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Discussion in 'Dairy Farming' started by ivorralph, Dec 6, 2017.
Post code lottery.
@Bossfarmer has not looked in to milk contracts for his dairy venture yet then!
Cherry picked....i wonder how many saw prices above their price and have given notice!
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.
When does C Payne in Yorkshire announce his January price?
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
I think it will be announced sometime late February.
On another thread spud growers are reporting prices dropping 65% for potatoes in the last 12 months alone due to supply and demand yet you don't hear them talking about demos etc because of low prices!
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
Dairy farmers do love a good whinge. It’s as if they are forced to be dairy farmers.
I haven't noticed the retail price of potatoes falling by 65%. Has anyone else seen it?
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.
Only a small % of most supermarket milk is bought on COP contracts!
Just enough so that they can legally advertise that they are paying dairy farmers a fair price.
It’s on contracts here. Doesn’t mean it’s a good price.
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?
No I am saying that, that is why the shop price didn't drop as much as the farmgate price.
Yawn....how long before David Handley is wheeled out and we are told dairy farmers are in a crisis........of their own making.