Tirlán (glanbia)

Because without this expansion you could pay a higher price for the existing milk.
Think about a farm that has no borrowings. Able to take x amount out. He doubles his numbers he can't take 2x out until the investment is paid for on the expansion. And let's assume he is just as profitable per litre on the existing milk as the new milk. The new milk has a bank repayment to come off it.
At the moment all milk pays for this investment (new and existing).
You have economies of scale but I don't believe this is actually worth much when you have a company size of glanbia. And one problem with a big supply peak (due to spring calving) is when the peak processing months come they have to process it into every product they can make not the most profitable products. Which reduces the return to the farmer.
Charging for new milk will be a farmer decision.
 
Anyone who believes that the the big 3 co-ops inability to pay a decent price for milk at the moment is due to new entrants and new milk is very much mistaken.
As far as I can see the only farmers in favour of a processing charge are those who are either unwilling or unable to expand any further. The attitude of: "I'm ok now, pull the ladder up". It's a pity to see such disunity on the matter.
 
Because without this expansion you could pay a higher price for the existing milk.
Think about a farm that has no borrowings. Able to take x amount out. He doubles his numbers he can't take 2x out until the investment is paid for on the expansion. And let's assume he is just as profitable per litre on the existing milk as the new milk. The new milk has a bank repayment to come off it.
At the moment all milk pays for this investment (new and existing).
You have economies of scale but I don't believe this is actually worth much when you have a company size of glanbia. And one problem with a big supply peak (due to spring calving) is when the peak processing months come they have to process it into every product they can make not the most profitable products. Which reduces the return to the farmer.
Charging for new milk will be a farmer decision.
Well they ain't exactly bursting themselves paying for liquid/winter milk either
 
Anyone who believes that the the big 3 co-ops inability to pay a decent price for milk at the moment is due to new entrants and new milk is very much mistaken.
As far as I can see the only farmers in favour of a processing charge are those who are either unwilling or unable to expand any further. The attitude of: "I'm ok now, pull the ladder up". It's a pity to see such disunity on the matter.

Its hardly that simple, if you are, say an average supplier, built up to 90 cows supplying milk to your local co-op 30 years .
You would feel that part of the value of the milk you supplied was used to build processing capacity in the co-op.
So when the beef or tillage man down the road puts up a rotary and start sending the milk of 400 cows to the same co-op ,it's hardly unreasonable if the new entrants have to make a contribution/levy towards increasing processing capacity.
 
Its hardly that simple, if you are, say an average supplier, built up to 90 cows supplying milk to your local co-op 30 years .
You would feel that part of the value of the milk you supplied was used to build processing capacity in the co-op.
So when the beef or tillage man down the road puts up a rotary and start sending the milk of 400 cows to the same co-op ,it's hardly unreasonable if the new entrants have to make a contribution/levy towards increasing processing capacity.
So do you believe the 90 cow supplier has been taking a reduced price for the last 30 years in order to fund the current infrastructure? As a share holding grain supplier to the largest Coop in this country for the last 40+ years I don't believe I have any claim over the grain infrastructure, I can't see why milk suppliers should feel any different.
 
So do you believe the 90 cow supplier has been taking a reduced price for the last 30 years in order to fund the current infrastructure? As a share holding grain supplier to the largest Coop in this country for the last 40+ years I don't believe I have any claim over the grain infrastructure, I can't see why milk suppliers should feel any different.
In a word yes.
In my experience the processing infrastructure requirements to convert a litre of milk into a saleable product cost an awful lot more than what's required to process grain.
Most of it ends up for human consumption and all the regulation that entails.
Not to mention running costs, with milk being near 90% water.
 
I don't like the co-plc model at all so really don't know what the right or wrong answer is in glanbia but for any other co-OP I think its perfectly reasonable to require some sort of share up process, be that up front or over time.

My father knew some of the men who were around when his local co op was established way back when. He would say that those farmers had to invest what was in relative terms an awful lot more than any co op proposed asking from new entrants a few years back when quotas were ending.

A co op is a business that should be owned by its suppliers with the express purpose of maximizing the value of their suppliers product. It is only right and fair that new suppliers should have to invest in these benefits.


Like I say, no idea how you apply these principles to Kerry and Glanbia though
 
In a word yes.
In my experience the processing infrastructure requirements to convert a litre of milk into a saleable product cost an awful lot more than what's required to process grain.
Most of it ends up for human consumption and all the regulation that entails.
Not to mention running costs, with milk being near 90% water.
The regulation and processing requirements to convert oats to food grade porridge is absolutely massive. Similar for malting and food grade barley. Very little difference really.
 
