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Milk prices

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  • #1016888

     
    anonymous
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    Story from fwi news today.
    http://www.fwi.co.uk/article.asp?con=10266&sec=17&hier=17

    A few years ago there was a big fuss we were only getting about a penny above the IMPE, these days the actual amount we get(ie not the headline price, which doesn’t reflect all the deductions) is about 3 or 4 pence below IMPE.
    Something seriously wrong somewhere.
    IMPE is supposed to be a minimum isn’t it?
    The EU target price is now equal to 22 pence – so why are we on about 16 – less seasonality of course…

    #1016889

     
    anonymous
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    i know what you mean ringo someone cant add up correctly the all anounce the prices they say we should be getting with the £=e when will they get it right ?? or will we ever get what they say we will who`s going to make a stand i see the NFU say what we should be getting but what are they doing to get it for us ??/

  • #1016890

     
    anonymous
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    "Following this rationale, the weakening value of the pound must lead to a significant price rise for producers."

    Apparently not!

    Don’t be expecting a price rise, lads & lasses, just be grateful it didn’t fall!

    It seems that the "market" calls the shots when it comes to the base for prices, and they won’t be coerced into paying more than they have to.
    Was the IMPE not written into the "supermarket code of practice" thing? – although they take not a bit of notice of that either!

    #1016891

     
    anonymous
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    Just follow the United Milk price to find out what IMPE is worth. They pay IMPE less 0.5ppl each month, based purely on £/euro rates in the month.
    No stability in the price, and no idea for forward pricing, but April was 18.3ppl, and hopefully May might be nearer 19.
    Problem will be when the euro gets weak again and the price falls to 15ppl again.

    #1016892

     
    anonymous
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    Grateful to who? The supermarkets only increased the price (over the dairies heads) last autumn to prevent a ‘mass exodus’ resulting in tightening supplies, dearer milk and a public relations disaster. So the ‘market’ was really prevented from acting freely. The last thing I would like to see is anybody forced out, just saying that with the way we are, we are entirely dependant on what they decide to give us. This is always going to be the bare minimum they can get away with. Until that is, we stand up together and just not sell them the milk unless it’s at our price. It worked before, until we gave them the whip hand.

    #1016893

     
    anonymous
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    The public relations fiasco I think you’re talking of (2p extra for milk) was not a disaster for the supermarkets. They got their publicity, and as far as Joe Public is concerned – the farmer got his share, and he wouldn’t believe it if us "whinging farmers" said otherwise.
    The gist of every buyer is "we’ve done our best" and I’m positive they do, in the current circumstances, only it’s a sorry state of affairs that the rising value of the euro just means the price didn’t fall – I talk/write "tongue in cheek" most of the time and am not in allegiance with the "can’t do anything about it/accept your lot" brigade, – so tell me, how do we go back to the "good old days", when we stood united, we ALL hark back there, or is it with rose-tinted glasses?

    #1016894

     
    anonymous
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    I was trying to say that not increasing the price would have been a disaster for the supermarkets, they actually handled the situation brilliantly. The gist of every buyer may be "we have done our best", true of our terribly week co-ops, perhaps true of some dairies. But the big dairies used the Euro excuse while they drove the price down and down since about 96. The Euro has finally regained some value against the Pound (back upto the end of 98 values), but milk hasn’t. The only price rises we have seen was the rise when the media spotlight was on us during F&M and again last autumn, both were supermarkets (and Blair in F&M) acting in their own interests, nothing to do with our marketing skills.
    How do we get back to standing united? Well you’ve got me there, I can’t make direct suppliers stand united, it’s upto them. It looks like the only way forward is for co-ops to buy processing capacity like United Milk has.

    #1016895

     
    anonymous
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    I emailed our buyer, making similar points to the first post here; this is their reply.
    In a nutshell, it’s all my fault, I should spend a few hundred quid blitzing the cell count, so I could gain 0.3 pence. Then I could change to a flat rate payment; oh, that might not be any good.
    Doesn’t look like much chance of the 4p we need to start making any profit, never mind the 6p to get near the EU target price does there.

    [b]Thank you for your e-mail.

    You raise a very topical question with IMPE. The recent rise in the value of IMPE is due to the strength of the Euro and this will be a key factor in our sales negotiations for the second quarter. One of the main reasons we are moving to quarterly price negotiations is so that we can capture any up turns in the market.

    However the value of IMPE has the biggest impact on milk sold into commodity markets i.e butter and skim milk powder and the volume we supply to these markets in total (including commodity cheese) is only around 18%. Our focus is increasingly on liquid milk and premium manufacturing markets as they return a higher price. Therefore whilst we will certainly be pushing hard for an increase on the back of IMPE it is not as crucial as it once was.

    Now that we have the figures I have looked at your April price which is 15.898ppl before transport. You qualify for all the bonuses with the exception of SCC where there is a potential for a further 0.3ppl. The key factor for this month is your compositional which is relatively low and on the compositional contract generates a price approx. 1ppl lower than the ‘standard litre’ quoted in the league tables of 4.1% butterfat and 3.25% protein.

    It would therefore appear that for April you would be better off on a liquid contract, which pays a flat rate of 15.98ppl before bonuses. However it is an annual contract and looking back over previous months your compositional quality is significantly higher and therefore if this year follows the same pattern you are likely to be better off on the compositional contract.

