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Arla

Location
southwest
[QUOTE="Sid,

Now the largest liquid and cheese business in the UK.[/QUOTE]



So raw milk prices will be linked to retail prices, rather than the irrelevant but oft quoted "world prices dropping" excuse for farmgate price cuts?
 
Didn't the voluntary code contain a 3 month notice period on termination of supply? What is Arla's?

Arla is compliant. The rules, correctly, are different for co-op and companies. The rules are clear and easy to read. A number of UK companies have muddied the waters for their own reasons. They cannot accept there is a difference when a company is owned by the farmers that supply it and benefit from all the profits compared to a privately owned company run for share holders who are not suppliers.
 
[QUOTE="Sid,

Now the largest liquid and cheese business in the UK.



So raw milk prices will be linked to retail prices, rather than the irrelevant but oft quoted "world prices dropping" excuse for farmgate price cuts?[/QUOTE]

Arla milk prices are linked purely to what it makes from the market. All the profit goes to dairy farmer owners. The price Arla receives is linked to the world market and European market for dairy commodities, but also the price it receives from its supermarket customers in the UK, Europe and around the world. All these are interlinked to varying degrees and impact on the milk price we receive.
 

Sid

Member
Livestock Farmer
Location
South Molton
[/QUOTE]

Arla milk prices are linked purely to what it makes from the market. All the profit goes to dairy farmer owners. The price Arla receives is linked to the world market and European market for dairy commodities, but also the price it receives from its supermarket customers in the UK, Europe and around the world. All these are interlinked to varying degrees and impact on the milk price we receive.[/QUOTE]

Commodities and supermarkets never a good mix.

Brand is better. But shoppers are getting savy especially the millenials. Brands are not top of their list.
 
Rather obviously we sell our brands to supermarkets, I would have thought that was obvious.

What other mix is there apart from selling commodities and to supermarkets. Maybe wholesale or direct but since 90% of shoppers buy through supermarkets, it is not really a volume option.
 

Sid

Member
Livestock Farmer
Location
South Molton
Rather obviously we sell our brands to supermarkets, I would have thought that was obvious.

What other mix is there apart from selling commodities and to supermarkets. Maybe wholesale or direct but since 90% of shoppers buy through supermarkets, it is not really a volume option.

Supermarket own brand is a large proportion of Arla business, which is what I thought you were alluding to.
Arla brand should be less influenced by the commodity market.

Is 90% the same across the whole of Europe?
 

peclova

Member
Supermarket own brand is a large proportion of Arla business, which is what I thought you were alluding to.
Arla brand should be less influenced by the commodity market.

Is 90% the same across the whole of Europe?


Most brands in food (other than niche market) have now entered an era of terminal decline. As other Multiples are forced to rationalise their offer to compete with the likes of Lidl and Aldi, "Me Too" producers won't get shelf space. If you are not the "Number 1" brand, increasingly your only option will be to produce Own Label for the supermarkets.

I believe Arla is already starting to feel this squeeze. My hope is that those running the business have realised this. And they have a successful plan to reverse last years significant fall in Arla's brand value.
 

Alfred

Member
I believe Arla is already starting to feel this squeeze. My hope is that those running the business have realised this. And they have a successful plan to reverse last years significant fall in Arla's brand value.

Easiest way for a processor to offset that is through the milk price paid to the producer, unfortunately this always seems to be the end result with coop's.
So I hope that you are wrong in your analysis!!
 

Fendt415

Member
Location
Bodmin
In a no deal Brexit, I predict less dairy imports for various reasons, mean short supplies, which mean higher prices for British dairy farmers.

However because Arla's milk price is pegged to the European Arla price I predict us at the bottom of the milk price tables.

Should I be tendering my notice now?
 
In a no deal Brexit, I predict less dairy imports for various reasons, mean short supplies, which mean higher prices for British dairy farmers.

However because Arla's milk price is pegged to the European Arla price I predict us at the bottom of the milk price tables.

Should I be tendering my notice now?

I think you have it spot on. Ash was squealing with his statement press release, but I think it’s all the other countries that are importing in to uk that are making all the negative noises.
I say stand up for British farmers and our produce and let’s make a good go of this for ourselves. If that means breaking away or changing then so be it.
 

maen

Member
Location
S West
I think you are beginning to see the writing on the wall. Post Brexit U.K. Members will not want to average their milk price with European farmers living under a completely different policatical system. After all that's what Brexit is all about, self determination.
Ash (and the Board) seems to think that UK members will happily support their Continental members to help 'even' things out. I think the answer in NO, that's what Brexit was all about. Rethink the business model and deliver a revised version that gives the UK more independence. It's not currently a popular thought but I believe it is inevitable or UK members will leave causing a massive drain on cash reserves. That threat in itself should cause the Board to rethink the future.
 
I’m sure it’s the Lurpak sales amongst others that they are most concerned about and the Danes desperately pushing for trade free barriers.
Still not heard a feasible long term solution to the exchange rate problem that’s been blamed early this year. That’s not going away either any time soon and for me is seen as a positive and should keep imports out and be good for us on beef and dairy side.
 

Sid

Member
Livestock Farmer
Location
South Molton
I think I'm right in saying that we already have different prices in different countries on the organic side of the business so it looks like it would be quite possible without a massive rule change.
And how long did it take to A.delink the organic from the conventional and B.seperate it from the EU price that is heavily subsidized .

It took the organic farmers lots of energy @Chips
 

maen

Member
Location
S West
I thi
I’m sure it’s the Lurpak sales amongst others that they are most concerned about and the Danes desperately pushing for trade free barriers.
Still not heard a feasible long term solution to the exchange rate problem that’s been blamed early this year. That’s not going away either any time soon and for me is seen as a positive and should keep imports out and be good for us on beef and dairy side.


I think the reality is that if Lurpack was unavailable then the sales of Anchor Speadable would make up the difference in the U.K. Supermarkets. Alternatively manufacturers Lurpack in the U.K. as it's a branded product. Oh, but there lies the problem.
 

Fendt415

Member
Location
Bodmin
Has any discussion taken place at area level about this?

Are the Brexit leavers being kept quiet?

We will lose members fast if my predictions come true.
 

maen

Member
Location
S West
Br
Has any discussion taken place at area level about this?

Are the Brexit leavers being kept quiet?

We will lose members fast if my predictions come true.

Brexit will happen in one shape or form. So why would Arla U.K. Members want be shackled to an European milk price that they have little control over. How, for example would any future intervention work?

It's time to rethink the future.
 

frederick

Member
Location
south west
As far as I have seen historically being shackled to a European milk price is a good thing.

We have no clue as to what a hard brexit landscape will look like. Why is it suddenly going to be roses for dairy. The govt will do everything it can to keep a lid on food inflation to prove it made the right decision. It will not put tariffs on imports but it may have them on exports.
Why will the housewife be happy to pay more for a bottle of milk post brexit .

I would leave the call for decoupling until we see the outcome. We may find it the other way round and the Europeans only to happy to throw us adrift because we are dragging their price down.

I am in dairying for the long term not just 6 month blips.
 

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Webinar: Expanded Sustainable Farming Incentive offer 2024 -26th Sept

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On Thursday 26th September, we’re holding a webinar for farmers to go through the guidance, actions and detail for the expanded Sustainable Farming Incentive (SFI) offer. This was planned for end of May, but had to be delayed due to the general election. We apologise about that.

Farming and Countryside Programme Director, Janet Hughes will be joined by policy leads working on SFI, and colleagues from the Rural Payment Agency and Catchment Sensitive Farming.

This webinar will be...
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