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Thread: Arla

  1. #361
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    Smile Re: Arla

    Quote Originally Posted by Cornishfarmer View Post
    What's the letter say fob?
    .78ppl increase via constituent values, which takes our standard litre to 33.83ppl . Well done ARLA.
    Last edited by dinderleat; 23-10-13 at 10:09 PM.

  2. #362
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    Re: Arla

    Why is it so hard for some of you to work out your Price. It is clear in the letter it is added onto the constituent pricing. I suggest you all get used to constituent pricing as I suspect even milk going to liquid markets will change to a constituent based contract as they want the fat they skim off to make butter at west bury.

  3. #363
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    Re: Arla

    Quote Originally Posted by jerseycowsman View Post
    Why is it so hard for some of you to work out your Price. It is clear in the letter it is added onto the constituent pricing. I suggest you all get used to constituent pricing as I suspect even milk going to liquid markets will change to a constituent based contract as they want the fat they skim off to make butter at west bury.
    Don't think fir tree was meaning it that way, more of a long the lines of how .78ppl was divided between fat and protein. Would have to go further than you and say to get rid of a liquid contract totally. Also i would like to think they will get rid of the bloody market related adjustment and be solely based on fat and protein.

  4. #364

    Re: Arla

    Quote Originally Posted by dinderleat View Post
    Don't think fir tree was meaning it that way, more of a long the lines of how .78ppl was divided between fat and protein. Would have to go further than you and say to get rid of a liquid contract totally. Also i would like to think they will get rid of the bloody market related adjustment and be solely based on fat and protein.
    correct,it is no problem doing the calculation just finding out the facts, how do you know how the .78 has been allocated. I suspect that the different contracts receive different letters and that is why to some it appears a none problem.I agree completely that the liquid contract should be finished immediately as it disadvantages those on consitutient contracts as it is easier for liquid producers to achieve the full price. There should be no factory or regional preiums either (I should be on both if there is going to be)and I will be brave and say no breed premiums either , every body on same rate ,we all pay the same membership costs per litre so should all receive the same benefit. I am sure many will disagree but we should all be equals

  5. #365
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    Re: Arla

    Quote Originally Posted by fir tree View Post
    correct,it is no problem doing the calculation just finding out the facts, how do you know how the .78 has been allocated. I suspect that the different contracts receive different letters and that is why to some it appears a none problem.I agree completely that the liquid contract should be finished immediately as it disadvantages those on consitutient contracts as it is easier for liquid producers to achieve the full price. There should be no factory or regional preiums either (I should be on both if there is going to be)and I will be brave and say no breed premiums either , every body on same rate ,we all pay the same membership costs per litre so should all receive the same benefit. I am sure many will disagree but we should all be equals

    There is, and there never has been a breed premium within the ML / AML group. I suppose you are referring to the Channel Island contract (which I am on) that has always paid out at somewhere between slightly less and significantly less that the manufacturing contract on a solids basis. There has been no time in the past 5 years where i would not has recieved a larger milk cheque on the standard manufacturing contract than on the CI contract but ML senior bodies would not allow us to move.

    When the roadmap to full membership was announced at the end of the summer the CI contract was completely re-written to put us on level standing with the swedes and danes. This involved taking, i think 8p of the litreage payments and putting them on the fat and protein values resulting in nearly a 3ppl price rise for me which was of course fantastic news and well ahead of when we expected it. However the past 2 pice rises of 0.74 and 0.78 have been equal across all contracts so in effect we have again seen a smaller price rise than manufacturing contract.

