Milk Price III

George Sunsnow

Keepgrowing wrote: »

We can add c5 cent with solids so 39 for 5 years id take in a heartbeat

Solids are irrelevant to the decision as you do them yourself
They are that 5 or 6 c above a 36c or 38c market price too

For that reason and others previously discussed I’m out

Keepgrowing

George Sunsnow wrote: »

Solids are irrelevant to the decision as you do them yourself
They are that 5 or 6 c above a 36c or 38c market price too

For that reason and others previously discussed I’m out

The question was would I fix at 34c. I would based on the fact that I'd get 39c for all I've fixed.

It's a personal choice and some like it some don't iykwim

George Sunsnow

Keepgrowing wrote: »

The question was would I fix at 34c. I would based on the fact that I'd get 39c for all I've fixed.

It's a personal choice and some like it some don't iykwim

Yeah at 34c,what would help decide in favour is if 100% of suppliers milk was in and as for inputs,they were frozen

Instead everyone gets different amounts and on form everyone will have bits at various amounts lower than the 31 in future

Those are just some of the other reasons I’m out

Keepgrowing

George Sunsnow wrote: »

Yeah at 34c,what would help decide in favour is if 100% of suppliers milk was in and as for inputs,they were frozen

Instead everyone gets different amounts and on form everyone will have bits at various amounts lower than the 31 in future

Those are just some of the other reasons I’m out

Why would you be keen for 100% of suppliers to be in? I really think it may not suit everybody. It's the optional part I like.

Very hard to look for inputs to be frozen considering how many people we all do business with.

George Sunsnow

Keepgrowing wrote: »

Why would you be keen for 100% of suppliers to be in?.

Because we’re a Co Op?

Farmer Ed

George Sunsnow wrote: »

Because we’re a Co Op?

George as John B Keane pointed out the only way to make every farmer happy is to give him a little bit more than the other farmers

Keepgrowing

George Sunsnow wrote: »

Because we’re a Co Op?

I'm just asking, if 90% wanted in and 10% didn't do you think there should be no scene?

It's actually a JV between a coop and a Plc. I know you know that but for clarity for other posters!

whelan2

Im out. I think that 5years is too long. Each to their own.

Mooooo

Meant for dairy chat thread

Coolfresian

Out as well. 5 years is too long a commitment to the same supplier. We are comfortable managing our own risk here.
However, If someone signs up to the contract and if the price drops to low 20s and the farmer wishes to exit milk production during the term is there any liability of the contract not bring fulfilled??

mf240

Farmer Ed wrote: »

George as John B Keane pointed out the only way to make every farmer happy is to give him a little bit more than the other farmers

Didn't know john b milked cows.

George Sunsnow

Keepgrowing wrote: »

I'm just asking, if 90% wanted in and 10% didn't do you think there should be no scene?

In such a scenario I think the other 10% in your example should have the freedom to negotiate with an alternative supplier or take the 34c

It's actually a JV between a coop and a Plc. I know you know that but for clarity for other posters!

60% owned by the CoOp and if the 40% co owner doesn’t like the spirits and ideals of the Co operative movement (fair opportunity to all its members),then it should sell its 40%, ideally to Glanbia CoOp so said fairness could be implemented rather than the current situation of the tail wagging the dog

GrasstoMilk

Haven't decided here yet.
Doubt we'll be changing supplier. We are in most of the fixed milk schemes ATM. But 5 years is too long I think.
3 years ago milk was at 40c base today it's at 35c. And it probably will be at that forbthe next year.
We can tack on another 6 c to base with our solids here aswell.

That being said I could be wishing in 14 months time when milk is at 25c that I had my 31c fixed and the 5/6c added on with solids

mahoney_j

Details of our next scheme been finalized and will be interesting as to how it goes ,I’d have no issue fixing at 31 cent but not if it’s tied to inputs ,5 years wouldn’t worry me ,some years I’d loose out but the years I’d gain I’d be damn happy

whelan2

GrasstoMilk wrote: »

Haven't decided here yet.
Doubt we'll be changing supplier. We are in most of the fixed milk schemes ATM. But 5 years is too long I think.
3 years ago milk was at 40c base today it's at 35c. And it probably will be at that forbthe next year.
We can tack on another 6 c to base with our solids here aswell.

That being said I could be wishing in 14 months time when milk is at 25c that I had my 31c fixed and the 5/6c added on with solids

I probably wouldn't be leaving either, but being paid a crap base price for the last few years has bugged me. At least if I'm not tied to them for a Long time I can consider my options

Farmer Ed

mf240 wrote: »

Didn't know john b milked cows.

I didn't know he did either? But he did sell a lot of drink and provide a lot of group therapy for people who did milk cows.

Mooooo

GrasstoMilk wrote: »

Haven't decided here yet.
Doubt we'll be changing supplier. We are in most of the fixed milk schemes ATM. But 5 years is too long I think.
3 years ago milk was at 40c base today it's at 35c. And it probably will be at that forbthe next year.
We can tack on another 6 c to base with our solids here aswell.

