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Thread: Arla

  1. #31

    Re: Arla

    Quote Originally Posted by Iron150 View Post
    Just wondering when will the milk link members start getting the 13th payment, and typically how much is this as a ppl, or will it vary a lot year on year,
    ]
    Current agreement is that we start to accumulate it from Jan 2016, payment will vary with milk price as detailed above, this year it will be around 2 euro cents from memory. The bit in the last owner news letter explains it a bit more, there will be member meetings in march where I think it will all be gone through in detail.

  2. #32

    Re: Arla

    Quote Originally Posted by Farmer on a bike View Post
    yes, I should have added to my point about the profit in a co-op being what is needed/decided that in Arla it has been decided that it will be 3%. The consolidation is the part used to pay for capital investment and that is 4.5% of total price paid out.
    As for your second statement that is correct, I know that, since I asked that question to the CEO at the last BoR meeting, which was reported in the owner update. But obviously it impacted on us all the same, as we are all getting the same price (except 13th payment ,in case someone states the obvious.
    it has not impacted us all the same ,as we have not had the average price for the year but the price for the second half when the price was lower to enable the profit margin to be built to the required amount,by moving the pricing around they have influnced what we recvied,it is my beleif that they knew what they were doing and i stated at our merge meeting that manipulation of the price downwards was possible and i was assured that they wouldnt do it but they have .it is also possible for them to keep doing it via a slightly different way right up to the time when we become full members and i dont think theres is any cap on how much they can do it apart from members abroad being able to stand the cash flow implications.

  3. #33

    Re: Arla

    Quote Originally Posted by Farmer on a bike View Post
    Current agreement is that we start to accumulate it from Jan 2016, payment will vary with milk price as detailed above, this year it will be around 2 euro cents from memory. The bit in the last owner news letter explains it a bit more, there will be member meetings in march where I think it will all be gone through in detail.
    are you confused it was only proposed by the directors yesterday you have to vote on it next wed /thur to aprove it.
    the 1st 13th payment members recieve will not be till march 2017(you will start to acumalate it from an 2016) unless we get it changed!!!

  4. #34
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    Re: Arla

    Thought we were full arla amba members October 2015 not march 2017!!!!!

  5. #35
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    Re: Arla

    Full arla amba mugs more like im afraid !!!

  6. #36
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    Re: Arla

    Quote Originally Posted by big philip View Post
    Full arla amba mugs more like im afraid !!!
    Nothing like kicking a man in b#*#s when he's down(or several men)!

  7. #37

    Re: Arla

    Quote Originally Posted by fir tree View Post
    are you confused it was only proposed by the directors yesterday you have to vote on it next wed /thur to aprove it.
    the 1st 13th payment members recieve will not be till march 2017(you will start to acumalate it from an 2016) unless we get it changed!!!
    Yes I know it is a proposal until next week, but I have seen the amount proposed but didn't have it to hand when answering, so was answering from memory. Why the effort to try and trip me up, I'm only trying to help explain things.

  8. #38

    Re: Arla

    Quote Originally Posted by dinderleat View Post
    Thought we were full arla amba members October 2015 not march 2017!!!!!
    From Jan 2016. 3.5 years from vote. Start accumulating 13th payment from then, but actually receive the 13th payment in march 2017.

  9. #39
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    Re: Arla

    Quote Originally Posted by Farmer on a bike View Post
    From Jan 2016. 3.5 years from vote. Start accumulating 13th payment from then, but actually receive the 13th payment in march 2017.
    Half the dairy farmers in the uk will of died of old age by then!!

  10. #40

    Re: Arla

    I am not trying to trip you up .what we want is your support to sort this mess out. I can admit that I got took in originally by the PR and made the wrong decision in the vote (we needed more facts ,debate and time before the vote but it was rushed through) can you? I have asked several times for information and no one at milk link will give it out.

  11. #41

    Re: Arla

    Dinderleat you have been caught like I was the wording was " a transitional period will apply commencing on the date of the members vote and ending on 31 December2015 during which members will not receive the full arla performance price " and this is were you get 2015 from which is correct but it is the end date date. do you understand the arla performance price that you will receive from then.It includes consolidated common capital which at current I believe is 3% of the "performance price"you will not get that as it is left in the co-op ,as I understand ityou will only stand any chance of getting it if the co-op is sold ,so not very likely.do not confuse this with individual capital as this has different rules.how it can be called the price I think stretches my dictionary definition to the limit.If any of this is incorrect farm on a bike will be along to correct it but I think it is right

  12. #42
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    Re: Arla

    Why was this rushed anyhow ? surely something as big as this should have taken time or did arla rush it ?