    Apart from a tiny minority of breed purists who think CI milk needs separate collection the rest of us cannot wait to see the back of the CI contract so that we truly are all equal

  6. #366
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    Re: Arla

    Quote Originally Posted by fir tree View Post
    correct,it is no problem doing the calculation just finding out the facts, how do you know how the .78 has been allocated. I suspect that the different contracts receive different letters and that is why to some it appears a none problem.I agree completely that the liquid contract should be finished immediately as it disadvantages those on consitutient contracts as it is easier for liquid producers to achieve the full price. There should be no factory or regional preiums either (I should be on both if there is going to be)and I will be brave and say no breed premiums either , every body on same rate ,we all pay the same membership costs per litre so should all receive the same benefit. I am sure many will disagree but we should all be equals
    Would have to agree with you on all fronts.

  7. #367
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    Re: Arla

    Grass farmer, I totally agree with you about getting shot of the silly CI contract, it just put us at a disadvantage all the time. But I think the last 2 price rises have been on constituents, so the higher your fat and protein the higher your price rise. The .78 will actually equate to near 1ppl for me. Tell me if I am wrong.

  8. #368

    Re: Arla

    Quote Originally Posted by jerseycowsman View Post
    Grass farmer, I totally agree with you about getting shot of the silly CI contract, it just put us at a disadvantage all the time. But I think the last 2 price rises have been on constituents, so the higher your fat and protein the higher your price rise. The .78 will actually equate to near 1ppl for me. Tell me if I am wrong.
    There was some confusion in letters and information, instructions from higher up were misunderstood lower down. Now sorted, you will be paid the same as manufacturing for October and November.

  9. #369
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    Re: Arla

    After a lot of complaining about milk price back along on this thread, including some by me, i would like to say well done and thank you to Arla milklink for paying me 48.3ppl last month...............


    ............just a shame there wasn't very much of it!

  10. #370

    Re: Arla

    Good price that, what was you f and p to get that price?

  11. #371
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    Re: Arla

    Only 1300 members signed up to amba wonder if they find another 300. I suppose it will be good for the owners if we can keep the 300 as directs which will mean more turnover and hopefully more profit.

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    Re: Arla

    1300 is a great number! Those who did not choose to become owners of this very successful co-op will have made their own choice for their unique circumstances.

  13. #373
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    Re: Arla

    No price change for December, hopefully we might get a Christmas present from Arla next month.

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    Re: Arla

    Quote Originally Posted by grassfarmer View Post
    After a lot of complaining about milk price back along on this thread, including some by me, i would like to say well done and thank you to Arla milklink for paying me 48.3ppl last month...............


    ............just a shame there wasn't very much of it!

    Can you tell us what the bases for fat and protein are, and what the bonus is for each?

  15. #375
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    Re: Arla

    I don't think there is a minimum base and there certainly is no bonus, just get paid so many pence per percent of fat and protein. So the higher the quality of milk you send, the more you get paid. And the less water gets transported around the countryside

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    Re: Arla

    Quote Originally Posted by DairyFarmer111 View Post
    Can you tell us what the bases for fat and protein are, and what the bonus is for each?
    Off the top of my head i think we did 6.6 and 4.6, i'll check in the office tomorrow and alter if incorrect

    The price is mostly solids based but also

    +0.5 bacto
    +0.2 scc
    +0.5 production bonus
    + ? market related adjustment
    +3.5 seasonality

    Last 2 tests have been 7.2 and 4.8 and scc has been................................well who cares about cells when solids are that high!

  17. #377
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    Re: Arla

    How much do you get paid for base litres and fat and protein?

  18. #378
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    Re: Arla

    Quote Originally Posted by bigw View Post
    How much do you get paid for base litres and fat and protein?
    there aint no base litres.
    we got 2.433 pence per percent of Fat and 4.778 pence per percent of protein.
    Although there is this silly buisness market related payment of 5.84ppl, paid regardless of what quality milk i send them, so that discourages me from pushing my fats and proteins too much

  19. #379
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    Re: Arla

    We were contacted by ARLA yesterday & sent through the January milk schedule ............ Looks very tempting for high constituent milk!

    Can anyone suggest any pitfalls of joining other than the fact that my current creamery is only 6 miles down the road & would look after me if there is a bulk tank problem?

