Milk Price Tracker

Tim G

Member
Livestock Farmer
Calling force majeure means the product isn't there.
But if you have any milk it would have to fill that contract first.
If you gave up milk you could still be in the position of having to buy the milk.
But if the Russians blew up your dairy farm in ukraine like a terrible photo I saw this morning then you might.

It has to be out of your control that stops you honouring contract..
I'd no idea how it works, so that's a useful explanation. But (genuine question) if a feed company, for example, calls force majeure on a contract is it because there is no wheat available, or because wheat has leapt up in price?
 

som farmer

Member
Livestock Farmer
Location
somerset
I'd no idea how it works, so that's a useful explanation. But (genuine question) if a feed company, for example, calls force majeure on a contract is it because there is no wheat available, or because wheat has leapt up in price?
like ours have all been 'done' +£20 ton from tomorrow.
what they can do, and get away with, isn't the same as they would allow us, to.
I was under the impression, that with forward contracts, and group contracts, they tended to buy forward, to cover the quoted price, or at least a % of. Perhaps they thought prices would go down, in the summer, l mean, surely they wouldn't buy forward, and then tell us, force majeure would they ..................?
 

Kingofgrass

Member
@Kingofgrass fixed some I think?
Fixed some middle of last year for this year,it’s returning 33
first time we ever been the wrong side of it, unfixed price for Feb was 40.7 4.83fat 3.63 pro
They said +2p for March
Also had email other week saying expect 4-5p increase in the next few months

he’s signed a few Tescos up lately
He’s put in for planning for a digester to produce his own gas for drier (would be the biggest in the country if he gets it)
 

frederick

Member
Location
south west
I'd no idea how it works, so that's a useful explanation. But (genuine question) if a feed company, for example, calls force majeure on a contract is it because there is no wheat available, or because wheat has leapt up in price?
Now I'm no expert but I would have thought if the feed company can still supply the same product force majeure would be questionable.
But who of us actually read a feed contract and how real of a contract is it sometimes. There is probably some small print that allows for fuel increases or similar.
But sometimes it might be better to get something at an increase rather than nothing at all or returning to the open market.
 

Tim G

Member
Livestock Farmer
Still don’t understand why my blend hasn’t gone up ? Is it because they had to buy the Raw ingredients for mine at the time and perhaps they don’t for concentrate contracts ?
The mill I get my feed from said they buy in three month blocks. All the ingredients needed for the next three months are bought at a set price and they sell the feed for their set price for that three month period. Unusually, the price jumped up significantly last autumn and fixed at that level for a longer period. It looked expensive then, and looks better now (because everything else has gone up to), but they are now coming to the end of the period and I'm not looking forward to hearing how much the next periods prices will have gone up by.
 

som farmer

Member
Livestock Farmer
Location
somerset
The mill I get my feed from said they buy in three month blocks. All the ingredients needed for the next three months are bought at a set price and they sell the feed for their set price for that three month period. Unusually, the price jumped up significantly last autumn and fixed at that level for a longer period. It looked expensive then, and looks better now (because everything else has gone up to), but they are now coming to the end of the period and I'm not looking forward to hearing how much the next periods prices will have gone up by.
heard anywhere between £400 and £500, all complete guesses. A lot depends on putrid and what he decides to do, unfortunately l think its going to rumble on.
On the bright side, got 18 acres of wheat, and 12 acres of s barley, all to feed, that should help out fairly well.
 

Tim G

Member
Livestock Farmer
Not dairy feed, but I've been getting some cereal blend for our beef animals, it started at £275/ton in a bulk bag, delivered. The next 2 months it was £285, we ordered another ton last month and they said it was £310 and about to go up again. Its made from waste products!
 

som farmer

Member
Livestock Farmer
Location
somerset
400/500 for what?
cow cake, what it actually will be, is anyone's guess, and that is about all anyone can do, to many external factors, that will dictate price, and some pretty dodgy characters sat behind computer screens, playing the futures market, for every penny they can squeeze out of manipulating the mkt.
Obviously worked with oil, Biden announces he might release vast reserves, price dropped. How long before that reduction shows at the pumps.
 

Bald Rick

Moderator
Livestock Farmer
Location
Anglesey
Now I'm no expert but I would have thought if the feed company can still supply the same product force majeure would be questionable.
But who of us actually read a feed contract and how real of a contract is it sometimes. There is probably some small print that allows for fuel increases or similar.
But sometimes it might be better to get something at an increase rather than nothing at all or returning to the open market.

Had a letter from KW few days ago stating that with immediate effect contracted feed - from liquids right through to blends etc - was going up by between £5-10/tonne
Feed stuffs bought on the spot or monthly were unaffected as this rise had already been factored in

No ifs, no buts
 

easy farming

Member
Livestock Farmer
cow cake, what it actually will be, is anyone's guess, and that is about all anyone can do, to many external factors, that will dictate price, and some pretty dodgy characters sat behind computer screens, playing the futures market, for every penny they can squeeze out of manipulating the mkt.
Obviously worked with oil, Biden announces he might release vast reserves, price dropped. How long before that reduction shows at the pumps.
Marginal litres will be made to look even more expensive
 

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