Arla

[vantage]

We had our letter about the arla seasonality scheme today telling us our base kgs, all fine until I see they are proposing -9 ppkg on b litres produced in May which would mean the b litres would be worth around 28/29 ppkg . What happens if the spot price stays above this price? Would the members be happy

Yes.
Only a tiny( and reducing ) amount gets sold on the spot. I guess we ( Arla ) could cancel our contracts and sell on the spot. Price would crash.

 

[celtis man]

There ought to be a mehanisim in place to protect us from these sorts of scenarios

Yes.
Only a tiny( and reducing ) amount gets sold on the spot. I guess we ( Arla ) could cancel our contracts and sell on the spot. Price would crash.

O

 

[coomoo]

We had our letter about the arla seasonality scheme today telling us our base kgs, all fine until I see they are proposing -9 ppkg on b litres produced in May which would mean the b litres would be worth around 28/29 ppkg . What happens if the spot price stays above this price? Would the members be happy

Why would you be producing a heap of b litres as you call them this may?

 

[celtis man]

Because our cows really go for it when they hit grass, it's how they are

 

[coomoo]

Because our cows really go for it when they hit grass, it's how they are

Different grass from last year

 

[celtis man]

Different grass from last year

Hopefully we will have a warmer earlier summer than last year? But we are learning how to feed the cows differently to get the desired results and by breeding Friesians

 

[More to life]

We had our letter about the arla seasonality scheme today telling us our base kgs, all fine until I see they are proposing -9 ppkg on b litres produced in May which would mean the b litres would be worth around 28/29 ppkg . What happens if the spot price stays above this price? Would the members be happy

Arla would make a healthy profit and then return it on the milk price.

 

[farmer on a bike]

We had our letter about the arla seasonality scheme today telling us our base kgs, all fine until I see they are proposing -9 ppkg on b litres produced in May which would mean the b litres would be worth around 28/29 ppkg . What happens if the spot price stays above this price? Would the members be happy

The Arla scheme is not designed to be market related. It is designed to encourage owners to level up supply so we can make more money in total by selling into the fresh product market rather than skim milk powder. I know the skim milk powder might look good this year but it will cost a lot of money to build another powder tower and we could make more money selling new branded fresh products. We need more Arla owners to calve cows in April to July, it doesn't matter if they are block calvers or AYR calvers we just need more cows calving in those 4 months and that is what the scheme is designed to encourage and any update to the scheme is likely to encourage that even more.

 

[sidjon]

The Arla scheme is not designed to be market related. It is designed to encourage owners to level up supply so we can make more money in total by selling into the fresh product market rather than skim milk powder. I know the skim milk powder might look good this year but it will cost a lot of money to build another powder tower and we could make more money selling new branded fresh products. We need more Arla owners to calve cows in April to July, it doesn't matter if they are block calvers or AYR calvers we just need more cows calving in those 4 months and that is what the scheme is designed to encourage and any update to the scheme is likely to encourage that even more.

So, we calf March to Early May and keep milk out of the tank on purpose to feed calves as it's cheaper to feed B litres to beef calves, if May June milk wasn't such a minus during this time spring calvers would be more likely to put it in tank, I'm not the only one who does this.

 

[Jdunn55]

So, we calf March to Early May and keep milk out of the tank on purpose to feed calves as it's cheaper to feed B litres to beef calves, if May June milk wasn't such a minus during this time spring calvers would be more likely to put it in tank, I'm not the only one who does this.

Be even more people doing it this year I reckon with the amount skim powder has gone up!

 

[jerseycowsman]

So, we calf March to Early May and keep milk out of the tank on purpose to feed calves as it's cheaper to feed B litres to beef calves, if May June milk wasn't such a minus during this time spring calvers would be more likely to put it in tank, I'm not the only one who does this.

We do exactly the same

 

[farmer on a bike]

So, we calf March to Early May and keep milk out of the tank on purpose to feed calves as it's cheaper to feed B litres to beef calves, if May June milk wasn't such a minus during this time spring calvers would be more likely to put it in tank, I'm not the only one who does this.