  20. #380

    Re: Arla

    Are you supplying glanbia or south carnarfon? What are they paying per % of fat And protein?

  21. #381
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    Re: Arla

    Quote Originally Posted by jersey welshman View Post
    Are you supplying glanbia or south carnarfon? What are they paying per % of fat And protein?
    Glanbia

    3.190p per % BF
    5.234p per % protein

  22. #382
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    Re: Arla

    Quote Originally Posted by grassfarmer View Post
    Off the top of my head i think we did 6.6 and 4.6, i'll check in the office tomorrow and alter if incorrect

    The price is mostly solids based but also

    +0.5 bacto
    +0.2 scc
    +0.5 production bonus
    + ? market related adjustment
    +3.5 seasonality

    Last 2 tests have been 7.2 and 4.8 and scc has been................................well who cares about cells when solids are that high!

    Come on - all good and well looking at the stars, but put this into perspective with No_ of cows/breed and feed costs!!

    Face it anyone can adjust their system to maximise a pence per litre return, but this often is at the expense of volume (my guess here) or at huge input costs!


    All of these PPL's being quoted are irrelevant, what is REALLY important is where the ARLA price sits in the Milk Buyers League table going forward, and how this reacts to the 'standard' input costs changing like energy/feed etc etc

  23. #383
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    Re: Arla

    Quote Originally Posted by Einstien View Post
    Come on - all good and well looking at the stars, but put this into perspective with No_ of cows/breed and feed costs!!

    Face it anyone can adjust their system to maximise a pence per litre return, but this often is at the expense of volume (my guess here) or at huge input costs!


    All of these PPL's being quoted are irrelevant, what is REALLY important is where the ARLA price sits in the Milk Buyers League table going forward, and how this reacts to the 'standard' input costs changing like energy/feed etc etc

    You should probably shout that a bit louder, or better still next time there a milk price protests go and tell the farmers there! I would say the the main reason that our industry as a whole is not more profitable is that the vast majority are locked into high input, high cost systems that are too exposed to external costs, mainly feed, so that although they are producing big volumes is is at a very small margin or quite frequently a negative margin.

    I said in the original post that i wasn't producing a lot

    220 spring calving jerseys
    currently doing 11 litres
    feeding 7 kg DM maize silage, 5 kg DM grazed grass, 2 kg 20% cake

    Still gives me about 4.90 MOPF per cow and we start drying off big numbers over the next couple of weeks

  24. #384

    Re: Arla

    Quote Originally Posted by grassfarmer View Post
    You should probably shout that a bit louder, or better still next time there a milk price protests go and tell the farmers there! I would say the the main reason that our industry as a whole is not more profitable is that the vast majority are locked into high input, high cost systems that are too exposed to external costs, mainly feed, so that although they are producing big volumes is is at a very small margin or quite frequently a negative margin.

    I said in the original post that i wasn't producing a lot

    220 spring calving jerseys
    currently doing 11 litres
    feeding 7 kg DM maize silage, 5 kg DM grazed grass, 2 kg 20% cake

    Still gives me about 4.90 MOPF per cow and we start drying off big numbers over the next couple of weeks
    Your right there grassfarmer, i make more litres per acre with our jerseys than what we did with the holsteins just you can keep more cows per acre, the only downfall are the cull price and beef calf value.

  25. #385
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    Re: Arla

    Quote Originally Posted by grassfarmer View Post
    You should probably shout that a bit louder, or better still next time there a milk price protests go and tell the farmers there! I would say the the main reason that our industry as a whole is not more profitable is that the vast majority are locked into high input, high cost systems that are too exposed to external costs, mainly feed, so that although they are producing big volumes is is at a very small margin or quite frequently a negative margin.

