Milk Price III

whelan2

Coolfresian wrote: »

It's 2700 on my milk cheque. What can we do as glanbia suppliers?

Dont know, but handing in my 2 years notice is looking very enticing

Coolfresian

whelan2 wrote: »

Dont know, but handing in my 2 years notice is looking very enticing

A large number of suppliers giving their notice would be needed to wake them up. Certainly things can't go on as they are

whelan2

It's a kick in the teeth to all "loyal" glanbia suppliers.

mf240

Water John wrote: »

Something around a 10% differential. Serious money.
A tidy store bullock, one buyer offers you €800, another says he'll give €880.
That's a hard one to decide.

Or give ya 780 and another 20 for the snowy weather.

mahoney_j

Coolfresian wrote: »

Arrabawn down 1 to 36.1 Makes a joke of glanbia!

Not true they cut 3 cent but pay a early calving bonus of 2 cent for February milk .this was announced at last years agm.base is 34.05 plus vat and that bonus

whelan2

mahoney_j wrote: »

Not true they cut 3 cent but pay a early calving bonus of 2 cent for February milk .this was announced at last years agm.base is 34.05 plus vat and that bonus

Still well ahead of Glanbia

Timmaay

mf240 wrote: »

They have a 4.25 cent bonus for Feb and last two weeks in Jan. It's for manufacturing supplies and you need to be over 3% in Feb and under 15% in June. Which brings them up a bit for a lot of lads. Plus they will give you free cheese at the ploughing, not to be sneezed at.

Under 15% in June would be a struggle for fair few lads I'd say, I'm 14.5% and milk over the winter. In any case the 4.25c bonus doesn't apply to me as I'm in liquid milk. My total liquid bonus comes to about 5k/yr, if glanbia end up consistently 2c/l under everyone else for rest of the year then I'd be losing about 12k in milk sales, the liquid bonus only thing keeping me with Glanbia so far, but them sums take away that excuse.

Gawddawggonnit

wrangler wrote: »

France is probably just further down the line in farming than Ireland,
I was telling a young part time farmer in the last few days that the way things were looking that he'd have the choice of several farms around here in ten years, also talking to a friend that told me he had offered his farm to a few of his relatives with no success and he himself had inherited a lot of land over the years.
Maybe ten years from now land here will 1k/acre too

It wouldn’t suit nor benefit anyone if land went €1k/acre Wrangler.
Land will always be way overvalued. I’d like to think that it would continue to be a good long term investment and store of value.

Gawddawggonnit

Brown Podzol wrote: »

http://www.greenfielddairy.ie/financial/

Financials here up to 2016.

Not showing up BP.

wats the craic

whelan2 wrote: »

Still well ahead of Glanbia

right there has been a 2 cent cut in the milk price for strathroy . so 32 cpl plus winter bonus of 1 cent a litre , and .5 cent a litre quailty bonus plus vat which comes too 35. 3 cent a litre if my maths are right . the winter guys get the same price structure but get 7 cpl bonus instead of the 1 cpl winter bonus which is paid on every litre milk you supply during the winter season . i make the winter base price 41.633 cpl . hope thats food for thought whelan

farisfat

Gawddawggonnit wrote: »

It wouldn’t suit nor benefit anyone if land went €1k/acre Wrangler.
Land will always be way overvalued. I’d like to think that it would continue to be a good long term investment and store of value.

Why should land be worth more in Ireland than France.

Water John

The price of land is very tenously related to the product and profit it produces.
The laws of supply and demand. Less supply and more demand in Ireland. Much down to social factors.

whelan2

Bill's view https://www.farmersjournal.ie/farmer-writes-3c-l-milk-price-cut-is-a-hand-grenade-for-stressed-farmers-355150

wrangler

Gawddawggonnit wrote: »

It wouldn’t suit nor benefit anyone if land went €1k/acre Wrangler.
Land will always be way overvalued. I’d like to think that it would continue to be a good long term investment and store of value.

In your post then what do you mean by ''land price is 1k/acre and the SFP is mine''

alps

farisfat wrote: »

Why should land be worth more in Ireland than France.

Many "rural" parts of Ireland are still relatively convenient to cities and towns. This convenience coupled with Irish planning laws which have to date as such encouraged rural living, has meant that Irish rural communities are relatively vibrant compared to equivalent communities in other countries.

This accessibility leads to a huge demand on land, be it for one off housing, lifestyle blocks, and farming lifestyle itself...and presently you need to consider the extraordinary tax situation where it could be said that non farmers are now using land as a vehicle to transfer wealth...

Apologies...this is a milk price thread..

