Arla

frederick

Member
Location
south west
It might be worth looking back over the last few years to see how much cost has been stripped out of the business already, only then do we realise that this is a massive challenge that has been set by the business to save this amount of money as the obvious cost saving exercises have already been done.

Dont get me wrong I think this is a great step. But where some non Arla members have been trying to distort the figures to make it look as if Arla must have been hugely inefficient to be able to find these savings that is very wide of the mark.
 

peclova

Member
It might be worth looking back over the last few years to see how much cost has been stripped out of the business already, only then do we realise that this is a massive challenge that has been set by the business to save this amount of money as the obvious cost saving exercises have already been done.


There is something acutely wrong here.

If non-cooperative milk buyers like Muller can match or even pay more than Arla then Arla must be inefficient in costs and/or sales. The added value supposedly generated by the co-op is passed back to the milk producer/member in an improved milk price. It is not retained by the processor and its owners. Therefore the milk price paid by Arla should be the market price of raw milk plus the added value.


The recognition that significant additional savings can be madein the bloated buisness is something I welcome
 
Quote "While the initiative has been planned since the end of last year, the scope of the cost-savings ambition has been increased by Arla’s management in recent months “in light of unique external challenges facing Arla as a result of the extent of the company’s exposure to the British pound (triggered by Brexit) and unfavourable developments in commodity markets”.

So on the face of it the 'savings' have been available for a long time, but until now there has been little need or desire to identify them. The amount of €400 million euros across the WHOLE of Arla is a big enough saving (4% of turnover) to warrant looking at without changes in the market to focus the mind, and when you consider these cost savings are not to be gained within all cost areas including that of milk buying, it indicates Arla are looking to save 6-7% across relevant areas. The biggest challenge to Arla going forward is quite obviously Brexit, and whilst this could be a huge issue for the whole industry, I wonder how many others are following Arlas lead and preparing?
 
No.
Cost savings is doing something more efficient or better. Say changing to sawdust

Cutting costs is cutting corners trying to save money. Say changing from straw to hay.
Quote "While the initiative has been planned since the end of last year, the scope of the cost-savings ambition has been increased by Arla’s management in recent months “in light of unique external challenges facing Arla as a result of the extent of the company’s exposure to the British pound (triggered by Brexit) and unfavourable developments in commodity markets”.

So on the face of it the 'savings' have been available for a long time, but until now there has been little need or desire to identify them. The amount of €400 million euros across the WHOLE of Arla is a big enough saving (4% of turnover) to warrant looking at without changes in the market to focus the mind, and when you consider these cost savings are not to be gained within all cost areas including that of milk buying, it indicates Arla are looking to save 6-7% across relevant areas. The biggest challenge to Arla going forward is quite obviously Brexit, and whilst this could be a huge issue for the whole industry, I wonder how many others are following Arlas lead and preparing?
what issues do you see @runny egg ?
i can't seem to get worked up about it either way.
I'm certainly not making any decisions based on brexit.
 
what issues do you see @runny egg ?
i can't seem to get worked up about it either way.
I'm certainly not making any decisions based on brexit.
Arla cited Brexits impact on currency as one of the driving forces in cost cutting, I'm sure the complexities of running an EU CooP where one member is leaving, will be presenting challenges the rest of us don't need to worry about. Personally I think dairy is the one area that could be least affected by Brexit is dairy, not saying it won't be affected but least affected. But final point on Brexit (this is an Arla thread) is not one person has any idea how we will be affected because not one of us knows what deal will be done or if we will even leave (yes the deal could be voted against by our own Brexiteers who decide 'the deal' isn't hard enough), for me it spells caution, not retirement, but caution - just like Arla perhaps.
 

Sid

Member
Livestock Farmer
Location
South Molton
Arla cited Brexits impact on currency as one of the driving forces in cost cutting, I'm sure the complexities of running an EU CooP where one member is leaving, will be presenting challenges the rest of us don't need to worry about. Personally I think dairy is the one area that could be least affected by Brexit is dairy, not saying it won't be affected but least affected. But final point on Brexit (this is an Arla thread) is not one person has any idea how we will be affected because not one of us knows what deal will be done or if we will even leave (yes the deal could be voted against by our own Brexiteers who decide 'the deal' isn't hard enough), for me it spells caution, not retirement, but caution - just like Arla perhaps.
As i was asked by a local BBC reporter how I thought Brexit would affect the industry.
I said it could be the best or worse ever....but until we get there we won't know!
 

Chips

Member
Location
Shropshire
Are they useless? Who voted them in then?

