Page 27 of 27 FirstFirst ... 17252627
Results 781 to 795 of 795

Thread: Arla

  1. #781
    Senior Member
    Join Date
    Feb 2013
    Posts
    961

    Re: Arla

    Quote Originally Posted by matbrojoe View Post
    OMSCO, i won't say what the base price is as i might get lynched but you can look it up. bear in mind it's not so long ago that i was getting less than my friend up the road supplying first milk, however even at this time i was happy with how OMSCO was working because they were doing their best in a very difficult market and prevented what could have been a catastrophic collapse by standing up to the supermarkets and shorting the markets by shipping milk to france, they were only able to do this because they have a strong position in the market with over 60% of organic supplies going through them. They've also engaged in a couple of generic advertising campaigns and are actively pursuing alternative markets.
    Yes I agree OMSCO probably the only Co-Op that have paid attention to what's needed, now whether they pay enough to cover the cost of proper organic farming is questionable, I looked in 2012, spoke to a member who at the time had averaged 32.8ppl in the year which to be fair was more than most, BUT not enough to cover the increased cost of things like Parlour feed alone.

    I did also find some dubious practises on 'Organic farms' i.e. bought in hay not necessarily from approved Organic sources! I do admire their marketing, even if they do to a certain degree play off against 'Normal Milk' and imply that it's whiter etc not just that it's 'Organic'... I also liked the fact that you could have higher cell counts etc., yet this isn't made publicly aware (arguably at the expense of non organic milk sales).... All very clever when still pasteurised and homogenised

    Out of interest does their price direct differ from the 'ARLA Omsco' price whatever that is?

  2. #782
    Senior Member Bald Rick's Avatar
    Join Date
    Feb 2013
    Location
    Anglesey
    Posts
    1,010

    Re: Arla

    Quote Originally Posted by Andy6480 View Post
    I think you will find they are responsible for promoting dairy farming to the public, not doing much of a job it would seem
    Ah, but all that will change when they become AHDB Dairy shortly.

    Just think, they'll have to spend millions on rebranding their logo and providing staff with fleeces. If that's not promotion, I don't know what is ..........

  3. #783
    Senior Member
    Join Date
    Feb 2013
    Posts
    215

    Re: Arla

    Quote Originally Posted by Einstien View Post

    I did also find some dubious practises on 'Organic farms' i.e. bought in hay not necessarily from approved Organic sources! I do admire their marketing, even if they do to a certain degree play off against 'Normal Milk' and imply that it's whiter etc not just that it's 'Organic'... I also liked the fact that you could have higher cell counts etc., yet this isn't made publicly aware (arguably at the expense of non organic milk sales)
    Organic milk has to be sub 400 scc just like conventional , price bands under that are just a means of reducing the farmgate price without effecting the headline price , tanker loads of milk will just be traded as sub 400 not 250 . when dfob was still going and we had an organic pool alongside a conventional pool there was next to no difference between the two pools scc's despite very different payment bands . indeed in our own discussion group that contains conventional and organic farms the organic had a lower average scc this year , other years it's the other way around but very very little in it . Organic milk having higher scc is just a myth and well done to Omsco for not playing along with stupid payment bands just to give lie to their headline price .
    Another myth I have observed from being both a conventional and organic farmer is that organic farmers continually knock conventional, I would say from reading any of the farming forums the reverse is usually nearer the truth .

  4. #784
    Senior Member
    Join Date
    Feb 2013
    Posts
    1,456

    Re: Arla

    Quote Originally Posted by Einstien View Post
    Yes I agree OMSCO probably the only Co-Op that have paid attention to what's needed, now whether they pay enough to cover the cost of proper organic farming is questionable, I looked in 2012, spoke to a member who at the time had averaged 32.8ppl in the year which to be fair was more than most, BUT not enough to cover the increased cost of things like Parlour feed alone.

    I did also find some dubious practises on 'Organic farms' i.e. bought in hay not necessarily from approved Organic sources! I do admire their marketing, even if they do to a certain degree play off against 'Normal Milk' and imply that it's whiter etc not just that it's 'Organic'... I also liked the fact that you could have higher cell counts etc., yet this isn't made publicly aware (arguably at the expense of non organic milk sales).... All very clever when still pasteurised and homogenised

    Out of interest does their price direct differ from the 'ARLA Omsco' price whatever that is?
    Chips has already addressed the standard issue organic bashing very well so i'll just answer the other points, going back to 2012 the conventional price was much stronger, and organic concentrate prices were around 70 to 100 more than today, so the advantage of organics was considerably more marginal then, it looks a lot better now, it has to be said. Saying that I'm not going to be smug about it, partly because organics does better in the long term on the back of a decent conventional price, partly because i don't like to see my fellow farmers getting shafted as they are now and also because staying with organics isn't down to some brilliant foresight on my part, adding value is really the only route open to me as a small producer. I have some friends who send a similar amount of milk to me and are with first milk, their price was derisory after all the volume deductions and collection charges even when the job was ok, it's an out an out insult now. Even when organics has not been so good, it's still been better than first milk.

