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Thread: Arla

  1. #211
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    Re: Arla

    Quote Originally Posted by dinderleat View Post
    Spot on as usual FOAB, we will get there one day just need the belief to keep at it.
    When? LMFAO

  2. #212
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    Re: Arla

    I have to say I'm one of many that strongly supported the likes of MilkLink etc, but over the last 12/18 months which have been extremely tough, the hand that feeds the mouth has offered little to know help. You then see spot milk price sky high, and all the smaller processors paying more for the milk (which is obviously linked).

    I know you say it would be impossible for milk price to drop to 10p suddenly maybe that is a stupid example (it was more to show how ridiculious the Contracts are) what about ARLA dropping the base price to 26ppl over night, it could happen...

    My Contract doesn't stipulate what the retention percentage is, and doesn't state if ARLA change their policy (which they are free to do) I can opt out...!!

  3. #213

    Re: Arla

    Quote Originally Posted by Einstien View Post
    I have to say I'm one of many that strongly supported the likes of MilkLink etc, but over the last 12/18 months which have been extremely tough, the hand that feeds the mouth has offered little to know help. You then see spot milk price sky high, and all the smaller processors paying more for the milk (which is obviously linked).

    I know you say it would be impossible for milk price to drop to 10p suddenly maybe that is a stupid example (it was more to show how ridiculious the Contracts are) what about ARLA dropping the base price to 26ppl over night, it could happen...

    My Contract doesn't stipulate what the retention percentage is, and doesn't state if ARLA change their policy (which they are free to do) I can opt out...!!
    the reality is that arla's price tends to follow the market with a lag. This is fairly obvious when you think about it. The commodity market goes up, you then use that to extract higher prices from your customers (supermarkets). Some price rises can be quite quick some a bit slower, but all will lag behind the commodity market. The same will happen on the way down as well.

    in the current situation where our costs have increased because of the almost unprecedented poor weather over the last year this lag effect is undoubtably a real problem. The point is the trend is set to be upwards for a while yet.

    your contract doesn't stipulate the retention percent, but the BoR does. Or at least they must approve any recommended change. There would have to be some dramatically serious shock to the financial position to get that agreed. The clear sentiment of the BoR is that as much as possible should be paid out as soon as possible. The members of the BoR are all on the same milk price (dependant on milk quality) and are a reasonable cross section of the owners, so they know the current pain. The weather and feed prices have hit Denmark, Sweden and Germany as well.

  4. #214

    Re: Arla

    Fob second post in a row you have put about supermarket price, but not that long ago the posts were about European price and world market prices. Is this going to be arlas next get out as why the price isn't rising any quicker?

  5. #215

    Re: Arla

    My definition of the European price is a combination of the world market and what you can get out of your customers (mainly) across Europe. You cannot get more than your customer will pay, but if he won't pay and you can find another customer who will pay more you sell it to him instead. Simples

  6. #216
    Senior Member fergieman's Avatar
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    Re: Arla

    The problem is that dairies (not just Arla) sell forward at a set price and when the commodity prices rise they are stuck with their set price contract. Hence why the prices are slow to rise and fast to drop in relation to commodity prices. (Not saying this is right just how it is)

  7. #217

    Re: Arla

    It doesn't matter which dairy company we are talking about, their staff will be trying to get price increases from their customers at the present time. The problem is the consumer will react by buying slightly less, unless the middle man (super market) absorbs the price increase (unlikely despite us knowing they could afford to).

    you can be as synical as you like but the fact is arla as a co-op will pay what it can earn. If the guys selling to the supermarkets don't get it right, you can be sure the arla management will be just as ruthless with them, if not more so, than they are with any supplier. The clear stated objective of the company is to return as much money to the owners as possible. Any ruthless action is driven by that, including not releasing suppliers or owners who want out, from their contracts early, because it will reduce the milk price to the owners who remain.

