What model you bought? We've got a 724 here on demo/hire. Apparently we should buy it
Milk price drop!
- Thread starter ivorralph
- Start date
betweenthelines
Member
- Location
- southwest
About 50% of milk in the UK goes into the liquid market, so half the price should be related to the retail price-i.e. rock solid.
Several buyers (mainly in the cheese sector) are on solids contracts, so presumably they want the solids or would be imposing a price cut for higher fat milk.
Look at the range of products made as a "by product" of raw milk-low fat yogurts, milk shakes etc.etc.--processors are getting BF for free as a by product anyway, so how can they justify price cuts?
If a processor has a supply surplus, some will be made into shakes, some into butter, both of which can be held off the market until prices rise.
If your feed merchant suddenly said prices were going up 10% because of world market conditions you'd challenge it, so why meekly accept price cuts?
Several buyers (mainly in the cheese sector) are on solids contracts, so presumably they want the solids or would be imposing a price cut for higher fat milk.
Look at the range of products made as a "by product" of raw milk-low fat yogurts, milk shakes etc.etc.--processors are getting BF for free as a by product anyway, so how can they justify price cuts?
If a processor has a supply surplus, some will be made into shakes, some into butter, both of which can be held off the market until prices rise.
If your feed merchant suddenly said prices were going up 10% because of world market conditions you'd challenge it, so why meekly accept price cuts?
Clay52
Member
- Location
- Outer Space
Even liquid milk contracts have a basis in milk solids or you would just chuck some water in the vat to up the litres.
Solids prices are what set the price of milk. Even liquid contracts.
And yes if feed goes up 10% due to world markets we do have to accept it. We are happy when they go down 10%.
lazy farmer
Member
- Location
- som/dor border
Christ are we really going to have the same arguments as 2 yrs ago
- Location
- M6 Hard shoulder
Im outChrist are we really going to have the same arguments as 2 yrs ago
Grassman247
Member
What’s to low then? as I know plenty who can survive at 16p
betweenthelines
Member
- Location
- southwest
Christ are we really going to have the same arguments as 2 yrs ago
I only commented because the views on here seem to be that price cuts are the farmers fault when I think processors should be questioned more.
I'm no longer in the Dairy industry (on either side) so it's no skin off my nose. I'll leave you in peace to accept your fate.
Sparkymark
Member
The worst thing we can do is start protesting at supermarkets and the likes. It just gets peoples backs up. What makes us so special?
Nobody ever put a gun to our heads forcing us to milk cows for a living.
Nobody ever put a gun to our heads forcing us to milk cows for a living.
lazy farmer
Member
- Location
- som/dor border
over supply is our doing
Headless chicken
Member
- Location
- West Wales
Sub 20ppl. Plenty around here terrified at this most recent drop. Not going to disagree that you know plenty that could survive at 16 but I don’t. I know maybe one or two. And they survive but they will still need 26 the next year to get back to square.
gone up the hill
Member
- Location
- Devon
Would backfire badly on dairy farmers if they start protesting again because of a very small price cut.
Threads/ articles all over the internet of people moaning about the way butter has gone up in price the last 2/3 months ( up by 30% easily ) they will not take kindly to dairy farmers moaning when dairy products are at record high prices in the shops.
Make no bones about it the Handley's are only out for themselves and not for hardworking and dedicated dairy farmers.
Farmer Bogass
Member
- Location
- Lincolnshire
It's still 30ppl so no need to panic yet. The Average I am working from is around 25ppl based on my previous post, so if it does go down to 16ppl I can cope for a while, but then other dairy farms running on fine margins will go bust/shut up shop, supply will drop and price will rise again. Hopefully it doesn't get that low again as the last drop ate into the below average reserve funds and has just recovered to where I want it. As HC says, low price is only an issue if it's prolonged for a long period, brining a 5 yearly average down.
It will be returned that's for sureAt least you'll have a new shiny tractor for the demo's
At least you'll have a new shiny tractor for the demo's
Better take the scraper tractor- unless he's buying it for the scraper!
Yep, you don’t want an ex demo model, better to have a proper new one!
- Location
- South Molton
If you need to save money in the high times to get you through the low times i would say the business is unviable.
lazy farmer
Member
- Location
- som/dor border
- Location
- M6 Hard shoulder
- Location
- South Molton
No but its funny how in the last dip some farmers managed of strip out a whole heap of costs !
- Tags
- milk