Milk Price III

whelan2

Had our meal group meeting last night, I cant see how any of the other millers would be able to compete with glanbia when the rebate is accounted for, even non shareholders will get 14 euro /tonne off group price.

Farmer Ed

whelan2 wrote: »

Had our meal group meeting last night, I cant see how any of the other millers would be able to compete with glanbia when the rebate is accounted for, even non shareholders will get 14 euro /tonne off group price.

May well be so. But what happens to the price when all the other millers go out of business?

leg wax

if all other millers rations are around 240 a ton glanbia only has to be around 270 to match:eek:

whelan2

leg wax wrote: »

if all other millers rations are around 240 a ton glanbia only has to be around 270 to match:eek:

Apparently you do your own deal with your glanbia rep for your price for meal for the 5 year scheme

jaymla627

whelan2 wrote: »

Had our meal group meeting last night, I cant see how any of the other millers would be able to compete with glanbia when the rebate is accounted for, even non shareholders will get 14 euro /tonne off group price.

Can safely say having tried out a load of what was supposedly their best 16% nut even if I was getting it at 50 euro a ton cheaper then my usual crowds 16% I still wouldn't buy it, would lose north of a 1000 litres a cow yearly if I had to go with glanbia feed given the crap they put in it

Floki

How can they stop anyone getting a few load over the year of meal from another merchant.
How would they know?

Hardly have the milk lorry drivers watching the glass on the meal bins and reporting back.

whelan2

Floki wrote: »

How can they stop anyone getting a few load over the year of meal from another merchant.
How would they know?

Hardly have the milk lorry drivers watching the glass on the meal bins and reporting back.

As its based on loyalty they look at what you have bought off them over the last 3years before you get your allocation

whelan2

jaymla627 wrote: »

Can safely say having tried out a load of what was supposedly their best 16% nut even if I was getting it at 50 euro a ton cheaper then my usual crowds 16% I still wouldn't buy it, would lose north of a 1000 litres a cow yearly if I had to go with glanbia feed given the crap they put in it

Reading through the ingredients last night they were actually not bad. That said they might not use those specific ingredients at the time

atlantic mist

i have applied for the scheme

cant see it putting private mills out of business as dwag has highlighted numerous times they have a margin of about a 100 euro on every ton of dairy ration so they all have scope to reduce price and increase quantity

other mills have been trying to improve foot hold in fertiliser market and glanbia had to price match last two years here, so may they decided its times for private mills to do the same with ration

Floki

whelan2 wrote: »

As its based on loyalty they look at what you have bought off them over the last 3years before you get your allocation

So if you didn't buy much meal off them in the last 3 years it's not worth applying?

Or should I say it is worth applying if you want a bigger allocation of milk fixed price than if you didn't apply for the meal as well and so you can still buy from other merchants as well.

George Sunsnow

If you are contracting to buy solely off Glanbia ,you run the risk of being sanctioned if you buy off other suppliers

I’d say it’s bunracht na h’Éireann unconstitutional except you can always stop buying altogether from them if they get stroppy
However if you’re still supplying milk to them,they could come along and cancel your fixed contract under some small print related to the meal maybe?
It’s nonsense unless sewn up like that

I’ve not looked at it because I’m not interested

Water John

I think Glanbia suppliers know what it's like to be tied in for 5 years. If one chooses to do it, a second time, then Oscar Wilde's writing comes to mind. To lose one husband.....etc.

boggerman1

Not a glanbia supplier directly but am tru my co-op and whatever about the meal rebate that glanbia suppliers are been tied into we didn't get the top up on the milk price for 1st 6 months of this yr.some of the esteemed members of the committee wanted to keep it for the co-op and not pay it out.use it as a so called propping up when price falls.neadless to say there is a lot of anger about this.will be interesting to see if we get it next pay day

boggerman1

Latest gdt down 2.3%.butter,smp,wmp down.is the bubble on butter going as it was gone too dear?

mahoney_j

boggerman1 wrote: »

Latest gdt down 2.3%.butter,smp,wmp down.is the bubble on butter going as it was gone too dear?

