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Thread: NI milk price

  1. #1
    causeway cowboy
    Guest

    NI milk price

    Will the protests/milk price across the water affect uniteds milk auction this week?

  2. #2
    Pearsonni
    Guest

    Re: NI milk price

    Quote Originally Posted by causeway cowboy View Post
    Will the protests/milk price across the water affect uniteds milk auction this week?
    v
    No fane vally paid 25p this month and lakeland nearly paid 25p base was 20.8 with united . Its a joke things are very quiet

  3. #3
    Accidental_Farmer
    Guest

    Re: NI milk price

    Probably wont have any/much effect.

    Interesting to hear Dobbin commenting saying the price will go up at the next auction. He usually doesn't comment before an auction I wonder if this was to get farmers onside so United/Dale Farm dont have the same protests to deal with. So we may get a slight rise but if so fractions of a penny

  4. #4
    514
    Guest

    Re: NI milk price

    Quote Originally Posted by Pearsonni View Post
    v
    No fane vally paid 25p this month and lakeland nearly paid 25p base was 20.8 with united . Its a joke things are very quiet
    It would need to be rising, 20.8 doesn't cover the bills never mind provide a return for ourselves. Its a disgrace to see "farmer" owned coops fracturing the market further instead of working together for a better future.

  5. #5
    Accidental_Farmer
    Guest

    Re: NI milk price

    Quote Originally Posted by 514 View Post
    It would need to be rising, 20.8 doesn't cover the bills never mind provide a return for ourselves. Its a disgrace to see "farmer" owned coops fracturing the market further instead of working together for a better future.
    In my opinion your asking the wrong question you need to flip the situtation.

    Why have these co-ops been put in a position where they feel they have no other option but to go it alone?

    Reading between the lines and what has and hasn't been said I get the impression a lack of co operation from Uniteds side towards these co-ops is to blame.

    It is in ALL the FARMERS interests for UNITED to work with all the processors and to maintain good relations. It is my impression that this is not the case. Going my the way in which the way United has been run I dont think the people at the top are one bit interested in dealing with anyone outside United and Dale Farm.

  6. #6
    DairyFarmer111
    Guest

    Re: NI milk price

    The United auction has, for years, been manipulated by the other buyers to fill up their processing capacity for the winter, while sitting back to let the spring price hit the bottom before bothering to buy. The profit from this cheap spring milk was then used to give their own suppliers an artificially better price, inevitably at the expense of United suppliers. Which part of that sounds fair?

    The steps United have recently taken to curb this abuse of the system has probably not gone down well, but for too long the board had tried not to rock the boat. But with the departure of Ballyrashane from the status quo, they probably thought it was time to straighten a few issues out.

    I think that the days of the auction are numbered, and every company will have to stand up on its own. Recent history both here and over the water shows that small companies are swallowed up, and I'd even suggest that United would need to be merging at some stage to increase its standing in the big league. Look where division has got the English farmers!

    At the same time, I think too much has been made of the effects of the moves made by the smaller co-ops. The much talked about fivemiletown uses only 2% of NI milk. And is it really a big deal if ballyrashane sources all their milk direct, as this is less milk to sell at the auction? And perhaps when United no longer needs to protect ballyrashane as one of its auction customers, there could be some stiff tendering for liquid contracts? You can't really assume that ballyrashane has the sole right to Hendersons contract, can you?

    I'd say Ballyrashane are now much more exposed than United.

  7. #7
    Accidental_Farmer
    Guest

    Re: NI milk price

    I take it you are referring to one buyer being given 15 months notice that they are no longer welcome at the auction due to not buying at every auction but only when it suits, even though this effectively reduces what the farmer gets?

    I think anyone would be mistaken to think United in some way protect Ballyrashane at any level. Ballyrashane are completely independent from United unfortunitely the same can not be said of the biggest buyer at the auction.

    Ballyrashane have no devine right to any milk contracts, I am sure they tender like everyother processor for the business they have(I am sure there already is stiff tendering for liquid contracts) ... However if someone like a Dale Farm was to undercut to take business away who would take the hit/suffer as a result....the farmer and no one else!

