Welcome to Netrider ... Connecting Riders!

Interested in talking motorbikes with a terrific community of riders?
Signup (it's quick and free) to join the discussions and access the full suite of tools and information that Netrider has to offer.

Hey Rus Ler how are you?

Discussion in 'The Pub' started by jonnymac, May 10, 2016.

  1. Hey Rus LerRus Ler I was just reading about how they have dropped prices on milk to the producers and thought of you.
    So I thought I'd ask how it effects you so people hear from the horses or cows mouth so to speak.

    • Like Like x 7
  2. The factory I supply has guaranteed our price until the end of June, the price at the moment is $5.40/kg of milk solids (butterfat and protein) which is about the cost of production. Two other local factories (Murray Goulburn and Fonterra) have dropped prices below production costs. Next season/financial year price will drop by 15-20%, well below production cost, we just don't know how much yet, on top of that with the dry spring/summer/autumn, we've all had to buy in extra feed (an extra $34,000 cost for me and I'm only a small farm) so it looks like my milk income will be down 40-50% on 3 years ago, on the upside beef prices are good, I sold some young stock 2 weeks ago that I would normally keep until September, they made a very good price which will pay for a couple of truck loads of hay - a semi load lasts me about 3 weeks, and I won't need to feed 30 mouths over winter, and there is no guarantee that I will get a better price later on. I've already been to the bank and have been assured that there is flexibility as I'm ahead on payments for my mortgages so things are ok there. 80% of Victoria's milk is exported, 80 - 40ft containers leave the South West daily with dairy products, mostly powders and cheese. But it's not just farmers doing it tough, at least I know my income is going to drop considerably, retailer don't know who is going to walk through the door, our local Suzuki dealer is laying off workers, there is around 10,000 quad bike in the district, if 10% of them can get through winter with out new tyres, there is $350,000 the dealer has missed out on, usually quad bikes will go in for a service, brake pads, tyres, etc. before winter, around $1,000, most this year will do their own servicing, maybe $60-70 and get by as best they can. Its a flow on affect, if I don't buy tyres, the dealer doesn't have work, mechanics get layed off, truck drivers aren't delivering goods, no money in the town. I'll be ok, thing have been tough before, they'll come good at some time, it's just a matter of managing finances and costs until they do.
    • Informative Informative x 17
    • Winner Winner x 13
  3. Hey Rus, not sure if your signature actually applies in your case. I think you are "being an adult" as much as it goes! What doesn't kill you..... (y)
    • Like Like x 1
    • Winner Winner x 1
  4. So Rus, how does someone like me who lives in the suburbs of Melbourne support someone like you out on the land and know it's helping you?
    Not just putting more money in the pocket of Westfarmers or Woolworths?

    I'm certain there would be people willing to purchase milk and their by products at a slightly higher price if they knew it was genuinely helping farmers.
    • Agree Agree x 9
    • Like Like x 1
  5. dude
    you are a real champ
    without people like you we would all be fcuked
    • Agree Agree x 19
    • Like Like x 3
  6. This evening I spent a lot of time looking for an 'independent' milk brand at my supermarket. It would be nice to think that we all gave it some thought, but the truth is, if you haven't tried farming, many don't think about where it comes from or the work that goes into it. I'd like to see all kids spend time on working farms to really appreciate where their food comes from, instead of thinking that it's just always going to be there.
    • Agree Agree x 6
    • Like Like x 3
  7. if i remember correctly
    his milk also goes to a certain brand of cheese
    cant remember
    but with a bit of a nudge in the right direction
    im sure i will look out for it on the shelves
  8. GoldenberriGoldenberri thats a great idea. I remember years ago my tiny mind was blown when I realised meat didn't come from the butcher or the supermarket, it came from an animal that was alive a little while ago. Like the time you realise money doesn't come from dads wallet or mums purse, they have to work for it... Anyway I'm with you, I really think children need to be connected with that fact, and at least acknowledge that for this meal, something died...
    • Like Like x 1
    • Agree Agree x 1
  9. I read an article last year that went something like this..