If/when butter bubble bursts milk price will drop like lead .true effects of the high butter prices are only now been felt

K.G.

mahoney_j wrote: »

If/when butter bubble bursts milk price will drop like lead .true effects of the high butter prices are only now been felt

Would be more worried about skim than butter.seems to be a move on to sort the issue t what ever price

mahoney_j

K.G. wrote: »

Would be more worried about skim than butter.seems to be a move on to sort the issue t what ever price

Skim is friendless tho and selling below intervention .only thing to cure it is demand

Farmer Ed

Kind of makes a joke of the a + b - c price system as the a part ie the part that is made in to skim is still being paid for at a higher rate than the b part ie the fat part that makes butter. OK I get the point that the price would possibly still pan out the same but just their is no logic in an a+b-c system of payment if it does not reflect the market. Might as well have a flat rate milk price and cut down on milk testing costs altogether.

kowtow

Farmer Ed wrote: »

Kind of makes a joke of the a + b - c price system as the a part ie the part that is made in to skim is still being paid for at a higher rate than the b part ie the fat part that makes butter. OK I get the point that the price would possibly still pan out the same but just their is no logic in an a+b-c system of payment if it does not reflect the market. Might as well have a flat rate milk price and cut down on milk testing costs altogether.

Wasn't the original Irish system paid on butter fat only?

kowtow

boggerman1 wrote: »

Latest gdt down 2.3%.butter,smp,wmp down.is the bubble on butter going as it was gone too dear?

The important price to watch for butter is not how high it goes now but what it settles at when it falls. That might take months, maybe years, so patience is required.

If there's a real underlying change going on in butter consumption then a whole lot of current processing and marketing plans ought to be up for discussion in the medium / long term.

Buford T. Justice XIX

kowtow wrote: »

The important price to watch for butter is not how high it goes now but what it settles at when it falls. That might take months, maybe years, so patience is required.

If there's a real underlying change going on in butter consumption then a whole lot of current processing and marketing plans ought to be up for discussion in the medium / long term.

I was at a meeting last night and one of the speakers mentioned that substitution of dairy with veg oils are already happening. In the lower end of the food quality spectrum, like croissants, the cheaper ones are reducing the butter content dramatically as they are nearing the end of their stocks of forward bought butter. It won't be as dramatic at the top end as they can force some price rises from consumers but it will happen there as well.

Also, stocks of produce in the US are currently at a 3 year high even with Mexico buying large quantities of dairy product in preparation for Trumps proposal to impose levies on Mexican imports to pay for his wall. China has imported large quantities of products this year which was described as similar to their buying patterns prior to the last boom and bust.

New Chinese rules prohibit foreign companies from exporting more than 3 brands into China at any one time and, with Fonterra after buying Beingmate, Kerrys partner in infant formula production, Kerry are looking a wee bit exposed to being bumped off the partnership and replaced by Fonterra in the next few years.

Floki

Buford T. Justice V wrote: »

I was at a meeting last night and one of the speakers mentioned that substitution of dairy with veg oils are already happening. In the lower end of the food quality spectrum, like croissants, the cheaper ones are reducing the butter content dramatically as they are nearing the end of their stocks of forward bought butter. It won't be as dramatic at the top end as they can force some price rises from consumers but it will happen there as well.

Also, stocks of produce in the US are currently at a 3 year high even with Mexico buying large quantities of dairy product in preparation for Trumps proposal to impose levies on Mexican imports to pay for his wall. China has imported large quantities of products this year which was described as similar to their buying patterns prior to the last boom and bust.

New Chinese rules prohibit foreign companies from exporting more than 3 brands into China at any one time and, with Fonterra after buying Beingmate, Kerrys partner in infant formula production, Kerry are looking a wee bit exposed to being bumped off the partnership and replaced by Fonterra in the next few years.

On the point of the substitution.
Isn't it a bit crap now in the world we live in now where corporate profits are more important than people's health.
I know that's a bit naive of me but the same thinking from processors led to the horse meat scandal.
It's the world we live in now I suppose! :rolleyes:

kowtow

Floki wrote: »

On the point of the substitution.
Isn't it a bit crap now in the world we live in now where corporate profits are more important than people's health.
I know that's a bit naive of me but the same thinking from processors led to the horse meat scandal.
It's the world we live in now I suppose! :rolleyes:

Couldn't agree more.

