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Thread: Arla

  1. #331

    Re: Arla

    Quote Originally Posted by Uwork4menow View Post

    Talk of profit share is all well and good but ultimately regardless of end use or who owns a business, profit is related to cost, market conditions and how effective a company is at doing what it does. Unfortunately greater profit is easily obtained by paying less for the milk they want, so you'd get a lower milk price but a higher profit share or vice versa. If that sum is greater than what you can get for selling your milk to someone else then you are on to a winner. If not...
    That is all quite correct, the owners get the profit, but in a co-op that is the producers whereas in a PLC such as DC it is the shareholders and with Muller wiseman it is Theo Muller and his family. There is nothing wrong with that, it is a fair return for ownership.

  2. #332

    Re: Arla

    Quote Originally Posted by BMEH View Post
    Will they have a base year for the 7.5ppl?

    Otherwise with altering production and on some units ever increasing production the goalposts will constantly be moving?

    Can you borrow the money yourself and become a full member with the 13th payment immediately?




    I doubt there would be any point. I can see that if you planned to expand massively it might seem attractive. I don't know the answer but I do know that there is a limit of 5ppl on your individual capital account, once you reach that no more is added, but it is paid out as extra 13th payment. Therefore if you increase production your individual capital account will again be increased rather than paid out. The contribution to the individual capital account is in the order of 0.5 ppl/year so if you have reached the 5ppl limit and then increased production by 10% you have all the 0.5ppl retained in the following year. If you increased by 5% then 0.25ppl would be retained in your individual capital account and 0.25ppl paid out. This is on top of the 13th payment.


    Therefore it would only be of benefit on the amount due to the general capital reserve at most, so I expect the benefit would be marginal of paying early.

  3. #333
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    Re: Arla

    .74ppl increase, Well done Arla keep returning the money to its members.

  4. #334

    Re: Arla

    Quote Originally Posted by dinderleat View Post
    .74ppl increase, Well done Arla keep returning the money to its members.
    From 30th September taking standard litre to just over 33ppl

  5. #335

    Re: Arla

    How are Arla going to maintain their 13th payment at is current level if 1500 new members join?

    Ash spent a lot of time talking about the 'milk wheel' in the meetings and how it was important to continue to grow their milk volumes to drive profits, and returns to members. But if the current AFMP members join in the next 12 months the milk pool does not actually increase. Where is the increased profit coming from to pay to these new members as 13th payment, or does it have to be smaller?

  6. #336

    Re: Arla

    Quote Originally Posted by bramble View Post
    How are Arla going to maintain their 13th payment at is current level if 1500 new members join?

    Ash spent a lot of time talking about the 'milk wheel' in the meetings and how it was important to continue to grow their milk volumes to drive profits, and returns to members. But if the current AFMP members join in the next 12 months the milk pool does not actually increase. Where is the increased profit coming from to pay to these new members as 13th payment, or does it have to be smaller?
    Effectively you are right. The profit is set at 3% of turnover. So if the turnover does not increase but the more litres are eligible for the thirteenth payment then as you say it is lower. But that was taken into account in the estimated thirteenth payment of 1.25 ppl that was talked about at the meetings ,last year it was around 1.7ppl so the estimate is actually probably a bit pessimistic. But remember we have a new more efficient liquid dairy about to come on line plus the integration of the cheese business, building the anchor cheese and butter brands and making much better use of whey proteins will drive milk price in the future. So what we don't get retained in profit will be paid out in on-account price. That is where the business is confident of making up for the 0.5ppl the Danes, Swedes and Germans will lose in thirteenth payment over the next 2 years.

  7. #337
    Senior Member fergieman's Avatar
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    Re: Arla

    AFMP are very quiet on the pricing front.

  8. #338
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    Re: Arla

    Quote Originally Posted by fergieman View Post
    AFMP are very quiet on the pricing front.
    Likewise Tesco.

    I wonder if they're working out how to keep pace with Sainsburys price and MW's formulae price.