    "To all the hunters out there, stop being cruel and go buy your meat from the supermarket where no animals were hurt."

    Okay, it was from 'MURICA so it shouldn't have made me as angry as it did. I've tried small boutique farming on my previous farm. It was a 24/7 job. Which I was happy to do as I'm not afraid of hard work. But my ex decided it wasn't the life for him. Now a perfectly productive farm is breeding racehorses that will be used and abused rather than producing top quality beef.
  10. Correct uncle greguncle greg, Great Ocean Road cheese in Coles, Crackerbarrel, Coon, Mil Lel, Fred Walker is all made by Warrnambool Cheese and Butter whom I supply, Devondale cheese and butter is made by Murray Goulburn, Bega is obviously made by Bega, and there's numerous other smaller producers of cheeses, yogurts, etc. however I couldn't blame anyone for buying $1/litre milk as money is tight everywhere.

    Anyone doing a trip along the GOR is welcome to visit my farm for an insight on where their food originates
    Thanks everyone for your thoughts and concerns for country folk
    • Like Like x 15
    • Winner Winner x 1
  11. gona buy me some cheese mate
    • Like Like x 3
    • Agree Agree x 1
    • Winner Winner x 1
  12. I love cheese from the GOR brand, so I am very happy that I am helping locals albeit indirectly.
    • Agree Agree x 1
    • Winner Winner x 1
  13. Instead of supplying to the big boys and being stuck with their prices, does it pay to do some more secondary processing ('bottling' etc?) I realise the capital to do so could be high but could be shared by a few farmers in a co-op?
    • Like Like x 1
  14. I like cracker barrel. I prefer Mersey Valley peppercorn melody though.

    Do you have an aged vintage simular to that?

    I'd be intrigued to know if there's something which puts coin back into your pocket or is it simply a case of you'll end up with higher prices if, who you sell to, sells more?

    It's a real shame if you guys aren't even braking even for all your hard work yet westfarmers are giving dividends back to shareholders and the ceo is earning X(?) million......
    • Agree Agree x 3
  15. I'll purchase some great ocean road tomorrow and give it a dip!
    • Like Like x 2
    • Winner Winner x 1
  16. Very high set up costs and ongoings for a small show, hard to get into markets, supermarkets, etc. I was supplying a farmers market with bottled milk for a time until the health dept. shut us down as we cant sell raw milk it is considered a "dangerous product" ie. the government weren't getting their cut as we have to pay a levy(read tax) on each litre we produce.

    Warrnambool cheese do flavoured cheeses (unavailable until June for some reason) which can be had it IGA , Vic Market, we have trouble buying it in Warrnambool - go figure, we can only get it from the factory

    Yep, were being treated like peasants, just get whatever is left over at the end
  17. Grew up on a dairy farm, mid 80's there was some sort of deregulation (IIRC) and we couldn't compete any more. So the farm stopped producing milk (well cream actually, we had Jersey cows and were selling cream to Peters Icecream up at Taree) for wholesale and used it for pig farming and beef production. I'm with you in spirit Rus LerRus Ler, having seen my dad struggle through and come out on the other side.
    • Like Like x 2
  18. We went through deregulation too 69SIM69SIM, however we were on a lower price than NSW so didn't affect us as much, we actually got payed in advance what we would have lost over 3 years so deregulation could be brought forward, handy for me as I was just starting out at the time
    Most in NSW and QLD lost out big time, dragged down to Vic prices that they weren't use to
    • Informative Informative x 1
  19. Gotta be a market for it though, particularly if it's more expensive. The issue with the big guys dropping price so much is that we all get used to $2 per 2L - which sucks for the farmers as its their margins getting plundered. So you've got to spend up on advertising to get traction. Which cost even more. Tough gig....
  20. The main problem is export, the South West averages 3-4 million litres per day, no way we're gunna drink all that, China has been a big buyer in the past as has Russia although they have an embargo in place at the moment so no buying from them, also Europe has lifted its quota system meaning more milk on the world market, Australia is seen as a "clean and green" food producer but it depends on who's buying and what palms are being greased and what foreign government subsidies are in place.
    • Informative Informative x 2