Glanbia dairy cessation scheme

tanko

Is this an early April fools day joke or is there any truth to it?
Glanbia are going to pay suppliers €15,000 a year for five years to stop milking. These farmers can change to other types of farming but can't supply milk to another coop.
Younger suppliers will have to pay a €400/year levy to fund this.
This seems to good to be true for smaller suppliers nearing retirement, will many farmers go for it?

Birdnuts

tanko wrote: »

Is this an early April fools day joke or is there any truth to it?
Glanbia are going to pay suppliers €15,000 a year for five years to stop milking. These farmers can change to other types of farming but can't supply milk to another coop.
Younger suppliers will have to pay a €400/year levy to fund this.
This seems to good to be true for smaller suppliers nearing retirement, will many farmers go for it?

Sounds like a return of quotas via the back door - could put a right chill threw the ongoing frenzy of expansion in terms of dairy stock prices, land rental etc.

richie123

tanko wrote: »

Is this an early April fools day joke or is there any truth to it?
Glanbia are going to pay suppliers €15,000 a year for five years to stop milking. These farmers can change to other types of farming but can't supply milk to another coop.
Younger suppliers will have to pay a €400/year levy to fund this.
This seems to good to be true for smaller suppliers nearing retirement, will many farmers go for it?

Where you hear about this ?

tanko

A Glanbia supplier neighbour told me about it earlier today, he read it in the journal. He wouldn't have to be asked twice if it's true.

Pinsnbushings

It's true from what I can gather from glanbia.. it's not standard payment ie x cents per litre on your reference litres supplied in 18,19,20. It will have to be considered at home anyway, if my calculations are right 8500 per year for 5 years for a 250000litre a year supplier..not sure if it's being paid above that.
To be funded by a levy on all milk supplied in ROI of .075 cents per litre..as has been the case for years glanbia want rid of all the small lads to allow the white gold Rush continue..the increase from 250litre to 400 litre minimum collection last year was another one..

Pinsnbushings

tanko wrote: »

Is this an early April fools day joke or is there any truth to it?
Glanbia are going to pay suppliers €15,000 a year for five years to stop milking. These farmers can change to other types of farming but can't supply milk to another coop.
Younger suppliers will have to pay a €400/year levy to fund this.
This seems to good to be true for smaller suppliers nearing retirement, will many farmers go for it?

The milking facilities can't be used to supply milk either, so can't be leased to another farmer to milk, not sure how that will work in practice..not sure what the case wuld be if you sold the farm either?

Mooooo

Pinsnbushings wrote: »

The milking facilities can't be used to supply milk either, so can't be leased to another farmer to milk, not sure how that will work in practice..not sure what the case wuld be if you sold the farm either?

Legally that already sounds dodgy. They are you're assets at end of the day and if you lease them to someone else for a return what business is it of theirs once you arent supplying

Say my name

Pippa Hackett, Luke Ming and Matt Carthy must love this scheme since they don't like dairy farmers.

No wait, is it only Big Dairy farmers they don't like?

Ah who knows.

Fill the lorry in the one yard. Put the Romanians in the mobile home.

Finty Lemon

Say my name wrote: »

Pippa Hackett, Luke Ming and Matt Carthy must love this scheme since they don't like dairy farmers.

No wait, is it only Big Dairy farmers they don't like?

Ah who knows.

Fill the lorry in the one yard. Put the Romanians in the mobile home.

At least two out of that trio wouldn't be too fond of successful farmers. Their entire Agri-policy is just a dole scheme of another name.

trg

Will it have an affect on new entrants I wonder?

Say my name

Finty Lemon wrote: »

At least two out of that trio wouldn't be too fond of successful farmers. Their entire Agri-policy is just a dole scheme of another name.

If it's the latter two. Dairy farmers are the cause of the total country's carbon emissions and must be abolished.

Anyway on scheme. If anyone was thinking of retiring or their milk lorry drivers are throwing horrid looks for being so small then then it's a positive.

tanko

Not all dairy farmers are young and hungry, plenty of lads out there whose knees and hips have seen better days who will jump at this scheme if there's decent money on offer.

ruwithme

I like the "white gold rush" line pinsnbushings. Can't imagine much appetite for it round here. A young & hungry dairy farmer is taking 23 acres locally for 1st cut silage only,not slurried or bagged,for €100 a acre.

