Arla TSDG

dinderleat

Member
Location
Wells
Don't really understand why they are doing this if there is a surplus of milk why not let them go instead of paying them 2ppl to stay!? Surely it's a bribe?

The contracts of a number of TSDG Arla direct farmers will transfer to Muller to mitigate the impact of surplus milk in Arla. Meetings with the farmers affected by this change have taken place.

Up until January 2016, UKAF TSDG farmers had been able to transfer across to a TSDG direct contract if they wished, providing they paid off any outstanding debt owed within their capital account and pay a leaving fee should they wish to leave before their 12 months’ notice period.

As soon as we were notified that Tesco was transferring volume we agreed with our Tesco farmer representatives to suspend the ability to transfer to a direct contract. However, the Arla Foods amba board and Tesco have now agreed that Tesco UKAF farmers should be given a short period of time to take up the opportunity to transfer to a direct contract. After this period the ability to transfer will be permanently closed.

We acknowledge that we removed an agreement that had been in place for UKAF TSDG members since January 2014. To reflect the impact of this change, the Arla Foods amba board has agreed to offer a one-off discretionary cash payment of 2ppl on 2015 milk volumes to UKAF TSDG farmers who choose to maintain their membership of Arla Foods amba.

While our priority has always been to protect our owners, we believe that we need to act fairly to UKAF TSDG members whose relationship with Tesco benefits all Arla owners.
 
Last edited:

jade35

Member
Location
S E Cornwall
Don't really understand why they are doing this if there is a surplus of milk why not let them go instead of paying them 2ppl to stay!? Surely it's a bribe?

The contracts of a number of TSDG Arla direct farmers will transfer to Muller to mitigate the impact of surplus milk in Arla. Meetings with the farmers affected by this change have taken place.

Up until January 2016, UKAF TSDG farmers had been able to transfer across to a TSDG direct contract if they wished, providing they paid off any outstanding debt owed within their capital account and pay a leaving fee should they wish to leave before their 12 months’ notice period.

As soon as we were notified that Tesco was transferring volume we agreed with our Tesco farmer representatives to suspend the ability to transfer to a direct contract. However, the Arla Foods amba board and Tesco have now agreed that Tesco UKAF farmers should be given a short period of time to take up the opportunity to transfer to a direct contract. After this period the ability to transfer will be permanently closed.

We acknowledge that we removed an agreement that had been in place for UKAF TSDG members since January 2014. To reflect the impact of this change, the Arla Foods amba board has agreed to offer a one-off discretionary cash payment of 2ppl on 2015 milk volumes to UKAF TSDG farmers who choose to maintain their membership of Arla Foods amba.
While our priority has always been to protect our owners, we believe that we need to act fairly to UKAF TSDG members whose relationship with Tesco benefits all Arla owners.
benefits all Arla owners

I think the last four words give the answer. Who knows what the future holds, by maintaining a foot in the door it may long term be more beneficial to all Arla members.

I often look at Waitrose and Marks and Spencer's milk and think "We (Arla) should be supplying that milk. Arla's credentials as a dairy co-operative ties in well with the 'ethical principles' of both companies"
 

frederick

Member
Location
south west
Those slightly more suspicious might think mr ovens and fellow tsdg reps managed to negotiate themselves a good deal.

I understand a good relationship with tesco is important but this appears a bribe to get tesco producers remain rather than return to being direct. I think a 2011 base year and b litres at 16ppl could have persuaded them to stay.

Surely you should either be in a coop or out. So much for all members equal and a one price policy.

They already get 1.42 tesco premium. Higher volume bonuses than manufacturing snd amco have probably recieved over 2 ppl in debt paydown from sharing tesco money. So were 3.42 ahead of ex milk link now 5.2 for 2015
 
Last edited:

bar718

Member
Those slightly more suspicious might think mr ovens and fellow tsdg reps managed to negotiate themselves a good deal.

I understand a good relationship with tesco is important but this appears a bribe to get tesco producers remain rather than return to being direct. I think a 2011 base year and b litres at 16ppl could have persuaded them to stay.

Surely you should either be in a coop or out. So much for all members equal and a one price policy.

They already get 1.42 tesco premium. Higher volume bonuses than manufacturing snd amco have probably recieved over 2 ppl in debt paydown from sharing tesco money. So were 3.42 ahead of ex milk marque now 5.2 for 2015
The 1.42 ppl payment is in recognition of the extra expense involved in being a tsdg member farm while only receiving the Arla standard litre price
 

Chips

Member
Location
Shropshire
I have a few options of signing to different buyers being organic , I wonder if I ring Arla would they offer me 2p/litre on last years milk to stay ! Seems totally wrong to me but I guess we have to trust them it's for the greater good , it sets a dangerous precedent in my mind
 

Sid

Member
Location
South Molton
Chips said:
I have a few options of signing to different buyers being organic , I wonder if I ring Arla would they offer me 2p/litre on last years milk to stay ! Seems totally wrong to me but I guess we have to trust them it's for the greater good , it sets a dangerous precedent in my mind
Thats what arla effectivly have done. Every time the conventional price drops so does organic. Everyone shouts and says their going to leave so they up the premium. Absolutely no link to the market price they are selling to.
If the TSDG have additional cost then pay those BUT the rest should return to the pool!
 

worker

Member
Thats what arla effectivly have done. Every time the conventional price drops so does organic. Everyone shouts and says their going to leave so they up the premium. Absolutely no link to the market price they are selling to.
If the TSDG have additional cost then pay those BUT the rest should return to the pool!
I think you will find that ARLA have now decoupled the organic price, to a certain extent. When the conventional price was cut , from 1 April 2016 it was also announced that the organic price would not change
 

Sid

Member
Location
South Molton
That doesn't mean its "decoupled" it means they didn't drop the price. BIG difference. Is the TSDG group price decoupled to the arla main price?
 

Chips

Member
Location
Shropshire
Thats what arla effectivly have done. Every time the conventional price drops so does organic. Everyone shouts and says their going to leave so they up the premium. Absolutely no link to the market price they are selling to.
Every time the conventional market price drops the organic market does not drop and so by putting the premium up to maintain the status quo for organics surely means there is a market link not vice versa. If they didn't up it then there would be no link . I did notice however this last time they have just ignored the drop so maybe they are going to seperate the pricing from now on .
 

dinderleat

Member
Location
Wells
I think there is only about 38ish farms left in the Arla TSDG member group as 39 ish have moved over to muller. So in the grand scheme of things it may not be to bad seeing as Arla are keeping a foot in the door with Tesco, things will soon turn the other way
 

Forum statistics

Threads
171,397
Messages
3,915,914
Members
42,830
Latest member
8th Generation Farmer

RABDF sets the record straight on why dairy farmers are having to discard their milk

  • 43
  • 0


Written by John Swire

The Royal Association of British Dairy Farmers (RABDF) has produced a Q+A document to help answer questions on why some farmers are having to discard their milk despite shortages still being seen in a few supermarkets.

The document ‘Getting to grips with the impact of Covid19 on milk supply issues’ details why dairy farmers are being affected, how many are affected, as...
Top