Milk price drop!

Location
southwest
is your milk contract linked to the spot price? should you not be looking to get on a cop contract to avoid the fluctuations?


Do you mean spot price or market price?

Spot price is just what processors are willing to pay or receive on a daily basis if they are short/over what they need in the very short term. Some processors will bottle milk on a Sunday because the spot price on the day more than cancels out the extra wage costs for Sunday staff.

What worries me most about this thread is how little farmers really know about how their product is priced/valued.

Processors just need to trot out a few standard phrases -world price falling, cream market oversupplied, spot market under pressure-- and farmers seem to accept without challenging.
 
Do you mean spot price or market price?

Spot price is just what processors are willing to pay or receive on a daily basis if they are short/over what they need in the very short term. Some processors will bottle milk on a Sunday because the spot price on the day more than cancels out the extra wage costs for Sunday staff.

What worries me most about this thread is how little farmers really know about how their product is priced/valued.

Processors just need to trot out a few standard phrases -world price falling, cream market oversupplied, spot market under pressure-- and farmers seem to accept without challenging.
From somebody who's paid to Know/make an educated guess.
"It's not looking very bright,with SMP intervention based via tender this yr,the floor in the price simply won't be there.If production is big the impact will be stark.Friesland Campina announced this week 2017 actual volumes produced per month will be their base for 2018 any excess litres produced above this base will receive a 90% reduction in P/L. This is a drastic departure for a major EU co op to introduce such a scheme. Latest Muller UK futures offer also priced at just 22p.If supply can be controlled then pricing might not be too bad.If it goes overboard the outlook is stark."
"European markets have become detached from the GDT over the past yr. The overhang of SMP isn't helping nor Hogans threats of late."
supply amd demand simples
 

Fergieman

Member
Mixed Farmer
Location
Northumberland
There is very few talking of demo's here, If fact reading back through the posts only one post says we directly need protests and I think it was a tongue in cheek post about FFA
 

Clay52

Member
Location
Outer Space
They haven't but what the farmers are getting has!

Dropped something like from £240t a year ago to £100t today apparently.

Like milk, when the price crashed 18 months ago the price of milk in the supermarkets didn't drop a penny.

If it’s like here the supermarket milk is on long term contracts so the supermarket prices won’t change much.
 
Location
Devon
Yes but the rest of the milk is bought on long term contracts between the supermarkets and processors.

But the milk for these contracts was mostly bought at low prices due to the farmgate price collapse?

Or are you saying that all the milk that was used for supermarket milk didn't suffer farmgate price cuts 18 months ago?
 
Tags
milk

SFI - What % were you taking out of production?

  • 0 %

    Votes: 78 42.9%
  • Up to 25%

    Votes: 63 34.6%
  • 25-50%

    Votes: 30 16.5%
  • 50-75%

    Votes: 3 1.6%
  • 75-100%

    Votes: 3 1.6%
  • 100% I’ve had enough of farming!

    Votes: 5 2.7%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,286
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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