    I said in the original post that i wasn't producing a lot

    220 spring calving jerseys
    currently doing 11 litres
    feeding 7 kg DM maize silage, 5 kg DM grazed grass, 2 kg 20% cake

    Still gives me about 4.90 MOPF per cow and we start drying off big numbers over the next couple of weeks
    Don't tar us all with the same brush every farm is different what works for one won't work for another, but I wish my butter fat and protein was that high. Ours is only 4.28 and 3.38 but cows are doing 29lts a day.

  26. #386
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    Re: Arla

    Quote Originally Posted by dinderleat View Post
    Don't tar us all with the same brush every farm is different what works for one won't work for another, but I wish my butter fat and protein was that high. Ours is only 4.28 and 3.38 but cows are doing 29lts a day.
    That kind of talk winds me up no end, too. There is no right answer. What works for one may not work for another.

    I believe a lot of people are quick to badmouth the 'high input' system (what that officially is mind, is open to debate) on the basis that it is very difficult to get it right, therefore it must be rubbish.

    Then I actually speak to some of those doing it and realise they are quite happy making the margins that they do, thank you very much for asking...? If I piped up in my youthful enthusiasm and suggested actually spring calving eat grass etc etc etc, I would probably be shot on the spot.

    It is also worth knowing that it is rather more difficult to get very high fats/protein AND yields all at once, since the sheer grunt required to make 30 litres of something with 4% fat as opposed to 30 litres of something with 3% is pretty substantial- milk fat is highly energy dense.

  27. #387
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    Re: Arla

    Right - so at least we all agree that the Price Per Litre Value comparison between farmers is irrelevant, the system is often based around the physical properties of the farm i.e. how many acres, is the ground wet, silage clamps etc etc etc

    What really matters in the ARLA vs Others debate is, if you sold the same milk to someone else would you get more money!


    Someone said "well done ARLA for paying me 48ppl" - Well I would say be careful, I would almost guarantee that the exact same milk would have returned over 50ppl just by selling to another buyer without you doing anything different...! Still happy/boasting?

    This is the real problem - I think the gap may have closed recently, but the problem going forward will be that this gap between selling direct and to a co op doesn't ever (I debate whether it could ever) be a positive gap for the producers?????

  28. #388
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    Re: Arla

    At the current prices i would think Arla amba co op have edged in front of most milk buyers, but wether it will stay there for 12 months is what matters.

  29. #389
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    Re: Arla

    Quote Originally Posted by Einstien View Post

    What really matters in the ARLA vs Others debate ...............
    So back to it:

    We have been pushed hard to sign to ARLA & fair do's, they have really up the price on butterfat to make their offer look a "no brainer" BUT if we resigned our current contract, we would not be in a position to supply until April 2015 and I wonder what the price will be then? As their price will be based on the exchange rate of the Danish Krone, there is likely to be high highs & low lows in comparison to other UK prices. SO with an embryonic dairy business, we cannot afford to take the risk or lose 1ppl to our membership loan repayment.

  30. #390
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    Re: Arla

    I have no real issue with high input dairying, its just really not for me. What i was objecting to was was the ridiculous comment that anyone can make a pence per litre margin. If this was the case then surely no one would ever lose money!

    I like my lower input system because i think i can adjust to to market more easily. If the market really crashed i could go once a day milking, cut purchased feed completely out, shed casual labour and just really get my costs of production down to the bone in order to survive. As it is i am actually going to keep more cows next year and feed more cake to make the most of the good price while it lasts.

    I am happy with the price i receive for my milk, hence why i said well done Arla. The main reason i said it though was because the vast majority of comments on this thread are negative ones. I have always been a big supporter of milk link and and have been in favour of the Arla merger. There is at least 1 AML director who reads this forum regularly and several council members and i think they often only hear the critics and dont get many thankyou's for all the hard work they put in.

    I think the ARLA AMBA co-op presence in the UK will change the milk market in this country for ever but i do not think that the Arla price will necessarily top the market very often. I think that we will consistently be in the top half of the milk price table but i think that some supermarket liquid contracts will always be 1ppl or so higher whatever Arla are paying because they will have to be if they want the milk.

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