    Ballyrashane's exposer will be no greater and no less....

  8. #8
    DairyFarmer111
    Guest

    Re: NI milk price

    I have heard it said many times that the margins in liquid are just stupid.

    I have no idea what attitude Dale Farm takes to liquid tendering - only suggesting that in the past it would not have been in United's interest to have Dale Farm compete unduly harshly against a co-operating partner in the auction system when it came to liquid tendering. Fair enough, 'protect' wasn't the best word. Its a bit of a shame that it has come to this. But then, its just business. A good relationship with Fane Valley prevails as far as I know.

    I was referring to the new levy system that will be used to encourage fairer buying practices at the auction.

    United suppliers have got very little out of the auction in my opinion, and its demise should allow United to pay out what they really make from the milk Dale Farm processes. It has taken a long time to get there, with some distance still to go, but the board acted with a cautious approach to debt, and the business is fairly resilient as a result.

    RE protests

    Who would protest in this way against United and why? Dale Farm is the strongest bidder at the auctions. What good would not allowing lorries to collect milk do?

  9. #9
    causeway cowboy
    Guest

    Re: NI milk price

    From my reading of another thread on here our brothers cross the pond should be getting somewhere between 27ppl and 30ppl when the supermarkets pay up. So is our 24ppl not a bit light on it?


    As for united and other companys not bidding against each other for contracts everyone knows that this went on with a gentlemans agreement.


    Apparently ballyrashane has put its drivers on notice that half of them will have to go at the start of the year.

  10. #10
    scoobyscotlad
    Guest

    Re: NI milk price

    Don`t make the same mistake as the consumers will.
    27-30p will only be paid to approx 12-15% who are on alligned direct contracts.
    High 24p`s for most others.

  11. #11
    causeway cowboy
    Guest

    Re: NI milk price

    o right! What are you's getting now?

  12. #12
    jerseycowsman
    Guest

    Re: NI milk price

    I CAN'T BELEIVE ANY OF YOU IN NI ARE THINKING OF LEAVING YOUR LARGE COOPERATIVE AND FALLING FOR THE MYHTICAL EXTRA PENNY THAT THESE OTHER SO CALLED COOPS AND DAIRIES ARE OFFERING.
    HAVEN'T YOU LEARNT ANYHTING FROM WHAT HAS HAPPENED IN THE REST OF THE UK OVER THE LAST 20 YEARS?

  13. #13
    jamj
    Guest

    Re: NI milk price

    Quote Originally Posted by jerseycowsman View Post
    I CAN'T BELEIVE ANY OF YOU IN NI ARE THINKING OF LEAVING YOUR LARGE COOPERATIVE AND FALLING FOR THE MYHTICAL EXTRA PENNY THAT THESE OTHER SO CALLED COOPS AND DAIRIES ARE OFFERING.
    HAVEN'T YOU LEARNT ANYHTING FROM WHAT HAS HAPPENED IN THE REST OF THE UK OVER THE LAST 20 YEARS?
    A true coop would be owned by farmers and run by farmers, taking a sensible wage. United is 'owned' by farmers but those that run it seem more interested in themselves than the owners.

  14. #14
    DairyFarmer111
    Guest

    Re: NI milk price

    For the brothers and sisters across the water,

    United has long been the subject of ridicule, because it paid the lowest price in northern ireland for many years. There were several reasons for that in addition to those stated above. Several all-island processors paid a premium to the northern producers they were trying to recruit over their southern suppliers - just enough to keep them ahead of United and attract the disillusioned. Radical changes have taken place though, and one by one the smaller ones have been swallowed up. Another reason is that United was the only milk buyer with virtually no processing capacity post deregulation, hence the auction system. It has taken a lot of careful work to build up their processing to the most of a billion litres in two years time. No money was requested from farmers - it was paid for out of the business, which obviously had to have a negative effect on the price they could pay to the farmer. But essential work nonetheless.