Henwin

The latest price drop has me me thinking lately about the whole viability of this dairy business.
Back in 15 and 16 when the price was on the floor we really struggled financially where we had to take out a couple of loans just to pay the bills and we are still paying for those till 2021. We can't keep doing that if the price goes down to 25/26 again.
There has been 2 milk suppliers locally that have started processing their own milk and selling it in local shops. One uses plastic bottles, the other glass.
I'm tempted to get into tat game as I'm sick of being a price taker and can never forward plan investment or income as I don't know what I'll be getting.
I would like to do something like where we do door to door deliveries every morning with glass bottles in the local area. My wife could do that while I do the milking. What would the start up costs be, a pasturiser, a wash bottle bank, a dairy that is up to standard for processing milk. We supply bout 250000 litres at the minute so we could still supply the coop with the remainder of milk. I'm thinking a euro a litre whereas my wife thinks no more than 70 cent to compete with the big retailers.
There is still a lot to discuss and figure out but I think it's a viable option.

yosemitesam1

Henwin wrote: »

The latest price drop has me me thinking lately about the whole viability of this dairy business.
Back in 15 and 16 when the price was on the floor we really struggled financially where we had to take out a couple of loans just to pay the bills and we are still paying for those till 2021. We can't keep doing that if the price goes down to 25/26 again.
There has been 2 milk suppliers locally that have started processing their own milk and selling it in local shops. One uses plastic bottles, the other glass.
I'm tempted to get into tat game as I'm sick of being a price taker and can never forward plan investment or income as I don't know what I'll be getting.
I would like to do something like where we do door to door deliveries every morning with glass bottles in the local area. My wife could do that while I do the milking. What would the start up costs be, a pasturiser, a wash bottle bank, a dairy that is up to standard for processing milk. We supply bout 250000 litres at the minute so we could still supply the coop with the remainder of milk. I'm thinking a euro a litre whereas my wife thinks no more than 70 cent to compete with the big retailers.
There is still a lot to discuss and figure out but I think it's a viable option.

A lot of it could be done reasonably cheap compared to loading on more cows. 5k would go a very long way towards bottling machine, pasteuriser etc.
You wouldn't necessarily be targeting the bottom of the market also...

K.G.

How long would it take to deliver a litre of milk, ,most houses only i use two litres a day.id say you would struggle to deliver 30 litres an hour unless in a town.how would you be paid.a vending macine would ne a better bet

whelan2

I think you need to do something different. A new or niche idea

3 the square

Henwin wrote: »

The latest price drop has me me thinking lately about the whole viability of this dairy business.
Back in 15 and 16 when the price was on the floor we really struggled financially where we had to take out a couple of loans just to pay the bills and we are still paying for those till 2021. We can't keep doing that if the price goes down to 25/26 again.
There has been 2 milk suppliers locally that have started processing their own milk and selling it in local shops. One uses plastic bottles, the other glass.
I'm tempted to get into tat game as I'm sick of being a price taker and can never forward plan investment or income as I don't know what I'll be getting.
I would like to do something like where we do door to door deliveries every morning with glass bottles in the local area. My wife could do that while I do the milking. What would the start up costs be, a pasturiser, a wash bottle bank, a dairy that is up to standard for processing milk. We supply bout 250000 litres at the minute so we could still supply the coop with the remainder of milk. I'm thinking a euro a litre whereas my wife thinks no more than 70 cent to compete with the big retailers.
There is still a lot to discuss and figure out but I think it's a viable option.

New a lad in limerick that was at it the setup cost were far higher than that close to 100k if I remember
He jacked it In collecting the money was the hardest job the supermarkets have it all sown up

Water John

There are locals doing small/medium scale and supplying into shops/cafes, not D to D. Elmvale in Bandon competes with, own brands, Avonmore and Clona, which is only, over the road.
Shops in say 20/30 mile radius. Wouldn't know the margins.

wrangler

Henwin wrote: »

The latest price drop has me me thinking lately about the whole viability of this dairy business.
Back in 15 and 16 when the price was on the floor we really struggled financially where we had to take out a couple of loans just to pay the bills and we are still paying for those till 2021. We can't keep doing that if the price goes down to 25/26 again.
There has been 2 milk suppliers locally that have started processing their own milk and selling it in local shops. One uses plastic bottles, the other glass.
I'm tempted to get into tat game as I'm sick of being a price taker and can never forward plan investment or income as I don't know what I'll be getting.
I would like to do something like where we do door to door deliveries every morning with glass bottles in the local area. My wife could do that while I do the milking. What would the start up costs be, a pasturiser, a wash bottle bank, a dairy that is up to standard for processing milk. We supply bout 250000 litres at the minute so we could still supply the coop with the remainder of milk. I'm thinking a euro a litre whereas my wife thinks no more than 70 cent to compete with the big retailers.
There is still a lot to discuss and figure out but I think it's a viable option.

