EDITOR'S BLOG
POSITIVE PROSPECTS
For Irish milk prices in 2019
by Service Dealer Ireland Editor, Liam de Paor
 
Liam de Paor, Service Dealer Ireland Editor

The positive indicators for skim milk powder (SMP) markets have continued into the New Year, the most remarkable probably being the rapid sales of increasingly large tonnages out of intervention at rising prices.

 


The positive indicators for skim milk powder (SMP) markets have continued into the New Year, the most remarkable probably being the rapid sales of increasingly large tonnages out of intervention at rising prices. A total of 357,345 tonnes have been sold out of intervention in the period from December 2016 to date, leaving only around 22,000t in stock after a whopping 80,242t were sold in early January.


Some 18,514t of skim milk powder (SMP) sold out of EU intervention stocks at the latest tender sale which took place in Mid-January , at a price of €1,585/t with just 4,000t remaining. There are now no Irish SMP stock in the intervention system.


The minimum sales prices have been rising since last July, now practically matching fresh Dutch and German spot quotes for feed grade powder. At €1554, the most recent minimum accepted price was on par with the EU average spot quotes for feed grade powder quoted for 9th January 2019.


Now that intervention stocks have dropped to below their March 2016 level, we can expect to see a continued recovery in SMP prices, and a rebalancing of the butter/powder prices to more “normal” levels. Indeed GDT SMP prices have been rising steeply in the last three auctions – albeit from very low prices – to a level of US$ 2,200 last seen in June 2017.


European spot quotes for food grade SMP have also improved consistently in recent weeks, with Kempten (German), France Agrimer and Dutch PZ quotes now at €1830/tonne with anecdotal trade prices near €1900/t.


Even futures markets are looking good for SMP producers, with latest EEX quotes suggest prices rising above €2000/t by the end of 2019.Average EU market prices also reflect this same trend. In the first week of January 2019, they reached €1730/t.


It is also the improvement in the spot and market prices of SMP which caused the December Ornua Purchase Price Index (PPI) to increase from 104.9 points to 107.5, equivalent to a milk price of 30.55c/l + VAT (32.2c/l incl VAT).


However, lower supplies in the EU, have continued to moderate output growth expectations from the bloc. The EU Commission reports a likely production increase of 0.8% for 2018 over 2017, and predicts only a 0.9% increase in 2019. Their long term prediction is for moderate growth of 0.8% per annum to 2030 as environmental factors become more of a restraint in Europe.


Predictions for global milk output growth for 2019 are also for no more than 1% increase, a significantly lower level than seen through 17/18.The key of course is the supply demand balance, and supplies have trended towards better matching demand growth in recent months.


In its Quarterly Dairy Report published in December, Rabobank predicts “double digit” demand growth from China for dairy products, due largely to excessive production costs restricting domestic output.


Domestic dairy demand in most of the developed world remains solid, especially for butter and cheese which tend to be traded more domestically than on export (Ireland being an exception to this as most of our butter is exported).


Oil revenues for some emerging countries will have suffered in the last few months as crude oil prices went from near $80/barrel to around $55-60 today, and this will undoubtedly play a part in their food import affordability.


The long-term demand outlook remains very positive, with global population and income growth in emerging countries expected to continue to drive dairy demand growth, in the context of more moderate global output growth.


Meanwhile Dairygold is to offer its suppliers a fixed milk price scheme with a base price of 29.9 c/l (excluding VAT), which works out at 31.5c/l plus VAT. The price includes quality milk bonuses (0.65c/l), and is for milk at 3.3% protein and 3.6% butterfat.


Dairygold said this would work out at the equivalent of 35.05c/l when adjusted for 2018 fat and protein averages from suppliers.


The voluntary scheme will run for three years from 1 March 2019 to 30 November 2021. Farmers can choose to fix 5% or 10% of their total milk volumes, based on their 2018 milk supply. The fixed volume selected will apply for the calendar years 2019 to 2021.


The closing date for farmers to sign up is 20 February 2019.

NEWS
CAMSAW TO DISTRIBUTE PELLENC IN IRELAND
Deal with Etesia UK
 
L-R: Paul Carney from Camsaw shakes hands with Stephen Muir of Etesia UK after becoming Pellenc distributor in Ireland

Agreement will see the County Laois based business exclusively distribute Pellenc battery powered equipment throughout the Republic of Ireland.

 


Etesia UK has announced a new partnership with Camsaw Ltd, which will see the County Laois based business exclusively distribute Pellenc battery powered equipment throughout the Republic of Ireland.

