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Dairylands Profile
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EX93
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United dairy farmers Dec Auction


It would be a very big investment to make on the back of a few months good milk price. Talk's cheap, but the capital required for parlour, bulk tank, building conversions, stock would be a bit of a stumbling block for many. Would it not be a bit safer to reduce the sucklers and plough a bit extra? But then when has reason ever come into it.
10/12/2007, 21:38 Link to this post PM via Email   PM via Forum
 
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Ex96
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Re: United dairy farmers Dec Auction


I'm actually surprised it hasn't worked the other way....

Let's face it, there never has been a better time to sell (especially if your'e in an area with no BT restrictions)
With the price of milking cattle at a high anyone who is either near retirement age with nobody to follow on, or perhaps people who don't own their own farm has to seriously consider whether there will ever be a better time to sell.

The price of fresh calved cows/heifers has doubled compared to this time last year, the extra revenue this would bring to many if considering getting out must be an attractive factor.
10/12/2007, 21:43 Link to this post PM via Email   PM via Forum
 
moore Profile
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EX93
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Re: United dairy farmers Dec Auction


Will is right about beef men starting into milk, i know of 3 within an 8 mile radius from here who are well into the building work.
10/12/2007, 22:31 Link to this post PM via Email   PM via Forum
 
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Ex96
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Re: United dairy farmers Dec Auction


Exactly Moore, a lot of interest from the beef sector, who have just been told there is no future in beef production from the suckler herd! I tried e-mailing the LMC and UFU to suggest that when it came to beef production "We're not Brazil, we're NORN IRON!" but to no avail, seems they've fallen foul of the old addage about the oldest job as opposed to the oldest proffession! Seems they have just laid down and taken whatever their clients gave them with a huge smile their face!! emoticon and when that client gets it cheaper (and not neccesarily better - full of disease) you let them go on ahead!! Hmmmm

Sorry if my remarks are a little risque!

The last thing we need here is a flood of milk onto a depreciating market, why can't we learn from the Arabs and the Oil market?

I was begining to get excited about the prospects for future milk prices, close to the long awaited point where I could pack up the CAD, and the abuse from clients and contractors, and go pulling tits for a living instead (not at work a the moment!!)

Ah well, here's hoping David Dobbin can get his finger extracted in 2008 after a nice restful Christmas!!

---
Farming is the oldest JOB in the world, too many people seem to have it confused with the oldest PROFESSION!
10/12/2007, 23:03 Link to this post PM via Email   PM via Forum
 
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VG89
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United dairy farmers Dec Auction


I just heard of a man about 8 miles from where we are who is going into dairying. He is a building contractor who has pedigree cattle and sheep. Apparently, he is well into building a unit for 130 cows with 2 robots.

I dont want to name names but I also hear that a well known breeder of pedigree cattle and sheep from Coleraine is definitely going into dairying.

Another breeder of pedigree livestock mentioned in his column in the Farmers Weekly a few weeks back that he was 'seriously considering' a move to milk production.

Coincidentally all three have pedigree Charolais cattle and Texel sheep!

I understand that as I didnt hear these things first hand there is a possibility that they are not 100% accurate. Apologies if this is the case.

The thing that worries me is that I cant imagine such people starting of with 60 or 80 cows and working up. I would expect them to start of in a big way.

The one thing I dont understand is how the volume of milk sold is more than double that of december last year (44m to 92m litres). The beef men are only at the thinking/building stage so we can't blame them!

Sorry for going on, and if anything I have said is not completely true.
11/12/2007, 0:10 Link to this post PM via Email   PM via Forum
 
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Ex97
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Re: United dairy farmers Dec Auction


We appear to have a system of forward-auctioning milk, some of which can be thrown back if the price drops. Its called 'option' milk. Therefore, the buyer can take the benefit of forward-buying milk cleverly on a rising market, but can dump it and buy again cheaper when the market falls. That means that half of that milk sold at 33 and 29 pence was thrown back and resold at the start of december for 23p.

I think there will be a lot of very unimpressed farmers.

11/12/2007, 13:42 Link to this post PM via Email   PM via Forum
 
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Ex 97 2E
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United dairy farmers Dec Auction


I would have thought that the buyers would have had to pay to buy the option to buy milk at 33 etc. But obviously if they decide not to take the option to buy at 33p and instead buy at 23p unless the option was seriously expensive the buyers will be better off doing what they appear to have done.
11/12/2007, 14:23 Link to this post PM via Email   PM via Forum
 
Dairylands Profile
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EX93
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United dairy farmers Dec Auction


They all reneged on their option price including Dale Farm. It wouldn't do for a processor to make a loss.
11/12/2007, 14:41 Link to this post PM via Email   PM via Forum
 
moore Profile
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EX93
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Re: United dairy farmers Dec Auction


moores af is right about the first pedigree sheep man however the later one has given up the idea.
11/12/2007, 15:44 Link to this post PM via Email   PM via Forum
 
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GP83
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Re: United dairy farmers Dec Auction


It went through my mind a few weeks ago that the big boys would be trying to devise a cunning plan to get the milk price back under (their ) control.

This may be that plan

SS
11/12/2007, 17:40 Link to this post PM via Email   PM via Forum
 


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