  9. #339
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    Re: Arla

    So - Phone call from ARLA on Friday, saying Board Decision - if members don't rescind their notice by the 15th November, there is NO guarantee that they will obtain a contract post next March, I'm relatively positive about ARLA at the moment, BUT do not like this scaremonger tactic!!


    Followed on Saturday, by a Marketing Postcard from Arla, glossy print pretty much saying 'Please Send us your Milk'


    Ironic hey! One message back to ARLA, no amount of glossy marketing would go as far as being at the top of the Milk Payment league table!!!!!

  10. #340
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    Re: Arla

    Quote Originally Posted by Einstien View Post
    So - Phone call from ARLA on Friday, saying Board Decision - if members don't rescind their notice by the 15th November, there is NO guarantee that they will obtain a contract post next March, I'm relatively positive about ARLA at the moment, BUT do not like this scaremonger tactic!!


    Followed on Saturday, by a Marketing Postcard from Arla, glossy print pretty much saying 'Please Send us your Milk'


    Ironic hey! One message back to ARLA, no amount of glossy marketing would go as far as being at the top of the Milk Payment league table!!!!!
    Surely if a members got his notice in he will be glad not to have a arla contract by march ?

  11. #341
    Senior Member fergieman's Avatar
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    Re: Arla

    Quote Originally Posted by Einstien View Post
    So - Phone call from ARLA on Friday, saying Board Decision - if members don't rescind their notice by the 15th November, there is NO guarantee that they will obtain a contract post next March, I'm relatively positive about ARLA at the moment, BUT do not like this scaremonger tactic!!


    Followed on Saturday, by a Marketing Postcard from Arla, glossy print pretty much saying 'Please Send us your Milk'


    Ironic hey! One message back to ARLA, no amount of glossy marketing would go as far as being at the top of the Milk Payment league table!!!!!
    Quote Originally Posted by big philip View Post
    Surely if a members got his notice in he will be glad not to have a arla contract by march ?

    I think Einstien means new contract signed and in by 15th Nov.

  12. #342
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    Re: Arla

    Quote Originally Posted by fergieman View Post
    I think Einstien means new contract signed and in by 15th Nov.
    I think you maybe wrong, fergieman - surely if a supplier had their notice in they would already have rescinded it if the intention to join the coop was there.

    My notice remains in, and runs to the end of april. I'm sure my new buyer will happily take my milk a month early, should Arla get arsey.

  13. #343

    Re: Arla

    It is right that there is a dead line. The reason is because there is a top limit on volume to the AFMP deal for entry of 1.8billion litres, plus replacing any leavers. By Nov 15 the AFMP and directs need to decide but also any potential leavers. This is because we have a large waiting list from farmers from outside wanting to take the place of any AFMP or, directs or leavers to reach the 1.8 billion. It would be daft to turn down farmers wanting to join and then find the farms on notice do not rescind, equally we are not supposed to exceed the limit agreed in the entry deal. Therefore it seems sensible to ask suppliers and owners on notice to make a firm decision. It maybe we don't reach the top limit and it would still be possible to rescind notice later but it seems doubtful, given some of the issues in the industry working there way out at the moment.

    moors farmer- it made sense for any AML owners to wait until the deal giving them the 13th payment was confirmed before rescinding, particularly as it showed them what they wanted- a flexible positive response to there concerns.

  14. #344
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    Re: Arla

    So are you saying that there is now a waiting list of people outside the partnership wanting to join to join amba? How many litres approx do you have so far? Or is this just another Arla tale to put pressure on everyone. If it gets opened up how will you decide who is signed? Will it just be on a first come, first served basis?

  15. #345

    Re: Arla

    Quote Originally Posted by Disco View Post
    So are you saying that there is now a waiting list of people outside the partnership wanting to join to join amba? How many litres approx do you have so far? Or is this just another Arla tale to put pressure on everyone. If it gets opened up how will you decide who is signed? Will it just be on a first come, first served basis?
    I don't know the figures, but there has been a lot of interest, I know of half a dozen large farmers in my local area and I gather there is more interest in other areas. There were quite a few farmers from outside at the meetings around the country over the last few weeks. Obviously it makes most sense to offer entry to farmers who are closer to where milk is required, but that includes around the cheese factories, including Lockerbie and Llandyrnog as well as milk for Aylesbury that could easily come up the M4.