I think it was joel salatin who said that people complain when they see a farmer driving a Mercedes down the road, but expect their Doctor to drive one. On the basis that their health depends as much on the farmer as the Doctor this is an absurd contradiction.

As far as dairy substitution is concerned the figures seem to be showing two trends pulling against each other - first, "alternative" milks - soy, almond, etc. - are beginning to have a real presence with up to 30% of younger consumers taking them at some point or another and second - there is beginning to be a real skepticism about "expert" health opinion and a corresponding move back to full fat dairy, local meat, local vegetables etc. with a real surge in the use of farm shops among the general population instead of just the wealthy niche markets.

Interesting times ahead, but I think baby formula is probably a blind alley.

Buford T. Justice XIX

Buford T. Justice V wrote: »

I was at a meeting last night and one of the speakers mentioned that substitution of dairy with veg oils are already happening. In the lower end of the food quality spectrum, like croissants, the cheaper ones are reducing the butter content dramatically as they are nearing the end of their stocks of forward bought butter. It won't be as dramatic at the top end as they can force some price rises from consumers but it will happen there as well.

Also, stocks of produce in the US are currently at a 3 year high even with Mexico buying large quantities of dairy product in preparation for Trumps proposal to impose levies on Mexican imports to pay for his wall. China has imported large quantities of products this year which was described as similar to their buying patterns prior to the last boom and bust.

New Chinese rules prohibit foreign companies from exporting more than 3 brands into China at any one time and, with Fonterra after buying Beingmate, Kerrys partner in infant formula production, Kerry are looking a wee bit exposed to being bumped off the partnership and replaced by Fonterra in the next few years.

One further point, German and French production has declined month on month since last summer but there is signs of recovery in German supplies but little in French as yet. Gawd might have more up to date info on that though, the chart we saw was from a few months ago.

Gawddawggonnit

Buford T. Justice V wrote: »

One further point, German and French production has declined month on month since last summer but there is signs of recovery in German supplies but little in French as yet. Gawd might have more up to date info on that though, the chart we saw was from a few months ago.

Drought and rationalisation at farm level are hitting production in France. French production will be down a little because of ongoing drought since June 2016. Croissant price has risen but other large end users of butter are actually starting to source butter substitutes.

It's hard to be bullish about a market that's being propped by one product, butter (and Eu intervention), in the face of a tsunami of cheap feed grains in store...but rock on folks, white gold and all that!

Gawddawggonnit

Spent the evening with a very interesting bloke.
I went there to buy a jeep and ended up taking 61ha of land from him...he has 1ha of land down to snails that produces 10 ton of snails per year.
12 people working on the premises and exporting cosmetics etc all over.

Google www.maisonroyer.fr

Warms the cockles to see innovation and vision like that.



***Kowtow is bang on lads but ye won't listen!!

Mooooo

Gawddawggonnit wrote: »

Drought and rationalisation at farm level are hitting production in France. French production will be down a little because of ongoing drought since June 2016. Croissant price has risen but other large end users of butter are actually starting to source butter substitutes.

It's hard to be bullish about a market that's being propped by one product, butter (and Eu intervention), in the face of a tsunami of cheap feed grains in store...but rock on folks, white gold and all that!

Oil dropping a tad also.

boggerman1

I see glanbia have topped milk price league for August on the journal today.my crowd rock bottom.h'on Centenary and all that😉

whelan2

boggerman1 wrote: »

I see glanbia have topped milk price league for August on the journal today.my crowd rock bottom.h'on Centenary and all that😉

I dont think the one cent should have been included there, what do ye think?

Farmer Ed

whelan2 wrote: »

boggerman1 wrote: »

I see glanbia have topped milk price league for August on the journal today.my crowd rock bottom.h'on Centenary and all that😉

I dont think the one cent should have been included there, what do ye think?

Well I suppose its fair to say that the big co ops have always had a good working relationship with the comic