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Will Richardson Profile
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Ex 97 2E

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A case of not what if... but WHEN



  When world trade agreements finally get sorted and Canada is more or less forced to allow access to its markets for dairy produce, milk quotas will immediately become unsustainable and each milk producer will be free to produce unlimited amounts of milk. Of course the price will drop, herds will expand and producers will become more efficient at producing milk. In my opinion this could happen within 3years and certainly within 5years. What does everyone else think ?





8/1/2007, 13:10 Link to this post PM via Email   PM via Forum
 
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Re: A case of not what if... but WHEN


will it be for the better?

I think Canada have a good system, the only thing I would change is the price of quota.
I assume the cost of qouta makes it hard for young farmers to get into this business.

but without qouta, producing unlimited amounts of milk with a minimal work crew is just not right for either the workers or the cows.

---
"Dum spiro, spero"

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8/1/2007, 14:53 Link to this post PM via Email   PM via Forum
 
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Re: A case of not what if... but WHEN


I think that anything is probably better than the 'limbo-land' that we are in right now.

I would prefer that we could retain market support, providing that the system is managed properly. Europe put a good system in place fifty years ago for good reasons, and then left it to rot. Now its biting us where it hurts.

But we are beyond the point of no return. I would just like to see the uncertainty finally levelling off so that we can get on with our lives, so to speak.

11/1/2007, 21:03 Link to this post PM via Email   PM via Forum
 
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Re: A case of not what if... but WHEN


Mind boggleing Will, simply mind boggleing, its like your a jealous school boy or something.Why do you care so much about our market?
12/1/2007, 16:59 Link to this post PM via Email   PM via Forum
 
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Re: A case of not what if... but WHEN


I agree with canuk, how much does our market affect you over in the UK, very little I would guess. If you can afford Canadian quota you are welcome to come buy some. While our milk price may be high our inputs are also incredibly high due to quota prices.
12/1/2007, 17:47 Link to this post PM via Email   PM via Forum
 
foxleigh Profile
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A case of not what if... but WHEN


what do hay or grain or electricity or labour prices have to do with quota prices?
12/1/2007, 21:35 Link to this post PM via Email   PM via Forum
 
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EX91

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Re: A case of not what if... but WHEN


Who said anything about hay, grain, labour and electricity? I meant our total input costs to operate a dairy, of which quota is a very large percent.
13/1/2007, 1:18 Link to this post PM via Email   PM via Forum
 
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Ex97
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A case of not what if... but WHEN


but isnt it true that the farmer owns the quota and if it is paid for and owned then it is no longer an input but an asset.
Which may be borrowed against.
Therefore I dont consider a quota to be an input cost like labour,electricity,hay and grain rather capital investment by the farmer similar to land and water rights/entitlements here.
13/1/2007, 8:11 Link to this post PM via Email   PM via Forum
 
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EX91

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Re: A case of not what if... but WHEN


True - the farmer owns it as much as he is the one the bank will be coming after if he misses a loan payment; but with quota for a small dairy farm costing a million dollars +, never mind any herd over 100 cows, the only farmers that own all their quota are those that have been in the business 20+ years. The rest of them are managing huge debt which has to be paid every month.
13/1/2007, 15:41 Link to this post PM via Email   PM via Forum
 
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Re: A case of not what if... but WHEN


And if you are being strictly business about it, owned quota has to be counted along with the other valuable assets as having a potential value earning money at the very least in the building society. And if a farm business can't earn more annually than the value of its assets could earn in the building society annually, then the business is unviable, even if it is putting bread on the table.

The only thing keeping us farming in Northern Ireland is the relentless increase in land value. Its certainly not the earning power. And land value is inflated by property developers who buy up everything thats going.


13/1/2007, 17:08 Link to this post PM via Email   PM via Forum
 


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