    You asked about your price for June. It is our intention to hold the current price up to and including June and therefore your end price will depend on quality. Whilst it is not possible to swap contract types for the current milk year, if you wish to review this for the future I know ******(withheld by me), your area manager, would be more than happy to discuss this with you.

    If you need any further information, please do not hesitate to contact me. [/b]

    #1016896

     
    anonymous
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    IMPE is a guide set by the E.U. As most U.K. farmers vehemently oppose the concept of a European Union I find it contrary that IMPE should be used as a reason for an increase in the U.K. milk price.

    European farmers have historically received a better milk price than U.K. farmers maybe this is due to their willingness to work together, something U.K. farmers seem unable to do preferring instead to work and negotiate as individuals, that is fine if that is what they want to do, but I do wish they would stop complaining when their chosen path doesn’t give them the desired result.

    #1016897

     
    anonymous
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    Ringo,
    Instead of wasting your time e.mailing Dairy Farmers of Britain why don’t you swallow your pride and principals and start running a business ??
    I now supply direct and am proud to do so !
    I backed the no hopers for too long. I could not trust them.
    Surely it is time to either put up or shut up. If you are going to continue to bankroll these parasites to set up one company after another with luctative directorships and big payoffs when they’ve failed fair enough but stop wingeing in public. I had the sense to jump ship so did Chris Bird don’t know is Stern still there probably not.I had my first cheque off my new buyer this month and it was easy to read not only do I get more for my litres but I don’t have to phone the accountant to work out how much they’ve pinched off me in one guise or another.Capital retention for your future ? BOLL+++S their retirement fund more like.

    #1016898

     
    anonymous
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    JB (and other Direct Suppliers)

    I have no experience of direct supplying of milk and so I hope you will reply to my questioning.
    Did you have any previous experience of direct supplying before you transferred over? How did you truly know what you were letting yourself in for?
    You mentioned that you couldn’t trust your previous buyer. Do you really TRUST your new one?
    The direct suppliers of Nestle had their contracts unexpectantly terminated at the end of last year. Are you sure it could never happen to you?
    Surely “security” and a say in our future comes from being in larger groups/co-ops – or whatever they may be called. You seem to be at the mercy of these processors. Your future is surely in their hands and what THEY decide to do with it.
    What can you do if future prices don’t suit? Who will you turn to for support?
    Is price alone the only real factor in favour of direct supply? Is it sufficient reward for surrendering "your principles"?
    Please tell me how it is with you.

    #1016899

     
    anonymous
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    MC,
    Good Points !
    No I had no experience of supplying direct previously but had supplied 2 co-ops.So perhaps do not realy know what we are in for this time but do know what we got from the last co-op namely DFOB and to put it crudely we got F.All.
    They made far more from me than I ever recieved from them.I was a big believer in farmer co-operation and indeed still am.What I am not prepared to do is be shafted by a company I am supposed to part own.
    Yes Nestle had their contracts terminated but also they had the chance to be reassigned to First Milk.In my oppinion they are a lot better off than the existing FM members.At least they’ve benefited from a higher milk price for the last few years.I wish I’d had their milk price since the break up of the board.If it happens to me I will evaluate it as and when it happens.I would not go back to DFOB as it is that is for sure.I would sell the cows first rather than do that!
    Security in larger groups you say I haven’t seen it yet.
    In my oppinion we are all at the mercy of the processors and how much or indeed how little they decide to give us direct or not.
    You mention future prices and who to turn to if prices don’t suit. I have two options work for nothing or get out as far as I can see they are the same two as the co-op members.
    No price isn’t the only real factor in changing. I have not surrendered my principles they are why I have changed.My principles will not allow me to risk my families future bankrolling DFOB. I think they will fail!!
    I hope this adresses your points.
    JB

    #1016900

     
    anonymous
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    You direct suppliers have had a good time waiting for milk marque and it’s successors to set a price that you ‘get a bit more than.’
    Seems abit odd you seem to look forward gleefully to the day when DFOB goes bust.

    I don’t see any reason why I shouldn’t do what I can to ensure the price issue is at the forefront of the DFOB boards thinking.

    #1016901

     
    anonymous
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    No mate up until 1st April 03 I’ve been on the price Milk Marque and it’s successors set.
    I’ve now woken up perhaps you will one day.
    I won’t be gleeful the day Dfob go bust but neither will I lay awake worrying if my next milk cheque will be honoured.
    More than that it’ll be the likes of you who will be paying the creditors on top of the capital retention you’ve already handed over.Oh sorry some of that comes back in a thirteenth payment doesn’t it.How did you spend yours this year ?
    If you think you can put anything at the forefront of the boards thinking least of all your payment Good luck to you.
    Keep dreaming Buddy !!

    #1016902

     
    anonymous
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    Does anyone think the processors are taking the Co-ops for a ride – the same way they manipulated the market for Milk Marque?
    Then it was said that the processors were prepared to pay a premium, even though it was cheaper to buy from MM, just so that MM’s market power was reduced.
    Are the processors still operating a “divide and rule” scenario, where they are still prepared to pay a premium over the co-ops prices in the hope that they will weaken the co-ops plans for securing a sustainable long term future for their dairy farmers?
    Nestle now buy some of their milk from First Milk and put their policy change down to a shift in economies of scale. Surely this should be the case for all processors. They surely can’t argue now that they couldn’t possibly get the same quality/ quantity/ costs from anywhere else but from direct supply – could they?

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