Milk Price Tracker

[Sid]

You wouldn't have fancied going as low as i did. Plenty went lower.

Lets just say after seeing the organic milk and conventional milk price roller coaster over the last few years i do budgets on a realistic milk price not a pie in the sky one.

 

[sidjon]

http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11861354
Looks like the kiwis are going to be rolling in money next season

 

[Beef farmer]

http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11861354
Looks like the kiwis are going to be rolling in money next season

@Irish NZ has just ordered a new speedboat and car.

 

[Irish NZ]

@Irish NZ has just ordered a new speedboat and car.

*jet boat and a ute*......

 

[Cows 'n grass]

$6.55 NZ = £3.53 / kg MS

On a 10% solids jersey litre = 35.3 ppl for the season ending now.

My rolling 12 month Arla price for a litre at 6 and 4% is 27.1ppl so Fonterra are definitely getting some things right.

The difference on my 2 million litres is 160k.

Looks like the V8 land cruiser may have to go on hold for a while.

 

[Beef farmer]

*jet boat and a ute*......

C'mon you're not even a real kiwi.

 

[Irish NZ]

Still trying to be....

 

[lazy farmer]

had a letter from our milk buyer yesterday holding the base price for july at @29p and on the back of strong sales they have suspended the production controls introduced earlier this season and are asking for more milk and will be recruiting autumn winter milk to start later this yr. have never had such a bullish letter from a milk buyer.

 

[Beef farmer]

had a letter from our milk buyer yesterday holding the base price for july at @29p and on the back of strong sales they have suspended the production controls introduced earlier this season and are asking for more milk and will be recruiting autumn winter milk to start later this yr. have never had such a bullish letter from a milk buyer.

If you could forward the letter to dc please

 

[lazy farmer]

surely they will rescind like last yr ?

 

[jerseycowsman]

$6.55 NZ = £3.53 / kg MS

On a 10% solids jersey litre = 35.3 ppl for the season ending now.

My rolling 12 month Arla price for a litre at 6 and 4% is 27.1ppl so Fonterra are definitely getting some things right.

The difference on my 2 million litres is 160k.

Looks like the V8 land cruiser may have to go on hold for a while.View attachment 523386

So why are European prices so far behind?

 

[Dragon]

It's not juse the good milk price but also the fact the milk profile is so seasonal and still maintain manufacturing efficiencies. I'm not sure of what percentage of the milk supply goes into value added products.

 

[yin ewe]

had a letter from our milk buyer yesterday holding the base price for july at @29p and on the back of strong sales they have suspended the production controls introduced earlier this season and are asking for more milk and will be recruiting autumn winter milk to start later this yr. have never had such a bullish letter from a milk buyer.

Time to sell cows and cut back further then

 

[Cows 'n grass]

No idea. Too much going into liquid or other short shelf life products? Supermarkets better at buying than daries are at selling?

One thing you can't blame it on is inficient use of factories because of too much spring milk, nowhere is more seasonal than NZ.

 

[Beef farmer]

No idea. Too much going into liquid or other short shelf life products? Supermarkets better at buying than daries are at selling?

One thing you can't blame it on is inficient use of factories because of too much spring milk, nowhere is more seasonal than NZ.

Starting to hear more people producing a bit of winter milk over there now.

 

[More to life]

Starting to hear more people producing a bit of winter milk over there now.

Yes but then all they do is moan about how cold it is and they wished they had a cow house

 

[pappuller]

Yes but then all they do is moan about how cold it is and they wished they had a cow house

And a diet feeder and a robot

 

[Chips]

So why are European prices so far behind?

In a word Currency . Lazy Farmers price is pretty much the arla price in Europe , here we are still being held back by the smoother . Hopefully towards the end of the year currency will come our way along with rising markets that will see the uk arla price move up the league tables once more

 

[cornishfarmer]

Poor selling from the dairys, giving supermarkets the profit not the farmers.
What Arla needs is 10 block spring calving farmers to look at the business and cut out all the crap. All these essentials that Arla think they need but don't. That is a start too many hands in the pot

 

[farmer on a bike]

Poor selling from the dairys, giving supermarkets the profit not the farmers.
What Arla needs is 10 block spring calving farmers to look at the business and cut out all the crap. All these essentials that Arla think they need but don't. That is a start too many hands in the pot

At times you perhaps could have identified issues like that, but the head count has been slashed over the last few years and certainly the farming team we work with work some long hours. We often get emails sent very late at night or on the week end. There are strict limits on overnight stay bills and meal bills when staff are travelling as well. In the time I have been involved there has rightly been a significant tightening of spend across the business. This process continues and Poul Krogsgaard, the Vice CEO concentrates on cost control across Arla, each year more and more cost has been removed.

I think it is more around very strong resistance to price increases from the supermarkets, which cannot continue when markets are strengthening. That is along with the currency smoothing issue which still owes us another 2ppl currently. There are also known issues in Germany, where as a result, Arla has walked away from significant business, placing the milk onto the world market in various products instead, which looking like it could be a very well played bet given the way markets have moved in the last 2 weeks.