  8. #218

    Re: Arla

    Quote Originally Posted by fergieman View Post
    The problem is that dairies (not just Arla) sell forward at a set price and when the commodity prices rise they are stuck with their set price contract. Hence why the prices are slow to rise and fast to drop in relation to commodity prices. (Not saying this is right just how it is)
    You are right except it works both ways, the drop is slow as well. The issue is when prices are high we all tend to ignore the commodity falls until it starts to effect our price despite the fall having started months before. Historic data clearly and constantly shows the lag is just as much on the down as well as the up.

  9. #219

    Re: Arla

    perhaps it is time that arla give out some ruthless action then to the people who consistently give out price rises to directs higher than the owners. You can only pay out what you receive less costs, time somebody looked hard and long at all the costs

  10. #220

    Re: Arla

    Quote Originally Posted by fir tree View Post
    perhaps it is time that arla give out some ruthless action then to the people who consistently give out price rises to directs higher than the owners. You can only pay out what you receive less costs, time somebody looked hard and long at all the costs
    You have to remember at our meeting ake hantoft told us they 'will pay what ever it takes' to get the milk for afmp

  11. #221

    Re: Arla

    Quote Originally Posted by fir tree View Post
    perhaps it is time that arla give out some ruthless action then to the people who consistently give out price rises to directs higher than the owners. You can only pay out what you receive less costs, time somebody looked hard and long at all the costs
    In answer to first part. The decision is that paying our more to directs short term results in more for the owners long term. Bloody frustrating, yes, continuously questioned, yes, needs sorting, yes.

    I think it would be stateing the obvious to confirm that all costs are being looked at long and hard.

  12. #222

    Re: Arla

    Quote Originally Posted by Cornishfarmer View Post
    You have to remember at our meeting ake hantoft told us they 'will pay what ever it takes' to get the milk for afmp
    I think the quote should be (even if he didn't say it) 'will pay whatever it takes, but no more than whatever it takes'

  13. #223
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    Re: Arla

    I get the impression that treating people FAIRLY is part of the remit of co-ops.It is not,retired members are treated like crap and if you complain they laugh at you.If you are within 5 years of retirement you MUST leave or you will end up as bitter as me.

  14. #224
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    Re: Arla

    Quote Originally Posted by Farmer on a bike View Post
    I think the quote should be (even if he didn't say it) 'will pay whatever it takes, but no more than whatever it takes'
    Last time I checked they were a business, not a charity.

  15. #225
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    Re: Arla

    I think I'm the charity as they've got over 50,000 of mine and pay me nothing for it.

  16. #226
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    Re: Arla

    Hand in your notice then.

  17. #227
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    Re: Arla

    Quote Originally Posted by uptherams View Post
    Hand in your notice then.
    I've been retired for 2 1/2 years

  18. #228

    Re: Arla

    Quote Originally Posted by farmernocows View Post
    I think I'm the charity as they've got over 50,000 of mine and pay me nothing for it.
    Is that the value of the money you have put in, or what their shares are actually worth? Has anyone got any idea what the share price is?

    I'm sure that I 'invested' some at 70p/share but I have no idea what it is worth now. Going forward the latest MPL investment is going to cost us 60,000 for no return (no dividend, no 13th payment, capital growth???) other than the promise we may become full Amba members at some point, but we may have to put in yet more money. Given the disharmony amongst Milklink members would I'm not sure I want to join anyway

  19. #229
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    Re: Arla

    When the merger/takeover took place trading of entitlements was stopped.I happily put my 1/2p in with the knowledge that if times got hard I could sell them for whatever they might make.They are my least available asset,I could sell the farm quicker than I could get the money out of Milk Link.

  20. #230

    Re: Arla

    Quote Originally Posted by Farmer on a bike View Post
    In answer to first part. The decision is that paying our more to directs short term results in more for the owners long term. Bloody frustrating, yes, continuously questioned, yes, needs sorting, yes.

