Clay52
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Hahaha.If you need to save money in the high times to get you through the low times i would say the business is unviable.
Hahaha.If you need to save money in the high times to get you through the low times i would say the business is unviable.
I would say you need a COP of 20p thenIf you have a COP of 24 ppl and milk price swings of 20/30 dont spend it all when the price goes over 24ppl, I would think thats one of the first principles of business.
Nope cant go there sorry, you win I'm outI would say you need a COP of 20p then
Sell on the spot market at 10p and you need a COP of 10p?What about 15ppl.
These cost cost stripped out in lean years can have a negative effect in the good years. Vicious cycle.
Why would you spend to increase production at a peak ? Budget to start increasing at the bottom, then ride the wave ?Sell on the spot market at 10p and you need a COP of 10p?
If the cycle is going to be 30 for a year then 20 for a year. Then by the time you spend to increase production in peak you will be in the trough.
Can any industry afford to break even year on year?
I agree but look at cow prices!Why would you spend to increase production at a peak ? Budget to start increasing at the bottom, then ride the wave ?
Sell on the spot market at 10p and you need a COP of 10p?
If the cycle is going to be 30 for a year then 20 for a year. Then by the time you spend to increase production in peak you will be in the trough.
Can any industry afford to break even year on year?
Thats why you try and buy before the market hots up.I agree but look at cow prices!
Thats the key. How long is the pointpoint
we can start!!not read all the replies
has anyone blamed new entrants yet ?
Don't think the tax man will be happy about you hiding money from him in the good times to get you out of trouble in the bad times.
Don't think the tax man will be happy about you hiding money from him in the good times to get you out of trouble in the bad times.
Long term profitability is the key. You cannot predict the lowest of the low prices before they happen.
Farms can be extremely profitable and still make a loss at a certain point in time.
Lowest cost of production doesn’t automatically equal most profitable.
is your milk contract linked to the spot price? should you not be looking to get on a cop contract to avoid the fluctuations?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.
They don't just grow on trees !is your milk contract linked to the spot price? should you not be looking to get on a cop contract to avoid the fluctuations?
so the cop ones are rare?They don't just grow on trees !