracts, which is not needed and adds to the back lash from other suppliers

how are all the coops dealing with the increase in gas prices..what about the increase in diesel prices..whos going to pay for that in fixed price schemes all ready agreed, wonder is that factored into contracts???

https://www.boards.ie/discussion/comment/118938295#Comment_118938295

As I understand it,Glanbia have offered a 5cpl LOAN to those stuck on fixed price

This has to be paid back and if that as price is dropping, its more pain

I'm aware of one farmer who has always claimed to have most of his milk in fixed schemes ,a 500k litre herd

On an 8000 litre collection,he's getting 800 euros a collection less than those who are not

Its stark

https://www.boards.ie/discussion/comment/118937331#Comment_118937331

That scheme only really appeals to lads with most of their milk stuck in the 30's

You'd want your head read otherwise

Bass Reeves

I could never see the gra for fixed price scheme's. They were virtually all set a 2-3c/ L below market prices at the time with the exception being when milk price was below 25c/ L.

Fir the last 2-3; years milk and commodity price trends have been upwards. I could never understand the gra to fix your output price if you could not fix input prices. The risk was too great.

As well processor's and buyers insert clauses to protect themselves but there is never clauses to protect the farmer.

Whatevers about two years ago any lad that entered a fixed price scheme last year at 32c/L with projected milk prices heading towards 36/L were not making a rational business decision.

Last May.a neighbor saw some light HE blocks I had and commented that Ballinrobe was paying 4.1/ kg at for them and I should send them there. I made the point that it was uneconomical to replace them. They have grossed about 1100 euro. I factored even at a base price of 3.9 they would make 1250-1300 to euro. The actual base price was 20-25c/ kg better than that so they came into 1400+ euro.

Even without the Russian Ukraine war. Commodities would have risen in price

greenfield21

These schemes were pre covid? And how long do they last?

Bass Reeves

https://www.boards.ie/discussion/comment/118942875#Comment_118942875

Fixed price scheme's are usually three years in duration.lads that fixed in 2021/22 are the lads under pressure.

Injuryprone

Dairygold up to 45.85 plus 0.65 quality bonus plus 1.0 march bonus. Bonuses are plus vat but not adjusted for solids.

Bass Reeves

https://www.boards.ie/discussion/comment/118946564#Comment_118946564

That is a fair belter of a price. There will be lads with better solids hitting above 50c/L with that price