Covid 19.. Milk price impact?


Don't even need to open your mouth these days. Intravenous, for that quick vit hit.
And it got marched out the den quite rightly. What the hell is wrong with people. Some really are morons. Who the hell wants an IV drip in there house? Just eat a fecking apple and drink a pint of water/milk
 
And it got marched out the den quite rightly. What the hell is wrong with people. Some really are morons. Who the hell wants an IV drip in there house? Just eat a fecking apple and drink a pint of water/milk
That’s where I saw it. F*ing ridiculous, I had to turn it off I was getting that wound in absolute disbelief that people would actually consider that, and pay a pretty penny for the privilege.
 
Location
East Mids
So are we agreed that covid 19 is having a substantial impact on the milk price? Spot prices are in free fall but contracted milk and supermarket aligned ok?
Our contracted price for A quota production has not changed, it will be about 22ppl after seasonality (which is pretty hefty at our dairy for April). However, we have all been told that up to 25% of our A quota for April may be paid at spot. Prior to this, our own forecast had us on course for almost exactly hitting our A quota. So yes, Covid will have a massive impact on our milk price!!!!!
 

som farmer

Member
Livestock Farmer
Location
somerset
And it got marched out the den quite rightly. What the hell is wrong with people. Some really are morons. Who the hell wants an IV drip in there house? Just eat a fecking apple and drink a pint of water/milk
must have been awful, for me to remember it, the positive, I did remember it, and got it right.
 

som farmer

Member
Livestock Farmer
Location
somerset
why not if going to sainsburies how do they differ?
forced a lot of their suppliers to change from muller, to their preferred buyer, Tomlinsons, who went bankrupt, M and S who had some product from them, paid those farmers, Sainsbury, not our problem, and walked away, would you want to sell to someone like that ? It is even worse, when their preferred haulage firm, went bust as well, previously both firms profitable.
 

Samherd

Member
Livestock Farmer
Location
Sussex
Milk suppliers especially larger ones think that farmers and the farming community have short memories... Fact is we don't.... And we have large networks and can tell each other things up and down the country with the power of friends, marts, and of course farming forum ?
 
forced a lot of their suppliers to change from muller, to their preferred buyer, Tomlinsons, who went bankrupt, M and S who had some product from them, paid those farmers, Sainsbury, not our problem, and walked away, would you want to sell to someone like that ? It is even worse, when their preferred haulage firm, went bust as well, previously both firms profitable.
is that in england? the guys on sainsburies in scotland are muller as far as im aware or was this a recent development?
 

Cowabunga

Member
Location
Ceredigion,Wales
Had a letter from my milk purchaser this morning warning that their customers are wanting to revise existing orders to cut their costs. "A serious situation" "We ask you to reduce your output and understand the market pressure on prices"

This sounds ominous.

Not sure whether to cut my losses now, before they happen, and send all dairy cows to slaughter, make man redundant, return rented land? Just spread fertiliser on it though. Fertiliser I've yet to pay for.
 
Had a letter from my milk purchaser this morning warning that their customers are wanting to revise existing orders to cut their costs. "A serious situation" "We ask you to reduce your output and understand the market pressure on prices"

This sounds ominous.

Not sure whether to cut my losses now, before they happen, and send all dairy cows to slaughter, make man redundant, return rented land? Just spread fertiliser on it though. Fertiliser I've yet to pay for.
I’d say you’re too late, I heard earlier in the week one barren buyer had dropped the price 28p, allthough the guy I send mine through from your part of the country said there was still demand but was expecting it to drop back.

I think you’re too committed now with land rented and fert applied plus how would you feel about making a man who may well have been with you some time redundant at this difficult time at short notice, much harder than letting him go in more normal circumstances with plenty of planning and notice.
Which only leaves reducing costs which is much easier said than done.
 

Cowabunga

Member
Location
Ceredigion,Wales
I’d say you’re too late, I heard earlier in the week one barren buyer had dropped the price 28p, allthough the guy I send mine through from your part of the country said there was still demand but was expecting it to drop back.

I think you’re too committed now with land rented and fert applied plus how would you feel about making a man who may well have been with you some time redundant at this difficult time at short notice, much harder than letting him go in more normal circumstances with plenty of planning and notice.
Which only leaves reducing costs which is much easier said than done.
I'm reducing my costs by about £35k per year, but it will take 6 months to take full effect, but even so I expect that my cashflow will be about £50k in deficit by the Autumn for my small business, even if the slump is no worse than last time. Unfortunately I expect it to be much worse.

Yet there appears to be plenty of demand for dairy products, including liquid milk. So what gives?
 

Sid

Member
Livestock Farmer
Location
South Molton
I'm reducing my costs by about £35k per year, but it will take 6 months to take full effect, but even so I expect that my cashflow will be about £50k in deficit by the Autumn for my small business, even if the slump is no worse than last time. Unfortunately I expect it to be much worse.

Yet there appears to be plenty of demand for dairy products, including liquid milk. So what gives?
Processing capacity and chain length.

You cant put milk sticks on supermarket shelf, but you could put boxes of 200 for coffees and teas.

You can't rush cheese, it takes time to mature but I expect some are pushing that ?
 

som farmer

Member
Livestock Farmer
Location
somerset
is that in england? the guys on sainsburies in scotland are muller as far as im aware or was this a recent development?
yes, in England, latter part of last year. Muller are trying to reduce the no's of their suppliers in Scotland, I think.
Basically sainsburys go for the cheapest quote, and do not bother with any business ethics, and strong rumour has it, once you have their business, they are constantly trying to reduce their costs in that dept, and once you have committed, they can pretty well do what they want, how else would 2 successful businesses go bust, so quickly ?
 
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I'm reducing my costs by about £35k per year, but it will take 6 months to take full effect, but even so I expect that my cashflow will be about £50k in deficit by the Autumn for my small business, even if the slump is no worse than last time. Unfortunately I expect it to be much worse.

Yet there appears to be plenty of demand for dairy products, including liquid milk. So what gives?
There’s the same number of consumers as before albeit suddenly buying from different outlets , I can understand that causing balancing difficulties in getting it to the right place we can but hope this is just a blip whilst the market place re adjusts allthough I can’t say I trust some milk buyers not to take advantage where they can and no doubt other milk buyers will be facing serious problems of their own losing markets practically overnight. All this creates uncertainty and that’s never good for trade. As I say we can but hope that this is a blip whilst the market place re adjusts, I’m relatively lucky in that my milk buyer has announced a penny increase due to demand, I hope they’re not having second thoughts, that gain could be relatively short lived if the rest of the market is in reverse. I never like seeing other buyers drop their price, I know that at some point it’s likely to impact on the price I get.
 
Had a letter from my milk purchaser this morning warning that their customers are wanting to revise existing orders to cut their costs. "A serious situation" "We ask you to reduce your output and understand the market pressure on prices"

This sounds ominous.

Not sure whether to cut my losses now, before they happen, and send all dairy cows to slaughter, make man redundant, return rented land? Just spread fertiliser on it though. Fertiliser I've yet to pay for.
It's all getting quite scary out there. My advice would be to get hold of your Mp/am/smp etc and bang away at them about intervention.

There's rumours wafting around that across the channel intervention buying is underway . Dairy is in deep doodoo..

Hang in there folks. Batten down it's going to get nasty
 

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