Average land for cavan.

ruwithme

tanko wrote: »

Not all dairy farmers are young and hungry, plenty of lads out there whose knees and hips have seen better days who will jump at this scheme if there's decent money on offer.

Maybe a case of get out before the bust hey??

Grueller

ruwithme wrote: »

I like the "white gold rush" line pinsnbushings. Can't imagine much appetite for it round here. A young & hungry dairy farmer is taking 23 acres locally for 1st cut silage only,not slurried or bagged,for €100 a acre.

Average land for cavan.

That makes €200- 250 around here. Land making €450/ac with beef men giving it.

Pinsnbushings

trg wrote: »

Will it have an affect on new entrants I wonder?

The only thing I heard was new entrants will have to be glanbia coop members, recent new entrants last 3 years I think will be allowed to expand up to 550000 litres with out penalties..which I feel is very unfair on existing suppliers like myself who either hadn't the options or weren't in a position to expand, and if we got the chance now can only grow by 5 percent..yet a guy starting this year with glanbia can work away up to the 550000 litres..why were they taking on new entrants with doubts over the new plant..? Or allowing unlimited expansion for huge herds? I'd say big herds but I know say my name will get on to me..ha
By the way I have nothing against guys getting into milk but I do feel that's a little unfair.

Donald Trump

Pinsnbushings wrote: »

The only thing I heard was new entrants will have to be glanbia coop members, recent new entrants last 3 years I think will be allowed to expand up to 550000 litres with out penalties..which I feel is very unfair on existing suppliers like myself who either hadn't the options or weren't in a position to expand, and if we got the chance now can only grow by 5 percent..yet a guy starting this year with glanbia can work away up to the 550000 litres..why were they taking on new entrants with doubts over the new plant..? Or allowing unlimited expansion for huge herds? I'd say big herds but I know say my name will get on to me..ha
By the way I have nothing against guys getting into milk but I do feel that's a little unfair.

Same thing happened in the 80's.


They established a quota of only about 16k gallon here and were stuck with that for a long time until they could build it up slowly over time by buying more in dribs and drabs.



Neighbour was on the ball and had the resources available and he jumped on the bandwagon as a new entrant when the quotas were flagged. I think he got 40k gallon quota straight off the bat which he would never have filled. He only stuck at it a few years and then sold out when there was some scheme that if you gave up, you got paid your money for 3 years.

Pinsnbushings

ruwithme wrote: »

I like the "white gold rush" line pinsnbushings. Can't imagine much appetite for it round here. A young & hungry dairy farmer is taking 23 acres locally for 1st cut silage only,not slurried or bagged,for €100 a acre.

Average land for cavan.

Plenty of appetite alright, being honest if my land wasn't so fragmented I'd be at home milking full time too.. as grueller says that would be cheap down this way..land rent is crazy and any land for sale tends to be bought by non farming money of various types.

Donald Trump

Grueller wrote: »

That makes €200- 250 around here. Land making €450/ac with beef men giving it.

Is that 450 figure including the value of entitlements rented along with the acres?


There is absolutely no way anyone could be financially justifying 450 an acre for feeding beef.

Grueller

Donald Trump wrote: »

Is that 450 figure including the value of entitlements rented along with the acres?


There is absolutely no way anyone could be financially justifying 450 an acre for feeding beef.

No. Entitlements going back to the owner.

whelan2

Why are farmers being asked to fund this? Millions of euros worth of shares sold in the joint venture a few years ago. Where's that gone? Always the farmer who funds it..

whelan2

Details of this scheme
4cpl on first 100000 litres
3cpl on next 100000 litres 2cpl on the rest up to a maximum of €15000 per annum over 5 years
Based on entire year supply

To get the max you'd need to be retiring with 600000 litres
I wonder what age can you retire at?

kevthegaff

whelan2 wrote: »

Details of this scheme
4cpl on first 100000 litres
3cpl on next 100000 litres 2cpl on the rest up to a maximum of €15000 per annum over 5 years
Based on entire year supply

To get the max you'd need to be retiring with 600000 litres
I wonder what age can you retire at?

Can you retire at 38..

Donald Trump

When they say 5% per year, when does that start?

If the reference years are 18/19/20 and the restrictions start in 2022, is that then 5% or 10% for that year given two years would have passed (well technically 10.25%)


Actually, if you want to get really pedantic, if you had been increasing by 5% year-on-year starting from 2018, then you'd be on schedule to produce 15.67% more in 2022 than you did from your average calculated during 18,19,20