Arla

Is there a set formula by which price rises and falls are applied to the payments on fat and protein at the moment?

i.e. if the price were to rise €1c do we automatically get an extra ?? per %fat and ?? per% protein or could all the price rise be put onto the butterfat %?

It seems a bit silly to be paying more for protein when SMP values are still very low and the value of fat is driving the market and it is relatively easy to feed cows to raise the BF.

(no self interest here as a 6%BF producer)
 

goldtop

Member
Last price rise, BF rose 0.086ppkg, PROT rose 0.12ppkg , why didn't fat rise by more than protein. I suspect Arla UK sharing increases from fat payment amongst everyone. Hardly sending out the right market signals, and unfair on those producing what they need at the moment. FAT.
 

frederick

Member
Location
south west
Foab will correct me if I'm wrong. I think the bf prt payment ratio is set at the beginning of the year. It might even take a bor meeting to change the ratios.

It would be interesting how different peoples bf prt ratios were. They may be more similar than people expect.

I am currently 4.36 3.59 so 1.21 : 1
 

goldtop

Member
Mine 5.51 and 3.82 so 1.44 :1, at 4.0 and 3.3 its 1.21:1 and at 6.0 and 4.0 its 1.5:1. So if the price rise is driven by rises in fat, but our price is fixed to a set ratio in fat/protein, so the hi fat producers are subsidizing the price for the low fat producers. As i said above, it sends out the wrong market signal.
 

Sid

Member
Livestock Farmer
Location
South Molton
Mine 5.51 and 3.82 so 1.44 :1, at 4.0 and 3.3 its 1.21:1 and at 6.0 and 4.0 its 1.5:1. So if the price rise is driven by rises in fat, but our price is fixed to a set ratio in fat/protein, so the hi fat producers are subsidizing the price for the low fat producers. As i said above, it sends out the wrong market signal.
Now now, they wouldn't be sending the wrong signals to anyone. They maybe know something you don't. :whistle:
 
I dont mind it as is: steady, balanced, predictable.

I did mind them messing with it, then nobody knows where they are.
I would have been inclined to agree with you but there is a big enough lag in sending clear market signals to farmers all ready.
It seems to be the only language they understand when they look at that milk cheque and go bugger that's not so good.
When we start getting over supplied again our price could well be 2ppl higher than it should be which some will just see as lets just keep pumping out more and now i suspect Arla in the uk are glad of every litre we a trailing behind on price compared to the rest of Arla in Europe.
 

stablegirl

Member
Location
North
I had a rough work out and we are roughly 4ppl behind when you compare the smoothed milk price to a milk price based on the last month.

I dont see what everyones problem is with it, it gives you security to a huge part of Arla uks' volatility and although we have been loosing out recently it will swap over.

My only issue with it was them messing with it in may.
 
I had a rough work out and we are roughly 4ppl behind when you compare the smoothed milk price to a milk price based on the last month.

I dont see what everyones problem is with it, it gives you security to a huge part of Arla uks' volatility and although we have been loosing out recently it will swap over.

My only issue with it was them messing with it in may.

That seems a lot. I was told it was 2ppl but is now more like 1.5ppl.
 

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quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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