  13. #43
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    Re: Arla

    Quote Originally Posted by big philip View Post
    Why was this rushed anyhow ? surely something as big as this should have taken time or did arla rush it ?
    Arla need the milk.

  14. #44
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    Re: Arla

    My gut feeling is there was a sense of panic from Arla that they were going to have a new factory and no milk. At least with Milklink it might not be just where they want it, but at least they had some milk.

  15. #45

    Re: Arla

    Quote Originally Posted by happycows View Post
    My gut feeling is there was a sense of panic from Arla that they were going to have a new factory and no milk. At least with Milklink it might not be just where they want it, but at least they had some milk.
    they still have the milk until we do something about it,they didn't come over here to make themselves poorer

  16. #46

    Re: Arla

    Quote Originally Posted by big philip View Post
    Why was this rushed anyhow ? surely something as big as this should have taken time or did arla rush it ?
    It was not rushed, the work behind the scenes was going on for over a year. Once it was made public both companies are immediately in limbo until a decision is made, staff would feel very worried about jobs etc. It would be very destructive to draw out the public process too long. Once the directors and executive were sure it was the right deal then they presented it to the members of milklink (and owners of Arla) to decide.

  17. #47

    Re: Arla

    Quote Originally Posted by fir tree View Post
    I am not trying to trip you up .what we want is your support to sort this mess out. I can admit that I got took in originally by the PR and made the wrong decision in the vote (we needed more facts ,debate and time before the vote but it was rushed through) can you? I have asked several times for information and no one at milk link will give it out.
    You have a good understanding of the pricing system but your conclusions are in my view totally wrong. This is still the right deal. I know you don't believe me, but it is quite clear we would only be in a marginally better price position now if we had stayed as we were. 0.5ppl at most. We had the pension issue that would have caused significant price drag going forwards. The execs and directors had identified that it was not sensible to stay as we were. We were too big to be a niche player and too small to compete internationally. If you look at the current cheese market, yes the mature cheddar and speciality cheese is doing OK but the medium and mild markets are under heavy competition from Ireland and it is companies exposed in that area such as Milklink ( now arla) and first milk who are finding more difficult to increase cheese prices in that area. We need to develop branded cheddar sales, tickler has been successful but is an extra mature premium brand, we need a mature brand and that takes money to develop.

    We have been unfortuate with the timing, over the last 5 years the arla on account price has been ahead of the milklink price in all but a few months. I have been dairy farming for 25 years and over that time the UK has almost always been at the bottom of the european price league. Do you really think that has permanently changed?

    As a further thought, at the time of the deal the critics were saying that this was all so the execs and directors got more money. Out of the nine board directors (execs & non-execs) only 2 are left and they are on half the pay. They all expected and knew that but still believed it was the right deal for the members, so went for it.

  18. #48

    Re: Arla

    it was rushed through the members stage we had less than a week to listen to the presentation and ask questions before the vote.

  19. #49
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    Re: Arla

    I believe in the long term it was the right decision, but for those who do not wish to wait I believe they will leave. Would the original members of arla kick up a fuss if our price was 4 pence over the uk price ?

  20. #50
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    Re: Arla

    So who's actually handed their notice in yet? Ours will definately be in if they return from Sweden with little, or worse still nothing.

  21. #51

    Re: Arla

    FOB
    my conclusions may be wrong, but only time will tell and that will only tell half the story because we will never know for sure what milk link could have done onits own .
    As to the pension fund causing a drag i am amazed at that deal if it is as good as it is told ,the other parties must be very concerned.
    over the last 5 years the UK may have been at the bottom of the european league ,but several things have happened.we have had several merges /takeovers of various players we were always told that this would improve the market place and now you dont think so .we also have had the demise of dfob which had a carry over effect of holding prices down for several years whilst the fall out was sorted out
    it is a fact that milk link have slipped down the uk league to the bottom and this concerns me greatly as i have supplied milk at the bottom of the league before and moved to supply it at the top end ,you would be amazed at how much effect this has on profitabilty for no extra work .I am extremly disapointed that milk link did not get a minium price gurantee related to the uk market place if every body at arla and milk link believed the fact that the uk would always stop at the bottom of the league it was a no brainer to put it in to protect milk link members, i suspect that arla had a fair idea what was going to happen and thats why it did not get included,if not i can only draw the conclusion that the milk link side failed to protect our intrests and that is very sad but i am confident that it was not the case.
    The new code will make it difficult for processers to reduce prices unless they are substantially out of line and this will also help raise the uk price
    I am dissapointed with arlas profit as i think if iam correct that in previous years about 90 million has come from the uk add that to milk links profit and the tax saving maded by the merge and it looks like over half of the profit has come from the uk but i think that we only 25-30% of the milk?which must mean that the rest of the world is way off the pace and we are supporting it? No doubt you will correct these figures if my memmory is not correct.

  22. #52
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    Re: Arla

    Quote Originally Posted by Farmer on a bike View Post
    10 BoR members and 2 directors from UK. These meetings are 3x per year and the actual meeting time is close to 12hours in total each time. The meeting is run with simultaneous translation into 4 languages. How could you make the suggested technology work for a council of 140?

    we do use conference calls and video conferencing between our group in the UK, but it becomes too difficult above about 15 people. Unfortunately democracy does have some financial cost but in ppl it is minute.
    Sounds more like an expensive jolly!

    Ask yourself after the meeting - what would be different if this meeting had not happened?? 99% of the time email/internet forum would suffice at less than 1% of the cost

  23. #53

    Re: Arla

    Fir tree- with regard to price linkage, with hind site you look right at present, but I would expect that if we had agreed a base price as you suggest then we would not have been able to link our price to the arla-on account price on the up side. At the time of the initial negotiations we were 5ppl below arla and there worry was they would be heavily overpaying us compared to UK market. Based on history, what we got seemed the best deal and maybe, it will be by next year.

    as regards Arla UK profits, remember some of the profit is from the sale of Danish lurpak and some from NZ anchor ( now UK sourced), so not all due to UK milk. In any case I would be more concerned if they hadn't made profits.

    einstein- I reckon I learnt more and had more effect in the October meeting of the BoR than the other 4 months combined. This is the chance to meet, question and put pressure on the top execs face to face.

  24. #54
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    Re: Arla

    Quote Originally Posted by Farmer on a bike View Post
    Fir tree- with regard to price linkage, with hind site you look right at present, but I would expect that if we had agreed a base price as you suggest then we would not have been able to link our price to the arla-on account price on the up side. At the time of the initial negotiations we were 5ppl below arla and there worry was they would be heavily overpaying us compared to UK market. Based on history, what we got seemed the best deal and maybe, it will be by next year.

    as regards Arla UK profits, remember some of the profit is from the sale of Danish lurpak and some from NZ anchor ( now UK sourced), so not all due to UK milk. In any case I would be more concerned if they hadn't made profits.

    einstein- I reckon I learnt more and had more effect in the October meeting of the BoR than the other 4 months combined. This is the chance to meet, question and put pressure on the top execs face to face.
    Seriously good luck putting pressure on Arla top execs....

  25. #55
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    Re: Arla

    Quote Originally Posted by Sheila View Post
    Seriously good luck putting pressure on Arla top execs....
    Yes arla have proved too be sharks !

  26. #56
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    Re: Arla

    .55pl increase with effect from 4th march.

  27. #57
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    Re: Arla

    Quote Originally Posted by dinderleat View Post
    .55pl increase with effect from 4th march.
    What are everyone's feelings on that?

  28. #58
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    Re: Arla

    Going in the right direction just need that increase every month for the next 6!

  29. #59
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    Re: Arla

    A good step forward, and hopefully a step to help secure milk going forward, i know a lot will say its to little and will still be giving in their notice, but there will be a lot looking longer term and wanting to be involved in a good successful coop

    Quote Originally Posted by Sheila View Post
    What are everyone's feelings on that?

  30. #60
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    Re: Arla

    Is that 29p yet ? what a fecking joke !!

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