I can't comment on the organic milk market. Commercial sensitivity and all that

I don't think they are useless at all , you are the one who said they don't ask searching questions not me , funny I never hear you ever offer criticism of the board of your own co-op of which you are a director , how can you possibly know what questions our BOR ask and yet you wish to criticize them .
No other company other than Omsco has directors continually publicly criticizing other companies , in fact no other Omsco director does either other than yourself . Can you imagine if one of Arla's director's came on here incognito and continually slagged off Omsco and it's farmer board at every given opportunity ? It would be highly unprofessional and certainly not tolerated by Arla that's for sure
 

bar718

Member
I don't think they are useless at all , you are the one who said they don't ask searching questions not me , funny I never hear you ever offer criticism of the board of your own co-op of which you are a director , how can you possibly know what questions our BOR ask and yet you wish to criticize them .
No other company other than Omsco has directors continually publicly criticizing other companies , in fact no other Omsco director does either other than yourself . Can you imagine if one of Arla's director's came on here incognito and continually slagged off Omsco and it's farmer board at every given opportunity ? It would be highly unprofessional and certainly not tolerated by Arla that's for sure

Well at least we all know that whenever there is any comments on this Arla thread there is always one person who dominates it with all his comments but has the cheek to call others trolls in another thread, think he should look in the mirror myself.
 

Sid

Member
Livestock Farmer
Location
South Molton
I don't think they are useless at all , you are the one who said they don't ask searching questions not me , funny I never hear you ever offer criticism of the board of your own co-op of which you are a director , how can you possibly know what questions our BOR ask and yet you wish to criticize them .
No other company other than Omsco has directors continually publicly criticizing other companies , in fact no other Omsco director does either other than yourself . Can you imagine if one of Arla's director's came on here incognito and continually slagged off Omsco and it's farmer board at every given opportunity ? It would be highly unprofessional and certainly not tolerated by Arla that's for sure
So what you are saying is that anyone with an involvement in any dairy company shouldn't ask searching questions within another role of another dairy company?
Well thats the Local NFU office holders gone, the NFU dairy board finished, the AHDB board empty , plus many more.


Of course its sensible to ask questions. There is no such thing as a silly question.
If an Arla board member or rep or any other company wants to ask question I have no issue with that and will answer it to the best of my ability as i have done on here many times.

The majority of the conventional dairy farmers around here are Arla (ex ML) they are the ones in my role I hear from and get asked questions from. So I will guarantee that in the next week I will see one or get a call saying"if they can find €400million savings whats been going on before now"
That would be my first question of the company i own would it not be of yours?
 

Sid

Member
Livestock Farmer
Location
South Molton
Well at least we all know that whenever there is any comments on this Arla thread there is always one person who dominates it with all his comments but has the cheek to call others trolls in another thread, think he should look in the mirror myself.
Asking questions is not allowed?
 
Location
Devon
I don't think they are useless at all , you are the one who said they don't ask searching questions not me , funny I never hear you ever offer criticism of the board of your own co-op of which you are a director , how can you possibly know what questions our BOR ask and yet you wish to criticize them .
No other company other than Omsco has directors continually publicly criticizing other companies , in fact no other Omsco director does either other than yourself . Can you imagine if one of Arla's director's came on here incognito and continually slagged off Omsco and it's farmer board at every given opportunity ? It would be highly unprofessional and certainly not tolerated by Arla that's for sure


And don't forget this Omsco board director has been actively slagging off Red Tractor/ farm assurance on other threads on TFF.
 

Chips

Member
Location
Shropshire
So what you are saying is that anyone with an involvement in any dairy company shouldn't ask searching questions within another role of another dairy company?
Well thats the Local NFU office holders gone, the NFU dairy board finished, the AHDB board empty , plus many more.


Of course its sensible to ask questions. There is no such thing as a silly question.
If an Arla board member or rep or any other company wants to ask question I have no issue with that and will answer it to the best of my ability as i have done on here many times.

The majority of the conventional dairy farmers around here are Arla (ex ML) they are the ones in my role I hear from and get asked questions from. So I will guarantee that in the next week I will see one or get a call saying"if they can find €400million savings whats been going on before now"
That would be my first question of the company i own would it not be of yours?

I have never heard any NFU office holder other than yourself publicly offer flippant criticism of other farmers working to represent their fellow farmers . Asking questions is very different matter and when done in a professional and civil manner they are answered especially on here, however what you do is very different and you and everyone who reads this forum knows that .
 

Sid

Member
Livestock Farmer
Location
South Molton
And don't forget this Omsco board director has been actively slagging off Red Tractor/ farm assurance on other threads on TFF.
No I was pointing out that a non farm assured animal can become a farm assures animal. A non organic animal can never become an organic animal but only a converted animal.
That is an accurate fact is it not?
 
Location
Devon
No I was pointing out that a non farm assured animal can become a farm assures animal. A non organic animal can never become an organic animal but only a converted animal.
That is an accurate fact is it not?

Organic farmers can use conventional animals to sell organic milk from after 9 months on a organic farm is the actual fact. .

You have been slagging off RT/ farm assurance left right and centre which is clear for all that reads that thread to see and for a Omsco board member/ EX NFU dairy council member to be doing so is very surprising.

Even more surprising that a ex NFU dairy council member would be so anti one of the largest milk buyers in the UK.
 

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