New entrants have to share up. 2000 shares at 5 euro each

Big bowl of contention in my area. By existing members wondering why we are giving new entrants free money by getting them to buy 2000 shares. They cost 10k and are worth way more with their underline value.
Apparently some of the new entrants went to strathroy because they weren't prepared to buy shares. It was a gift horse and will make far more for them then a few extra cows in the long run.
At the same time existing members couldn't buy shares. In the last trading round existing members were given the chance
 
Big bowl of contention in my area. By existing members wondering why we are giving new entrants free money by getting them to buy 2000 shares. They cost 10k and are worth way more with their underline value.
Apparently some of the new entrants went to strathroy because they weren't prepared to buy shares. It was a gift horse and will make far more for them then a few extra cows in the long run.
At the same time existing members couldn't buy shares. In the last trading round existing members were given the chance

When i went into milk two years ago i went with Strathroy and reason been i went to a meeting of suppliers who were ex-members of Wexford creamery and Cormac from Stratroy was at the meeting. There was not one complaint from the floor to Cormac which impressed me compared to all the moaning about Glanbia. Was the reason i joined Stratroy and i dont regret it either. Stratroy had 26 new producers wanting to join next year but only are taking on nine as they wont take on more than they can handle.

As regards grain if someone was buying inputs (seed, sprays, seed and fertilizer off Glanbia and selling them grain for over 500 acres of ground) then i think Glanbia has profited every bit as much out of them as any 30-40,000 gallon man before quota went.
 
At the fmp meeting the other night the glanbia board member was insistent that a glanbia supplier is better off than most other supplier, apart from the west cork lads. He went on about what makes up the milk price on the KPMG league. Our constituents , our co op bonus , you would have to be in fixed price and trading schemes and then you're doing really well.
 
So do you believe the 90 cow supplier has been taking a reduced price for the last 30 years in order to fund the current infrastructure? As a share holding grain supplier to the largest Coop in this country for the last 40+ years I don't believe I have any claim over the grain infrastructure, I can't see why milk suppliers should feel any different.

I couldn't see either a milk supplier , or a grain supplier being allowed to claim or remove even a gutter bolt , because they think they paid for it .
But ,
At the fmp meeting the other night the glanbia board member was insistent that a glanbia supplier is better off than most other supplier, apart from the west cork lads. He went on about what makes up the milk price on the KPMG league. Our constituents , our co op bonus , you would have to be in fixed price and trading schemes and then you're doing really well.

Does the person you speak of use the word "We" a lot ?
 
At the fmp meeting the other night the glanbia board member was insistent that a glanbia supplier is better off than most other supplier, apart from the west cork lads. He went on about what makes up the milk price on the KPMG league. Our constituents , our co op bonus , you would have to be in fixed price and trading schemes and then you're doing really well.

A Board member who is part of the gravy train and therefore highly incentivised to say such things :scratchhead:

The milk league is independent and doesn't lie.
 
A Board member who is part of the gravy train and therefore highly incentivised to say such things :scratchhead:

The milk league is independent and doesn't lie.
I made the point that every month in the farmers journal we are consistently near the bottom of the table, then the KPMG milk price audit comes out and glanbia are wonderful. Just behind the west cork boys. A kick in the teeth
 
At the fmp meeting the other night the glanbia board member was insistent that a glanbia supplier is better off than most other supplier, apart from the west cork lads. He went on about what makes up the milk price on the KPMG league. Our constituents , our co op bonus , you would have to be in fixed price and trading schemes and then you're doing really well.
Hard to figure were he got that from. Their price of feed a fert are constantly higher than the rest even taking in their loyalty crap. And now they have a fixed milk price which you will only get paid on if you trade with them. Talk about wanting your cake and eating it
 
He had all the figures base price, then co op bonus which is ours anyway, plus constituents which is also ours plus fixed price and trading bonus. You couldn't make it up
 
He had all the figures base price, then co op bonus which is ours anyway, plus constituents which is also ours plus fixed price and trading bonus. You couldn't make it up
Can't see him been re-elected the next time. Def after getting brain washed up there
 
Do all the other prices on the KPMG audit include constituents, top ups , and other makey up payments?
 
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