EU milk reduction scheme

Sid

Member
Livestock Farmer
Location
South Molton
Yes. My understanding is it isn't the same in some other countries, where their governments are topping up the fund and even paying more per litre.

So if you commit 100k @12ppl and it over supplied and reduced by half. You get 100k @ 6ppl.
Wonder what differnet farmers breakeven for pulling out of the scheme is? I wonder how many have even worked it out!
 

The Agrarian

Member
Mixed Farmer
Location
Northern Ireland
Having to sustain the reduction for more than three months without being paid for it would put many people off.

Some figures.
Total EU production is 149 billion lt last year (to March 2016)

Max total vol to be allowed in reduction scheme is only 1.04 billion, or about 0.67%.

Only if all that reduction occurs over three months, will it be noticeable.

If as some have suggested , one in 6 in UK have applied, that could be around 1900 producers.
UK share of EU production is about 10%, so 100,000,000 lt could be our share of the cut.

Thats only 55,000 lt per application.Not so much.

Small correction to a number there. UK dairy holdings must number in the region of 13600, but it's tricky actually finding the up to date figure due to the silly fractured way the data are compiled in the regions. I could only find 2014, which was 13800.

So it's more like 2260-2270 producers than 1900 for one sixth.
 
Don't think they know how may producers are in the county either, as for the 1 in 6 signing up what could just be a pure guess. They will do well to tell us within 7 days the details.
 

The Agrarian

Member
Mixed Farmer
Location
Northern Ireland
If farms under heavy pressure take it, it may actually be the finish of them if they reduce stock numbers in the process. Less earning power going forward. Less stock to call up for sale at a future date. Bank might take the money and close shop.

Which would actually be a healthy thing in the long run. The industry doesn't need lots of farms on life support, limping onward, continuing to dampen the market.
 

Steevo

Member
Location
Gloucestershire
So if you commit 100k @12ppl and it over supplied and reduced by half. You get 100k @ 6ppl.
Wonder what differnet farmers breakeven for pulling out of the scheme is? I wonder how many have even worked it out!

So if the 1st quarter is over subscribed, it drops to 5p as you suggest, and then half pull out, do the other half only get 6p? And the remaining money rolls onto the next period? Which may or may not be oversubscribed so they may get 12p, 6p or something completely different. Yes?
 

dinderleat

Member
Location
Wells
112 mill litres applied for in the uk and a total of 1800 farmers. I think this will drive prices up further with just the fact processors will be worried about supply
 

Happy at it

Member
Location
NI
It's a bit of a hash of a scheme, when you think that it's a few days away from the start of the October, with no confirmation that the applications have even been received. Just doesn't help you to make decisions and prepare accordingly.
 

peclova

Member
It's a bit of a hash of a scheme, when you think that it's a few days away from the start of the October, with no confirmation that the applications have even been received. Just doesn't help you to make decisions and prepare accordingly.



Err........ who's running the scheme?

OH NO! It's the RPA.

With a bit of luck you might hear some excuses around the end of the year.
 

dinderleat

Member
Location
Wells
It's a bit of a hash of a scheme, when you think that it's a few days away from the start of the October, with no confirmation that the applications have even been received. Just doesn't help you to make decisions and prepare accordingly.

Personally I wouldn't make business decisions based on this eu scheme I would only take it as a bonus if I were under production, which I'm not so I didn't apply.
 

Manney

Member
Livestock Farmer
Location
Penzance
112 mill litres applied for in the uk and a total of 1800 farmers. I think this will drive prices up further with just the fact processors will be worried about supply


Ok so 112,000,000 litres divided by 1800 farmers = 62,222 litres each.

62,222 x 12ppl = £7466

So if my maths is right the average payment to the farmers will be £7466. Dont think anyone is going to get rich on this scheme.

Please correct me if I have got it wrong!
 

The Agrarian

Member
Mixed Farmer
Location
Northern Ireland
112M litres ÷ 90 days = 1.244M/day. Which is 3.5%. And with the best will in the world, it's not going to turn out as much as that when it's said and done.

Scaling it up across the EU at the same rate, the scheme therefore could have the potential to take 0.63% off global production during the three months.
 

Jonsnow

Member
Location
West Wales
112M litres ÷ 90 days = 1.244M/day. Which is 3.5%. And with the best will in the world, it's not going to turn out as much as that when it's said and done.

Scaling it up across the EU at the same rate, the scheme therefore could have the potential to take 0.63% off global production during the three months.

The country is already far more than 1.2m litres a day down from last year, the vast majority of the subscribed volume will come from that, so there won't be a further reduction of 1.2 million litres. There will be a drop in Autumn/Winter litres yes, but because of rubbish weather and average to poor silages on a lot of farms.
 
The country is already far more than 1.2m litres a day down from last year, the vast majority of the subscribed volume will come from that, so there won't be a further reduction of 1.2 million litres. There will be a drop in Autumn/Winter litres yes, but because of rubbish weather and average to poor silages on a lot of farms.
i thought it waz only us had a sh!t summer here in ni. always wet in the north west ,dry in yhe south east according to the weather man
 

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