    I think it would be stateing the obvious to confirm that all costs are being looked at long and hard.
    if you agree it needs sorting sort it or have we got to come and que outside for our duck dinners,you haven,t managed to sort it in 8 mths do it now most of us are losing patience.
    costs are not being looked at hard enough I asked a question about money wasting at our meeting and neither the employees or the BoR member there has bothered to get back to us with an answer,so they didn't look very hard at a clear example of our money being wasted or did not want to admit to the blatant wasting of our money

  21. #231
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    Re: Arla

    Quote Originally Posted by bramble View Post
    Is that the value of the money you have put in, or what their shares are actually worth? Has anyone got any idea what the share price is?

    I'm sure that I 'invested' some at 70p/share but I have no idea what it is worth now. Going forward the latest MPL investment is going to cost us 60,000 for no return (no dividend, no 13th payment, capital growth???) other than the promise we may become full Amba members at some point, but we may have to put in yet more money. Given the disharmony amongst Milklink members would I'm not sure I want to join anyway
    Likewise. Notice has gone in and resignation accepted.

  22. #232
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    Re: Arla

    If they've robbed you take them to court.

  23. #233
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    Re: Arla

    All arla have to do is drop the transition period and many of us would be a lot happier. but oh no that would require my favourite word FLEXIBILITY, a word that is alien to arla because they just do not understand that we have something that they do not have in Denmark, a choice of milk buyer.

  24. #234

    Re: Arla

    Mrs sent me shopping last night, which she is regretting this morning. Tesco's 500g anchor 2.90. 500g Clover 2.00. 99p shop 500g clover you guessed it 99p. We now have 10 pots of clover!!!!! I know it's a small sample but how can 'our' anchor be so uncompetitive?

  25. #235
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    Re: Arla

    Quote Originally Posted by Cornishfarmer View Post
    Mrs sent me shopping last night, which she is regretting this morning. Tesco's 500g anchor 2.90. 500g Clover 2.00. 99p shop 500g clover you guessed it 99p. We now have 10 pots of clover!!!!! I know it's a small sample but how can 'our' anchor be so uncompetitive?
    At least the anchor version of that spreadable shite contains 58% butter. Whereas clover......erm.....doesn't.

  26. #236
    Senior Member JimF's Avatar
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    Re: Arla

    Did you make sure you bought the UK Anchor? You have to check very carefully as some is UK produce and some NZ. We've just tried both and there is a slight difference in texture, however they're both OK but Clover is better. So we're sticking with it.

  27. #237
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    Re: Arla

    Ok, so got my April milk statement, got charged 0.748ppl for milk balancing, or 1600, for over producing. All when they are buying milk off the spot market for 35p. Bloody crazy scheme.

  28. #238
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    Re: Arla

    Quote Originally Posted by Disco View Post
    Ok, so got my April milk statement, got charged 0.748ppl for milk balancing, or 1600, for over producing. All when they are buying milk off the spot market for 35p. Bloody crazy scheme.
    Agreed... they need to have some sort of dynamic payment which perhaps gives the producers (not just owners as I guess there are a lot of non farming/retired ones that may not have been hit by weather/costs etc) a demand related bonus (perhaps to all producers not just those able to massively over produce - just thinking out aloud)?

    Also as Arla are so big and have economies of scale, super low cost high tech processing etc, they 'should' be able to pay slightly more than the competition!!!!!! :-)



    Also why

  29. #239
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    Re: Arla

    Quote Originally Posted by Farmer on a bike View Post
    Arla Milklink owners price for June will be announced by 25th May.
    That date isn't too far away now. I presume if it is good news we will hear it on monday 27th and if poor news on friday 24th, lets hope it is very good news.
    Last edited by Candyman; 20-05-13 at 05:33 PM.

  30. #240
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    Re: Arla

    can you delete the amount bit please. they might think they have over paid us if we get more and they read this..

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