    Many farmers have left for that penny, and cruelly, mostly the large ones were targeted in recent years, leaving United with the higher transport costs of smaller farms. The good news is though that, taking an annual average, there is very little different in the price paid across the main companies these days, even though the southern processors are still offering that premium in the north. Whether that will continue when the south turns the tap on in two years time is another matter.

  15. #15
    514
    Guest

    Re: NI milk price

    Is anyone willing to take a shot at what the auction price will be?
    Re some of the other comments

    I can't see how its unfortunate that the biggest buyer at the auctions is close to United, especially if they're consistently above the average price.
    If united weren't interested in dealing with others there would have been a much more producer producer friendly arrangement years ago, changes to the selling arrangements always needed to keep the processors on board so the risk fell to the farmer, particularily on a falling market.

    It's no coincidence that the other buyers tend to give their best premiums on a falling market, when its easiest to sign New producers particularly as until 2009 they could force the auction price down very fast.
    I also think the moves by other coops to sign direct supplies has more to do with the increased capacity of Dale Farm than changes in the auction, are they worried they won't be able to compete?

  16. #16
    514
    Guest

    Re: NI milk price

    United's auction price was 25.04p for 38 million litres, up from 22.98 for 47m litres last month.

  17. #17
    causeway cowboy
    Guest

    Re: NI milk price

    Its good to see it move up. Will it only be a one off?


    What is uniteds processing capacity?

  18. #18
    DairyFarmer111
    Guest

    Re: NI milk price

    I don't know exact figures, but the most recent 39 million investment programme is mostly complete. The founds are there now in the cheese, and the doubling of capacity will be relatively cheap to do. Securing the market share is the focus of attention I believe.

  19. #19
    514
    Guest

    Re: NI milk price

    Quote Originally Posted by 514 View Post
    United's auction price was 25.04p for 38 million litres, up from 22.98 for 47m litres last month.
    Todays auction was 26.22ppl for 36 million litres, less of an increase than many expected.

  20. #20
    Accidental_Farmer
    Guest

    Re: NI milk price

    32.46 today auctions need every penny

    price fresan bull calves at market not good

  21. #21
    Accidental_Farmer
    Guest

    Re: NI milk price

    First auction this year that is higher a than last year?

  22. #22
    Joules
    Guest

    Re: NI milk price

    Quote Originally Posted by Accidental_Farmer View Post
    32.46 today auctions need every penny
    that is very good news

  23. #23
    514
    Guest

    Re: NI milk price

    It's wonderful what a drop in supply can do

  24. #24
    BigW
    Guest

    Re: NI milk price

    Hopefully the price keeps on rising!

  25. #25
    causeway cowboy
    Guest

    Re: NI milk price

    Aye good to see it going right way but as 514 says tight supplies have as much to do with it as anything.







    Or maybe its the FFA protest demanding 40ppl!

  26. #26
    Accidental_Farmer
    Guest

    Re: NI milk price

    [/QUOTE]
    Or maybe its the FFA protest demanding 40ppl![/QUOTE]

    If only it was that easy

  27. #27
    iron150
    Guest

    Re: NI milk price

    A base price of 40ppl, really? Is that not a bit gready?



    Or maybe its the FFA protest demanding 40ppl![/QUOTE]

    If only it was that easy[/QUOTE]

  28. #28
    causeway cowboy
    Guest

    Re: NI milk price

    Quote Originally Posted by iron150 View Post
    A base price of 40ppl, really? Is that not a bit gready?




    Or maybe its the FFA protest demanding 40ppl!
    If only it was that easy[/QUOTE][/QUOTE]


    Yeah but FFA says that what we need! At the same time as telling us not to export although our market is based on export!

  29. #29
    pellow
    Guest

    Re: NI milk price

    if the milk price gets anywhere near 40p the supply will go up sharply

  30. #30
    Shep
    Guest

    Re: NI milk price

    Quote Originally Posted by iron150 View Post
    A base price of 40ppl, really? Is that not a bit gready?




    Or maybe its the FFA protest demanding 40ppl!
    If only it was that easy[/QUOTE][/QUOTE

    If it ever does, can I have whatever you don't want?

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