    I don't see it as pressure, I just see it about being fair. How would you feel if you decided to rescind your notice on Dec 1 and were told, 'sorry no can do' with no prior warning? What the owner or supplier chooses is up to them and if we are not full, they may still have the option, but I have my doubts.

  16. #346
    Senior Member fergieman's Avatar
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    Re: Arla

    Quote Originally Posted by fergieman View Post
    I think Einstien means new contract signed and in by 15th Nov.
    Quote Originally Posted by Moors Farmer View Post
    I think you maybe wrong, fergieman - surely if a supplier had their notice in they would already have rescinded it if the intention to join the coop was there.

    My notice remains in, and runs to the end of april. I'm sure my new buyer will happily take my milk a month early, should Arla get arsey.
    Yes you are right, I hadn't picked up on the supplier having notice already in. Still the same timeline though 15th November wether you have notice in or not for a guaranteed membership position.

  17. #347
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    Re: Arla

    Quote Originally Posted by fergieman View Post
    Yes you are right, I hadn't picked up on the supplier having notice already in. Still the same timeline though 15th November wether you have notice in or not for a guaranteed membership position.
    I hear lots of first milk members are wanting to join arla European co-op .

  18. #348
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    Re: Arla

    Quote Originally Posted by big philip View Post
    I hear lots of first milk members are wanting to join arla European co-op .
    You cant really blame them, can you? If you're in the dairy job for the long term, and you want to be in a coop it's undoubtedly the way to go.

    Anybody want any MPL shares? - at a good price?

    Seriously though, a question for Farmer on a bike - I appreciate you've come into this AML business via Milk Link - but you're insight would be most interesting. Why the disparity between the "in" price (ie 1 = 1 share) and the "out" price (ie 1share = 30p)? Also, do you think MPL shares are likely to be tradeable outside of the new alliance - or within, for that matter?

    Thanks.

  19. #349

    Re: Arla

    Quote Originally Posted by Moors Farmer View Post
    You cant really blame them, can you? If you're in the dairy job for the long term, and you want to be in a coop it's undoubtedly the way to go.

    Anybody want any MPL shares? - at a good price?

    Seriously though, a question for Farmer on a bike - I appreciate you've come into this AML business via Milk Link - but you're insight would be most interesting. Why the disparity between the "in" price (ie 1 = 1 share) and the "out" price (ie 1share = 30p)? Also, do you think MPL shares are likely to be tradeable outside of the new alliance - or within, for that matter?

    Thanks.
    I don't know the details of the agreement that has been agreed between the MPL board and Arla. It is very much separate to AML, so any comments about how the share value is calculated would only be guess work and opinion so I think I had better not comment. Having read the documents of the offer, as I understand it, MPL finishes and becomes a co-operative called AmCo so I would assume the shares of MPL cease to exist so I don't see how they could be tradeable. The situation is very different to how Milklink merged with Arla, even if the end result is the same.

  20. #350
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    Re: Arla

    Quote Originally Posted by Farmer on a bike View Post
    I don't know the details of the agreement that has been agreed between the MPL board and Arla. It is very much separate to AML, so any comments about how the share value is calculated would only be guess work and opinion so I think I had better not comment. Having read the documents of the offer, as I understand it, MPL finishes and becomes a co-operative called AmCo so I would assume the shares of MPL cease to exist so I don't see how they could be tradeable. The situation is very different to how Milklink merged with Arla, even if the end result is the same.
    I thought that would likely be the case, Foab. Thank you for the reply, though.

  21. #351
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    Re: Arla

    Any news on milk price?

