Milk Price III

whelan2

Farmer Ed wrote: »

I suppose the student issue while relevant, is really a side story to the fact that for the first time ever an Irish farm organization is suggesting we do our costs of production the same way as they do in every other European country and that includes putting a value on time. That for me is a milestone in the way farmers view themselves in this country. I for one certainty hope it comes to pass.

Does it matter though if it's a student/family labour, fair enough its cheap labour but costs differ on all farms anyway

Farmer Ed

whelan2 wrote: »

Does it matter though if it's a student/family labour, fair enough its cheap labour but costs differ on all farms anyway

I don't know the nuts and bolts of what is being proposed but I would imagine there would be some standard basic calculation. Pitting one farmer against the other shouldn't be the objective but rather bring a bit of reality in to how we calculate our costs for our own personal benefit. The way its set up at the moment is farmers are competing with each other as to who can produce the cheapest. Ultimately is that healthy? Back to the analogy of your BMW. Would you pay more for it than you might for your Fiat if you knew it cost less to produce than the Fiat? If we are to sell on quality. Our low cost of production is the last thing we should be highlighting surely?

Brown Podzol

The full cost of producing milk in Ireland is already available from IFCN, which Teagasc is a member of. Analysed in IFJ last Nov.

http://www.farmersjournal.ie/milk-production-costs-worldwide-234776

Cost indicator: The IFCN uses the indicator cost of milk production only which can be directly related to a milk price. This cost includes all costs from the profit & loss account of the farm. From this cost level, the non-milk returns from sales of cull cows, heifers, calves, manure, etc. and also returns from coupled direct payments have been deducted. Furthermore, the opportunity costs for own labour, land and capital are also included. For creation of the world map, the average size farm from each country was used.

Water John

Don't think anyone has heard a Teagasc or any other type of advisor mention 33cent/l before.
Thanks for that, Podzol.

Farmer Ed

Water John wrote: »

Don't think anyone has heard a Teagasc or any other type of advisor mention 33cent/l before.
Thanks for that, Podzol.

Let's hope for a 1c rise next month so that the average Irish Joe Farmer can actually break even. The one glaring thing from their website is that we are not as low cost as we think. $40 to $50/dollars to produce 100 kgs of Irish milk ?

kowtow

Farmer Ed wrote:

I don't always agree with the views of the farm organizations but hard to disagree with this and about time too.

This call by Icsma to include labour in cost of production is a very important step and ... in my personal opinion... reflects a view which has been expressed here and on social media many times in recent years by many farmers.

It doesn't matter so much the precise basis upon which COP is calculated, that can and could be a subject for endless discussion, but the principle that dairy farms have zero labour costs because they are typically staffed by families is an unhelpful one leading to unrealistic expectations from the farm upwards and nasty bumps in the business model if expansion is on the cards.

The basis for this is actually already present in the 2011 teagasc report on competitiveness. It's a while since I read it but my recollection is that whilst Ireland is competitive on a free land and labour basis it is a long way down the list when these are fully costed. I was a bit surprised when I first read the harvest 2020 spiel to find that this report was already in circulation and in some ways the two appear irreconcilable.

What will be interesting in the coming years is to see whether and how the narrative changes. The 2011 report is pretty clear that the full COP picture in Ireland is primarily (inversely) driven by herd size and scale, a constant challenge and something which is perhaps at odds with the family farming model so widely touted.

I'd like to see a more comprehensive version of that analysis updated with the lessons learnt in the meantime, and perhaps taking in a fuller study of the top line... the nature of marginal milk in the world market, the possible futures of liquid and seasonal milk especially post brexit, and the processing landscape.

To my untutored and less than objective eye I detect two different strains of farm emerging... on the one hand those seeking scale and expansion, often highly focused on solids EBI and fertility and often x breeding.... essentially chasing maximum solids from minimum labour units with expansion limited by the milking platform(s)...

And on the other hand a more nuanced version of the 'typical' family farm. Often sticking with b+w and often sceptical of EBI. More breeding for type and more emphasis on yield. Some of these farms already milk AYR and others will trade a tight calving pattern for more production.

Around me at least both approaches have benefitted from better grazing management, visibly, in the few years I have been here. It strikes me that the second type might have as much to gain from really optimising their baling, buffer feeding, and possibly FTY as the first type have from genomics, EBI, and tight calving patterns.

Most public commentary, and the processing chain, seems to me to assume that the first type of farm is the only valid model and act as if the national herd would only conform everyone would be happy and profitable. To me this seems to miss some valuable opportunities in the short term and risk a bit of a one trick pony in the long term.

Is there really all that much difference between these two imagined models? Will the two roads they are travelling converge or diverge in the future?

yewtree

Is there really all that much difference between these two imagined models? Will the two roads they are travelling converge or diverge in the future?[/quote]

I think the main difference is the added complexity in AYR calving with different groups of stock, two calving and breeding seasons.
Both systems are profitable and good managers will make any system work. An average manager is better off in a simple system.

whelan2

Glanbia milk payments are in bank account today

orm0nd

whelan2 wrote: »

Glanbia milk payments are in bank account today

Arrabawn are in as well. Well just passing through in my case.

freedominacup

orm0nd wrote: »

Arrabawn are in as well. Well just passing through in my case.