We want the milk to increase from mid/late June through to September, so perhaps I should not add April calvers as being desirable, but a block calver starting calving in late April would be a really good profile as they would not hit peak until into late June which is why I mention April calving cows. I understand their are a few herds now trying this option. Clearly it is more expensive in cost terms which is why the incentive is required.

Calving from March and using milk for calves is a sensible option ( compared to calving in February and using powder) and is probably as good or better for Arla than an Autumn calving herd producing no milk in August, very little in September and still milking well in April/May.

August calvers help a tiny bit but are really too late to have much impact unless they calve in first few days.

 

[Cows 'n grass]

We do exactly the same

Those May/June liters will still be worth 35ppl to you this year.

 

[sidjon]

We want the milk to increase from mid/late June through to September, so perhaps I should not add April calvers as being desirable, but a block calver starting calving in late April would be a really good profile as they would not hit peak until into late June which is why I mention April calving cows. I understand their are a few herds now trying this option. Clearly it is more expensive in cost terms which is why the incentive is required.

Calving from March and using milk for calves is a sensible option ( compared to calving in February and using powder) and is probably as good or better for Arla than an Autumn calving herd producing no milk in August, very little in September and still milking well in April/May.

August calvers help a tiny bit but are really too late to have much impact unless they calve in first few days.

So a higher penalty on March/April milk would be better than a penalty of June milk, thus making July/August calving more attractive? As for delaying calving until April for us would end up with a very short calving block to control grass growth and herd would peak at the same time.

 

[lazy farmer]

I know what we will do at a time when litres are scarce we will disincentivise production.
Mental. You would think arla would be more nimble. It seems obvious already the peak will be no record breaker this coming spring. So capacity will be there so use it

 

[buffalo_soldier]

We want the milk to increase from mid/late June through to September, so perhaps I should not add April calvers as being desirable, but a block calver starting calving in late April would be a really good profile as they would not hit peak until into late June which is why I mention April calving cows. I understand their are a few herds now trying this option. Clearly it is more expensive in cost terms which is why the incentive is required.

Calving from March and using milk for calves is a sensible option ( compared to calving in February and using powder) and is probably as good or better for Arla than an Autumn calving herd producing no milk in August, very little in September and still milking well in April/May.

August calvers help a tiny bit but are really too late to have much impact unless they calve in first few days.

Out of interest, how many seasonal breeders were either involved or consulted on the format of the seasonality schedule?
And of them, how many have altered their production profile based on that input?
Might be a good barometer of its effectiveness.

 

[nonemouse]

I know what we will do at a time when litres are scarce we will disincentivise production.
Mental. You would think arla would be more nimble. It seems obvious already the peak will be no record breaker this coming spring. So capacity will be there so use it

But think it’s in the rules that they have to give us more than a years notice of any changes to the seasonality scheme, I’m sure @farmer on a bike will know better than me

 

[bar718]

Out of interest, how many seasonal breeders were either involved or consulted on the format of the seasonality schedule?
And of them, how many have altered their production profile based on that input?
Might be a good barometer of its effectiveness.

This seasonality scheme is the same one we have had for quite a few years now so nothing has changed for this year. If anything is to change it will be done with at least 12 months notice period for any changes to the scheme so we already know that we will have the same pluses and minuses for next year, just our individual base average daily production figure will be different.

 

[dinderleat]

But think it’s in the rules that they have to give us more than a years notice of any changes to the seasonality scheme, I’m sure @farmer on a bike will know better than me

12 months from the 1st of January

 

[lazy farmer]

But think it’s in the rules that they have to give us more than a years notice of any changes to the seasonality scheme, I’m sure @farmer on a bike will know better than me

These aren’t normal times. One might think there will be possible inefficiencies this spring from lack of milk going through plant. We all know in these situations the profit on those extra litres running through plant without extra (human ) cost will be very profitable in the current market ?