 

Established in 1987 by Philip Carney, Camsaw Ltd is one of Ireland’s leading providers and distributors of garden machinery and equipment and is the official Irish agent of Olec-mac and Weibang garden and forestry machines. Camsaw also manufacture its own Legacy brand of steel deck push lawnmowers.

 

L-R: Paul Carney from Camsaw shakes hands with Stephen Muir of Etesia UK after becoming Pellenc distributor in Ireland

 

Phillip’s son, Paul Carney, took over the business in 2005 and explained that this new partnership outlines the future vision of the company.

 

“We are delighted to partner with a company like Pellenc. They have shown that their pathway to growth is through new product developments and innovations. It is an exciting opportunity for Camsaw to partner with a company so far ahead of its competitors in the market.

 

“The market is more open to battery powered products than ever before and at Camsaw we wanted to take our first step into this sector by providing the highest quality product in the marketplace. In our opinion - that is Pellenc.”

 

The extensive product range features a portfolio from chainsaws, pole saws and hedge cutters to grass strimmers, brushcutters and mowers.

 

“We would like to establish ourselves with dealerships in Ireland and really become the go-to company for professional battery powered products," said Paul, "particularly with the likes of local councils, contractors and professional landscaping and maintenance companies.”

 

Stephen Muir, Etesia UK’s business development manager, commented, “We are delighted with this new partnership. Camsaw is an established business with a large dealer network within the country and is a well-known and respected business. We want to be associated with a company that can successfully promote and enhance the sales of Pellenc equipment in Ireland and we very much believe we have that in Camsaw.”

2018 BEST YEAR FOR TRACTOR SALES FOR OVER A DECADE
New revised figures
 
A total of 1,984 new tractors were sold in 2018

The new revised tractor sales figure from the Revenue Commissioners for 2018 makes it the highest level of new registrations since 2008.

 


The new revised tractor sales figure from the Revenue Commissioners for 2018 makes it the highest level of new registrations since 2008.

 

The original figures given to the FTMTA by the Revenue Commissioners showed lower sales than what was actually sold.

 

Initially, it was reported that 238 new tractors had been sold in January 2018.

 

However, revised figures show that a total of 463 new units were actually sold.

 

This means a total of 1,984 new tractors were sold in 2018 over the 1,762 figure that was released.

 

The highest sales of new tractors were sold in Cork 258 new tractors sold.

 

Second was Wexford, where 157 tractors were sold and in third place was Tipperary with 156 new tractors

LYONS & BURTON OPEN A NEW BRANCH
At Graigecullen, on the outskirts of Carlow
 
Lyons & Burton

The new branch will provide sales, service and spare parts supplies to new and existing New Holland customers.

 


New Holland dealers, Lyons and Burton Ltd are opening a new branch at Graigecullen, on the outskirts of Carlow town.

 

 

Lyons and Burton Ltd was founded in 1977, and is based at Clane Road, Kilcock, Co Kildare.

 

Lyons and Burton was founded by three brothers - Alan, Percy, and Ernest Lyons - along with Derek Burton.

 

It was appointed as a Sperry New Holland dealer to sell its range of combine harvesters, forage harvesters, square balers, round balers, mowers and rakes.

 

In 1988 Lyons & Burton was appointed as a John Deere dealer.

 

In 2012, it parted company with John Deere and took on the New Holland franchise.

 

The new branch will provide sales, service and spare parts supplies to new and existing New Holland customers.

 

Its enlarged territory now includes north Wexford, and all Kildare and Carlow.

 

The new branch will be operational in the coming weeks at their new premises beside Dooley Motors and the Talbot Hotel.

 

The new workshop will be equipped with equipment acquired from Enniscorthy Motor Company, the former Wexford New Holland dealers.

 

Franchises held by Lyons and Burton Ltd include Amazone, Blaney, Husqvarna, Kverneland, Major, McConnel, McHale, NC, Quickie and Sparex.

NEW DEALER FOR NEW HOLLAND
Based in Kilkenny
 
Murphy Motors

Murphy Motors, based in Glenmore, will open a New Holland parts and sales outlet at Cillin Hill on the outskirts of Kilkenny city early in April.

 


Murphy Motors, based in Glenmore, will open a New Holland parts and sales outlet at Cillin Hill on the outskirts of Kilkenny city early in April.

 

 

There is a very successful livestock mart at Cillin Hill and a major Agri retail hub based there so this is a great location for any farm machinery dealer.

 

Murphy Motors will now cover the whole of Kilkenny and the south of Wexford, in addition to its existing territory.