Well just as long as you get to sit down with them for five mins and have a cuppa it won't be too bad.

Buford T. Justice XIX

GDT up 3.1%

Butter up 2.9% and Skim up 7.1%.

Expect to see some movement out of EU stores this month, hopefully. It should help put a base on the milk price for the Summer hopefully.

Mooooo

Dairygold holding at 31cent

yewtree

Aurivo holding 32.4 but that includes early milk bonus of 1.4 cent which will be finished next month

degetme

yewtree wrote: »

Aurivo holding 32.4 but that includes early milk bonus of 1.4 cent which will be finished next month

Is that on all milk supplies in Jan Feb march April? None of that with Kerry

Buford T. Justice XIX

degetme wrote: »

Is that on all milk supplies in Jan Feb march April? None of that with Kerry

Kerry haven't even finished paying us for 2015 milk yet:D

yewtree

degetme wrote: »

Is that on all milk supplies in Jan Feb march April? None of that with Kerry

Only paid on Feb and March milk. Not sure what the story is with liquid suppliers with coop

degetme

Buford T. Justice V wrote: »

degetme wrote: »

Is that on all milk supplies in Jan Feb march April? None of that with Kerry

Kerry haven't even finished paying us for 2015 milk yet:D

Is there talks of a top up on last years supply? Got 33.4cl of that shower today

Buford T. Justice XIX

degetme wrote: »

Is there talks of a top up on last years supply? Got 33.4cl of that shower today

It depends on the result of the mediation/arbitration 'discussion'. If its won, there will be, if not, i wouldn't say so.

degetme

Buford T. Justice V wrote: »

degetme wrote: »

Is there talks of a top up on last years supply? Got 33.4cl of that shower today

It depends on the result of the mediation/arbitration 'discussion'. If its won, there will be, if not, i wouldn't say so.

would you know when the result will be? I heard there might be a top up on last years supply Saturday night but I was after a few pints so things could have got mixed up

cute geoge

Buford T. Justice V wrote: »

It depends on the result of the mediation/arbitration 'discussion'. If its won, there will be, if not, i wouldn't say so.

When can we expect a result of arbitration

Buford T. Justice XIX

cute geoge wrote: »

When can we expect a result of arbitration

Tbh, i expected it around now but no sign yet and not a peep out of anyone about it either.

atlantic mist

http://www.independent.ie/business/farming/dairy/strathroy-goes-head-to-head-with-glanbia-and-lakelands-for-suppliers-35629787.html

nice to see a bit of healthy competition, wouldn't be long till they get down south to me:)

Timmaay

atlantic mist wrote: »

http://www.independent.ie/business/farming/dairy/strathroy-goes-head-to-head-with-glanbia-and-lakelands-for-suppliers-35629787.html

nice to see a bit of healthy competition, wouldn't be long till they get down south to me:)

So if we want to keep our options open (doesn't everyone!), then we should put on notice once the 5years have passed. Are there any disadvantages to putting in your notice, can Glanbia exclude you from the likes of the milk price topup scheme etc? I've no plans on changing right at the minute but do like to keep opinions open always!!

Water John

The Gentlemens/ICOS norm is 90 days notice. Don't know if Sthrathroy care.
Once you are not tied in with an MSA, transfer in the dry season. If that is what you want to do.
If you sign an new long term MSA, you close the door on yourself.
If the farmer orgs has any b***s they would openly oppose long term MSAs.
I have no problem with a supplier and processor committing to each other for 12 months.

whelan2

Timmaay wrote: »

So if we want to keep our options open (doesn't everyone!), then we should put on notice once the 5years have passed. Are there any disadvantages to putting in your notice, can Glanbia exclude you from the likes of the milk price topup scheme etc? I've no plans on changing right at the minute but do like to keep opinions open always!!

You can give 2 years notice next January. As far as I know you dont have to follow through with leavi. But it's just to let them know you are thinking of going

wats the craic

whelan2 wrote: »

You can give 2 years notice next January. As far as I know you dont have to follow through with leavi. But it's just to let them know you are thinking of going

sure we are always looking for new members to the family ......

Buford T. Justice XIX

German milk price not covering costs.

http://www.farmersjournal.ie/german-milk-price-covers-only-77-of-production-costs-survey-270974

whelan2

wats the craic wrote: »

sure we are always looking for new members to the family ......

It said in the farming independent they are looking for manufacturing suppliers. Do they take liquid too?

wats the craic

whelan2 wrote: »

It said in the farming independent they are looking for manufacturing suppliers. Do they take liquid too?

yes they do but they are tring to balance the supply curve so to have more manufacturing milk in line with other coops and to feed the new dryer they have up there . why not give them a ring and see wat they say to ya if interested . they are very fair and straight talking men

GrasstoMilk

wats the craic wrote: »

yes they do but they are tring to balance the supply curve so to have more manufacturing milk in line with other coops and to feed the new dryer they have up there . why not give them a ring and see wat they say to ya if interested . they are very fair and straight talking men

How often do you get milk results WTC?
have to admit I like getting my milk results on ever collection and it's something I would miss