That being said I could be wishing in 14 months time when milk is at 25c that I had my 31c fixed and the 5/6c added on with solids

The catch is when price is higher solids have abigger effect, when price is lower solids have a lower effect so with yer high solids it may be a better call, but hard to know at times.
Thing is once decision is made no point going shoulda done this/ that etc just drive on, can examine it again when next one comes out

Farmer Ed

whelan2 wrote: »

I probably wouldn't be leaving either, but being paid a crap base price for the last few years has bugged me. At least if I'm not tied to them for a Long time I can consider my options

That's the spirit Whelan. You dont have to be married to them to remain faithful. But having the option of walking away should increase your chances of keeping the romance alive and you might even get a bunch of flowers from them now and again if they have to compete for your affection.

kowtow

I'll say one thing for this thread, notwithstanding the views on whether the current 31c / 5 years is a good one or not.

There's a fair bit more informed, critical thought & stronger views about co-ops and processors than there was a couple of years ago. If co-ops as a whole were in the hands of posters here I don't think we'd have too much fear of them.

Whatever else the drop in milk price did last year it knocked a few blinkers off, and all the better for it.

freedominacup

Coolfresian wrote: »

However, If someone signs up to the contract and if the price drops to low 20s and the farmer wishes to exit milk production during the term is there any liability of the contract not bring fulfilled??

No.

alps

mahoney_j wrote: »

Details of our next scheme been finalized and will be interesting as to how it goes ,I’d have no issue fixing at 31 cent but not if it’s tied to inputs ,5 years wouldn’t worry me ,some years I’d loose out but the years I’d gain I’d be damn happy

How long was your last scheme for? This one, if being planned for at the moment will probably have a new year sign up date...the last one had a pretty long lead in time if I can remember.....

They'll never risk an inputs clause without knowing the outcome of the glanbia attempt...will they?.....unless they come with a screamer of fix price.....

34c fix by next April is my guess..

Water John

I thought Barryroe were the only other ones linking input purchase to milk price, or contracts?

As I said before, that was hard fought against, close on 50 years ago, by good IFA men, of the time, in the sugar beet industry.
Hard to watch it skulking back in the gate.

rangler1

alps wrote: »

How long was your last scheme for? This one, if being planned for at the moment will probably have a new year sign up date...the last one had a pretty long lead in time if I can remember.....

They'll never risk an inputs clause without knowing the outcome of the glanbia attempt...will they?.....unless they come with a screamer of fix price.....

34c fix by next April is my guess..

Grennans are guaranteeing 31.5c/ltr for up to 20% of their milk for five years with no obligation to buy their proucts

mahoney_j

alps wrote: »

How long was your last scheme for? This one, if being planned for at the moment will probably have a new year sign up date...the last one had a pretty long lead in time if I can remember.....

They'll never risk an inputs clause without knowing the outcome of the glanbia attempt...will they?.....unless they come with a screamer of fix price.....

34c fix by next April is my guess..

3 years from current year ,yeadh I’d say waiting on glanbia attempt and seeing how markets and butter in particular pan out ,second scheme will be early next year ,if they offer a fixed price of 34 cent I’d stick the max I could into it ,34 plus solids

Keepgrowing

rangler1 wrote: »

Grennans are guaranteeing 31.5c/ltr for up to 20% of their milk for five years with no obligation to buy their proucts

Red mills and Liffeys are at 35

Keepgrowing

whelan2 wrote: »

Im out. I think that 5years is too long. Each to their own.

The feed element is making it really attractive for us. €30/tonne not to be sniffed at when feeding close to 1 tonne per cow.

K.G.

alps wrote: »

How long was your last scheme for? This one, if being planned for at the moment will probably have a new year sign up date...the last one had a pretty long lead in time if I can remember.....

They'll never risk an inputs clause without knowing the outcome of the glanbia attempt...will they?.....unless they come with a screamer of fix price.....

34c fix by next April is my guess..

Dream on

Farmer Ed

K.G. wrote: »

alps wrote: »

How long was your last scheme for? This one, if being planned for at the moment will probably have a new year sign up date...the last one had a pretty long lead in time if I can remember.....

They'll never risk an inputs clause without knowing the outcome of the glanbia attempt...will they?.....unless they come with a screamer of fix price.....

34c fix by next April is my guess..

Dream on

It would be very easy for any co op to offer something like that. A cent of 90% of supply and very easy to fix the remaining 10% of the price at an artificial level.
Question is ? Will farmers be any better off on average?

George Sunsnow

Keepgrowing wrote: »

The feed element is making it really attractive for us. €30/tonne not to be sniffed at when feeding close to 1 tonne per cow.

Depends on how competitive that ends up versus others
As you know Glanbia’s idea of market price versus reality are two very different things
Their competitiveness record in their stores is very poor
Their competiveness record on milk is non existent
Always look at track records

Tie-ing in for 5 years with their record wouldn’t be calamitous,just too restrictive if they carry on as heretofore pretending against all evidence that they’re competitive.
Based on their track record I’m out

whelan2

Keepgrowing wrote: »

The feed element is making it really attractive for us. €30/tonne not to be sniffed at when feeding close to 1 tonne per cow.

Can get same value or better in a buying group and not tied to minimum 2years. Look you seem happy to be tied to them for the 5years. Im not. As from the last msa we have all been duped with the lowest base price. If you're happy to accept that going forward with no certainty of your fixed price allocation that's your choice. I've made mine.