We get milk left at the gate, €1.50/ltr, very convenient.
Expensive, but we only use 3 ltrs a week
The milkman has big round, but it's a big tie too,working every day,

GrasstoMilk

Henwin wrote: »

The latest price drop has me me thinking lately about the whole viability of this dairy business.
Back in 15 and 16 when the price was on the floor we really struggled financially where we had to take out a couple of loans just to pay the bills and we are still paying for those till 2021. We can't keep doing that if the price goes down to 25/26 again.
There has been 2 milk suppliers locally that have started processing their own milk and selling it in local shops. One uses plastic bottles, the other glass.
I'm tempted to get into tat game as I'm sick of being a price taker and can never forward plan investment or income as I don't know what I'll be getting.
I would like to do something like where we do door to door deliveries every morning with glass bottles in the local area. My wife could do that while I do the milking. What would the start up costs be, a pasturiser, a wash bottle bank, a dairy that is up to standard for processing milk. We supply bout 250000 litres at the minute so we could still supply the coop with the remainder of milk. I'm thinking a euro a litre whereas my wife thinks no more than 70 cent to compete with the big retailers.
There is still a lot to discuss and figure out but I think it's a viable option.

These guys aren't far from me. At it about 4 years now. You'd want to be putting 500l a day Out though it i reckon
https://m.independent.ie/business/farming/dairy/dairy-farm-profiles/theres-a-big-difference-between-30cl-and-1l-farmer-on-selling-his-milk-direct-to-the-marketplace-36697218.html

Henwin

K.G. wrote: »

How long would it take to deliver a litre of milk, ,most houses only i use two litres a day.id say you would struggle to deliver 30 litres an hour unless in a town.how would you be paid.a vending macine would ne a better bet

Ya it would be time consuming alright,we would have to start deliveries bout 4 or 5am,
I was thinking maybe use a direct debit system for people to pay each month in advance.

kowtow

yosemitesam1 wrote:

A lot of it could be done reasonably cheap compared to loading on more cows. 5k would go a very long way towards bottling machine, pasteuriser etc. You wouldn't necessarily be targeting the bottom of the market also...

You'll get a 200 litre batch pasteurizer 2nd hand for less than 10k... we have one here and prefer it. But you'll be limited in how much you can bottle in a morning with that. Cleaning etc. As per milk plant.. and you'll need to build a food standard processing room around it but otherwise nothing too complex.

You might be surprised how much packaging (or bottles) cost!

And check that the creamery is ok with taking the balance. I know some MSA s would exclude it.

Henwin

whelan2 wrote: »

I think you need to do something different. A new or niche idea

I was thinking that too, I remember when I was in primary school back in the day, a local milk supplier used to deliver small cartons of milk to the children, paid for in advance. That doesn't happen anywhere that I know of anymore. Id say a lot of children take fruit sqashes as their drink to school which are full of sugar, not many take milk which wud be far healthier,
The only problem is the set up costs, the packaging and setting up a payment plan. But I love the idea.

Henwin

kowtow wrote: »

You'll get a 200 litre batch pasteurizer 2nd hand for less than 10k... we have one here and prefer it. But you'll be limited in how much you can bottle in a morning with that. Cleaning etc. As per milk plant.. and you'll need to build a food standard processing room around it but otherwise nothing too complex.

You might be surprised how much packaging (or bottles) cost!

And check that the creamery is ok with taking the balance. I know some MSA s would exclude it.

Great advice , thanks

Henwin

GrasstoMilk wrote: »

These guys aren't far from me. At it about 4 years now. You'd want to be putting 500l a day Out though it i reckon
https://m.independent.ie/business/farming/dairy/dairy-farm-profiles/theres-a-big-difference-between-30cl-and-1l-farmer-on-selling-his-milk-direct-to-the-marketplace-36697218.html

Those set up costs are a real eye opener, and the work involved would be intensive. A lot of homework to be done before we make a decision, thanks for the reply

charolais0153

Henwin wrote: »

I was thinking that too, I remember when I was in primary school back in the day, a local milk supplier used to deliver small cartons of milk to the children, paid for in advance. That doesn't happen anywhere that I know of anymore. Id say a lot of children take fruit sqashes as their drink to school which are full of sugar, not many take milk which wud be far healthier,
The only problem is the set up costs, the packaging and setting up a payment plan. But I love the idea.

Theirs a reason....milk tastes like **** out of small plastic bottles and it would go warm. This is coming from a person that drinks 2 litres of miln a day

Henwin

charolais0153 wrote: »

Theirs a reason....milk tastes like **** out of small plastic bottles and it would go warm. This is coming from a person that drinks 2 litres of miln a day

What about cardboard cartons? If it's in a refrigerated van and delivered an hour before lunch tat shud be fine I think