    To answer your other question, Arla producers are paid on the basis or an organic bonus above the standard litre price, so their price has dropped by about 8-10ppl. There's no market justification for this cut, and Arla are buying milk from OMSCO at the moment, so arguably Arla are shafting their organic suppliers here, though obviously when conventional was good, they were getting more than i was with OMSCO.

  5. #785
    Senior Member
    Join Date
    Feb 2013
    Posts
    961

    Re: Arla

    Quote Originally Posted by Chips View Post
    Organic milk has to be sub 400 scc just like conventional , price bands under that are just a means of reducing the farmgate price without effecting the headline price , tanker loads of milk will just be traded as sub 400 not 250 . when dfob was still going and we had an organic pool alongside a conventional pool there was next to no difference between the two pools scc's despite very different payment bands . indeed in our own discussion group that contains conventional and organic farms the organic had a lower average scc this year , other years it's the other way around but very very little in it . Organic milk having higher scc is just a myth and well done to Omsco for not playing along with stupid payment bands just to give lie to their headline price .
    Another myth I have observed from being both a conventional and organic farmer is that organic farmers continually knock conventional, I would say from reading any of the farming forums the reverse is usually nearer the truth .
    I've never heard an organic farmer knocking conventional Milk - however the OMSCO marketing does somewhat, I guess they are bound to do this to add value to their product.... I disagree about the Payment Bands, this has to be lowering SCCs across the board - what I find odd is that Organic Contracts don't have the same bonus - I mean why doesn't an organic contract push for SCCs below 150??? Don't get me wrong I'm actually wanting to go Organic, but frustrated that I can't see my finances supporting it (As likewise I'm selling to a good small processor at a good price who isn't interested in organic milk). If I was with ARLA still or Firstmilk, I would be trying to get an Organic Contract straight away!

  6. #786

    Re: Arla

    Fob please confirm. Surely Arla ate taking the p:-/s out of the British farmers.
    March price rise 1.5 cent= 0.83ppl
    May price reduction 1 cent = 0.84ppl
    Come on who is representing us. Have they lost their calculators we just being used as whipping boys. Fair is fair we are all equal in a coop unless we are British

  7. #787
    Senior Member
    Join Date
    Feb 2013
    Posts
    219

    Re: Arla

    Quote Originally Posted by Cornishfarmer View Post
    Fob please confirm. Surely Arla ate taking the p:-/s out of the British farmers.
    March price rise 1.5 cent= 0.83ppl
    May price reduction 1 cent = 0.84ppl
    Come on who is representing us. Have they lost their calculators we just being used as whipping boys. Fair is fair we are all equal in a coop unless we are British
    Its called devaluation and quantative easing.europe is trying to reinflate its economies and export its way to prosperity.nothing to do with ARLA its the difference between a successful and an unsuccessful economy.

  8. #788

    Re: Arla

    Quote Originally Posted by Cornishfarmer View Post
    Fob please confirm. Surely Arla ate taking the p:-/s out of the British farmers.
    March price rise 1.5 cent= 0.83ppl
    May price reduction 1 cent = 0.84ppl
    Come on who is representing us. Have they lost their calculators we just being used as whipping boys. Fair is fair we are all equal in a coop unless we are British
    In March there was a currency correction as well of about -0.4ppl . At the start of July there will be another currency correction due of around -0.5 ppl at current exchange rate.


    In fact actually you have the situation the wrong way around. If we had to accept today's exchange rate our price would be 2ppl lower, the currency smoothing mechanism is protecting us, because we use the average over the last 2 years, changing on a rolling quarterly basis.


    You should feel sympathy for the Swedish Arla owners who are in the exact opposite position. There currency has fallen more than the Euro and they are on the wrong end of the smoothing as they are getting 2ppl below today's currency conversion. That means they are 4ppl below us if you convert on today's currency conversion which is extremely painful.

  9. #789
    Senior Member
    Join Date
    Mar 2013
    Location
    Cumbria
    Posts
    100

    Re: Arla

    I am a Arla member (Not fully paid up yet.)

    At the meetings to encourage us to join i stood up and pointed out that at the time the difference between a good milk price was 1ppl or 2ppl, or 3-6%, but that the euro sterling exchange rate had moved over 30% in the 5 years previous.

    We were assured the currency smoothing mechanism would help and that they thought large scale differences were unlikely but they did concede it could be a problem.

    I had never appreciated about it working the other way currently for some members FOB.

    So my question is, does the Arla AMBA international model follow the euro currency model, where it struggles to match the needs of each country individually and as such in the long term could this be a fundamental flaw?

  10. #790

    Re: Arla

    Quote Originally Posted by BMEH View Post
    I am a Arla member (Not fully paid up yet.)