  22. #352

    Re: Arla

    Quote Originally Posted by dinderleat View Post
    Any news on milk price?
    would that be news on octobers price or on nov ??
    think that they should do octobers before they get round to november

  23. #353
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    Re: Arla

    Quote Originally Posted by fir tree View Post
    would that be news on octobers price or on nov ??
    think that they should do octobers before they get round to november
    Did we not get one on the last day of september or were you expecting another?

  24. #354

    Re: Arla

    Quote Originally Posted by fir tree View Post
    would that be news on octobers price or on nov ??
    think that they should do octobers before they get round to november
    Post #333 above. Nov price will be announced soon.

  25. #355

    Re: Arla

    Quote Originally Posted by Farmer on a bike View Post
    Post #333 above. Nov price will be announced soon.
    yes I read that and the letter dated 23 sept 2013 and neither tell me what my milk price is.just to point out I am not telepathic and can not work out how it has affected the price as it just says "a change in the constituent payments" Why do you have to hide the price structure ,have got fed up of making suggestions about these letters clearly no body listens or has another agender . I am already expecting the reply that it is to much work to keep members correctly informed or the computer missed a bit out of the letter.

  26. #356
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    Re: Arla

    Quote Originally Posted by fir tree View Post
    yes I read that and the letter dated 23 sept 2013 and neither tell me what my milk price is.just to point out I am not telepathic and can not work out how it has affected the price as it just says "a change in the constituent payments" Why do you have to hide the price structure ,have got fed up of making suggestions about these letters clearly no body listens or has another agender . I am already expecting the reply that it is to much work to keep members correctly informed or the computer missed a bit out of the letter.
    Speak to someone at the link Line/Arla line and i'm sure they will send you some info, thats what there for.

    Normally we get a letter about milk price after the 3rd thursday of the month.

  27. #357

    Re: Arla

    Quote Originally Posted by dinderleat View Post
    Speak to someone at the link Line/Arla line and i'm sure they will send you some info, thats what there for.

    Normally we get a letter about milk price after the 3rd thursday of the month.
    did that and they were unable to confirm the price that was at the beginning of October when I rang to confirm what quality they would be using for sept payment,i like to work out my own price to keep an eye on things just like I check goods deliveries and invoices.intresting to note that the last 4 mths I have been paid for the wrong quality,i don't produce the results just cross reference them with the information they send me so why is it wrong?how many others are wrong, how many bother to check ,I know some directors don't bother to monitor there own



    ps why should I have to ring them to find out the facts why cant they put it in the letter it would cost pence to tell us all rather than having to have a larger link line to tell us .sent the linkline a email it took 4wks to get a reply and still unable to give me the information I needed to know.I thought that arla were surpost to be efficent

  28. #358
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    Re: Arla

    I was also unclear about how the last price increase would be implemented after reading the text/letter. I rang the Linkline, asked politely for a new pricing schedule which was emailed to me by the end of the day so I could update my own pricing spreadsheet which I use. Nearly 44ppl for my conventional Oct milk. Nice to see the co-op returning such a good price and take the highs with the lows.

    Cowski

  29. #359

    Re: Arla

    Quote Originally Posted by fir tree View Post
    did that and they were unable to confirm the price that was at the beginning of October when I rang to confirm what quality they would be using for sept payment,i like to work out my own price to keep an eye on things just like I check goods deliveries and invoices.intresting to note that the last 4 mths I have been paid for the wrong quality,i don't produce the results just cross reference them with the information they send me so why is it wrong?how many others are wrong, how many bother to check ,I know some directors don't bother to monitor there own



    ps why should I have to ring them to find out the facts why cant they put it in the letter it would cost pence to tell us all rather than having to have a larger link line to tell us .sent the linkline a email it took 4wks to get a reply and still unable to give me the information I needed to know.I thought that arla were surpost to be efficent
    You points are well made and valid, but too late to get any change in the way the letter is written this month as I think it went in the post tonight. The only reason I can see is the number of different contracts each requiring different letters, the more detail in each the more chance of a cock up. The target is to reduce the number of contracts and to simplifying the pricing so it is closer to Arla amba.

  30. #360

    Re: Arla

    What's the letter say fob?

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