 

It has been a New Holland dealer for 59 years, making it the oldest New Holland dealer in Ireland.

 

It is particularly strong in south Kilkenny, east Waterford and south-west Wexford.

 

The New Holland network in Ireland now comprises 13 dealerships in 15 locations.

JOHN DEERE TEAMS UP FOR AUTONOMOUS SPORTS MOWING
With Precision Makers of the Netherlands
 
John Deere / Precision Makers autonomous mower

Manufacturer says they are looking to bring autonomous technology to the precision turf industry to ease labour concerns.

 


John Deere has announced an exclusive agreement to develop autonomous mowing solutions for the golf and sports turf industry with Precision Makers, a Netherlands based company that specialises in autonomous technology for various types of equipment.

 

 

“The turf industry is looking for more sustainable operating models to maintain precision turf, and expanding the use of technology will be critical to the future success of turf managers,” says John Deere’s global golf director Manny Gan.

 

“With labour costs and availability becoming an increasing concern in many parts of the world, customers are eager to introduce autonomous equipment into their operation to ensure tasks can be completed with consistently excellent results and precision.”

 

Precision Makers is an affiliate of Dutch Power Company (DPC), which already has an ongoing supplier relationship with John Deere.

 

“John Deere looks forward to working with Precision Makers to bring the best cost autonomous technology to the precision turf industry to ease labour concerns while providing high quality solutions for precision turf applications,” said Manny Gan.

COMPANY NEWS
Strong 2018 for AGCO, Vaderstad
 
AGCO

Strong growth has been reported in full year figures released by AGCO and Vaderstad.

 


AGCO reported net sales of approximately $2.6 billion for the fourth quarter of 2018, an increase of about 2.6% compared to net sales of approximately $2.5 billion for the fourth quarter of 2017.

 

Excluding unfavourable currency translation impacts of approximately 4.7%, net sales in the fourth quarter of 2018 increased approximately 7.3% compared to the fourth quarter of 2017.

 

Net sales for the full year of 2018 were $9.4 billion, an increase of 12.6% compared to 2017. Excluding the favourable impact of currency translation of approximately 0.1%, net sales for the full year of 2018 increased approximately 12.5% compared to 2017

 

The VADERSTAD Group generated 27% more turnover in its 2018 financial year.

 

The manufacturer of tillage equipment, precision planters and seed drills in Sweden, and Seed Hawk air seeders in Canada, recorded €300 million ($339 million) for the first time, with net profit amounting to €11.8 million ($13 million). 

 

“The drought in 2018, especially in northern Europe, resulted in lower yields in many of our normally strong markets,” said Mats Båverud, president and CEO. “However, cereal prices rose in the autumn, so despite weather-related challenges, we see an increased interest in investing in soil cultivation machines and planters, which increases the crop for farmers in the aftermath of drought.”

 

During the 2018 financial year, Väderstad Group’s recent years of growth accelerated, with revenues increasing by 27% compared with 7% in 2017 vs. 2016 and 5.5% in 2016 compared with 2015.The business has continued to take charge of distribution in several of the 40 countries where it is represented, with new sales subsidiaries set up in Russia and Ukraine maintaining their positions

JOBS
ADVERTISE YOUR JOBS HERE
Amazing success rates!
 
Advertise your jobs on Service Dealer Weekly Update

Advertise your recruitment needs on Serivce Dealer Weekly Update Ireland and reach our targeted audience of recipients every week.

Contact Nikki Harrison for details - 44 01491 837117


Sponsored Product Announcements
SHOWCASE YOUR NEW PRODUCTS HERE
Have your new equipment seen first!
 
Showcase your new products on Service Dealer Weekly Update

Use this Ireland Weekly Update to showcase your new products to our ever-growing community of specialist dealers.

Contact Nikki Harrison - 44 01491 837117


Side Advert Image
SIDE ADVERT

PARTNERS
STIHL GB
 
STIHL GB
ASPEN FUEL
 
Aspen
Bagma
 
BAGMA
Catalyst Computer Systems
 
Catalyst Computer Systems
Evopos
 
Evopos
GardenCare
 
GardenCare
Grizzly Tools
 
Grizzly Tools
Handy Distribution
 
Handy Distribution
Henton & Chattell
 
Henton & Chattell
Husqvarna
 
Husqvarna
Robotmower
 
Robotmower
Rochford Garden Machinery
 
Rochford Garden Machinery
Stens
 
Stens
uni-power
 
uni-power
TurfPro
 
TurfPro
PRODUCED BY THE AD PLAIN