    At the meetings to encourage us to join i stood up and pointed out that at the time the difference between a good milk price was 1ppl or 2ppl, or 3-6%, but that the euro sterling exchange rate had moved over 30% in the 5 years previous.

    We were assured the currency smoothing mechanism would help and that they thought large scale differences were unlikely but they did concede it could be a problem.

    I had never appreciated about it working the other way currently for some members FOB.

    So my question is, does the Arla AMBA international model follow the euro currency model, where it struggles to match the needs of each country individually and as such in the long term could this be a fundamental flaw?
    in reality our milk price has been impacted by currency over the years, although we have generally sat at a fairly consistent level below the European price, apart from a few periods which did not last that long. Now we seem to have three levels. The COP/formula type contracts which seem to be giving a more level milk price. The main stream companies who seem to be following Arla and then the other companies/co-ops who are either struggling or trying to take maximum advantage for themselves in the current market.

    The currency smoothing has done what it says on the tin, as it has made the fall caused by currency be spread over a longer period. For the Swedish it has done the same in stopping the rise caused by currency happening as quickly. Unfortunately for the Swedes this has coincided with a steeply falling period of milk price.

    There is no way you can only smooth the currency on a fall and not on a rise. You either have smoothing or you don't. It was introduced to smooth the currency gap between the Swedish and Danish Crowns (Krone). I believe this was done to help the Swedes at a previous time, but now they are on the wrong end of it. The Danish Crown aims to maintain parity with the Euro and has managed to maintain this so far.

    As our price is being more and more determined by the world market, I cannot see how this makes the Arla situation flawed, it actually spreads the currency risk through the earnings of branded products from various markets. Remember we do effectively have some protection because approx 25% earnings are , 20% in US$, less than 10% in Swedish Crown and the rest in /Danish Crown. This spreads the risk significantly.

    I think it will be revisited. I believe we must have some type of currency averaging, I don't think changing the currency conversion on a monthly basis is sensible, but the average could be over a shorter period than 2 years

    As you said originally currency was the more volatile issue and that is why the smoothing made sense but now the milk price seems the more volatile part of the equation so maybe it needs looking at again. I welcome the thoughts of others.

  11. #791
    Senior Member
    Join Date
    Mar 2013
    Location
    Cumbria
    Posts
    100

    Re: Arla

    Are the Arla farmers who are currently part of the TSDG getting the arla price or the tesco price?

  12. #792
    Senior Member Sam_TM's Avatar
    Join Date
    Feb 2013
    Location
    Cleveland. UK
    Posts
    582

    Re: Arla

    Quote Originally Posted by BMEH View Post
    Are the Arla farmers who are currently part of the TSDG getting the arla price or the tesco price?
    Depends!
    If they cooperative farmer members of Arla but also part of TSDG then they get the Arla milk price the same as every other Arla farmer. Following cooperative principles their TSDG payment is added to the pool of sales returns to calculate the Arla farmer member's milk price.
    The other Arla TSDG farmers are Arla Directs (non Arla members) & will receive the TSDG ppl for their milk.

  13. #793
    Senior Member Sam_TM's Avatar
    Join Date
    Feb 2013
    Location
    Cleveland. UK
    Posts
    582

    Re: Arla

    New video from Arla - The Arla Farmer Owned Story



    Meet our farmers - http://www.arlafoods.co.uk/about-us/...t-our-farmers/

  14. #794
    Senior Member
    Join Date
    Feb 2013
    Posts
    961

    Re: Arla

    Was anyone else laughing hysterically about what the people were saying in there.....

  15. #795

    Re: Arla

    Quote Originally Posted by Disco View Post
    Hahaha. The theory is correct enough but the uk is a long way away from feeling like part of the cooperative. We just seem to be told by the Europeans what is happening and have to tow the line. Selective dry cow tubing, collection charges, payment schedules. Have I been consulted about any of these? No. Our board of representatives just give way to the European way, can I do anything about it? It is 3 years since I got a vote for my district chairperson and apparently another two years until local elections will take place. Is that what you call democratic Arla? We have a farmer board who only seem interested in furthering their own Arla careers.
    Having been involved in work on the payment schedule, I can say it has been a process of consultation. Some of the changes that immediately come to mind, include the fact that the whole of Arla has agreed to using the milklink graduated payments system, that we are to have a geometric mean for bactoscan [certainly against original plan], that it is looking more likely the whole of arla will move from measuring bacteria in CFU to the UK system of bactoscan. There have been plenty of other changes we have achieved, including quite a number of points in the Arla garden. We got a derogation to delay the introduction of collection charges. We have regularly published plans for one settlement and there has been discussion at meetings which we have used to identify the areas where we needed to move the original proposals. OK we haven't always got what we wanted but we have had got some significant changes.

    There were elections this February, in AML all posts were re-elected. in AMCo, I thought all areas had council elections, but that is not really my remit to discuss as part of AML. In Feb 2017 every post will be up for re-elction, and I encourage anyone who is interested to stand, we need more elections and less candidates returned unopposed.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •