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.
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.
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