Tarw Coch
Member
- Location
- Bottom of Wats Dyke
I realise the comparison to a Tesco shareholder might not be the best but none the less arla is a buisness that farmers have a share in, they dont have anything like the control over arla that they do over their own farms. Not that that matters providing they are happy with the direction of travelThe difference is: "Arla’s mission is to secure the highest value for our farmers’ milk while creating opportunities for their growth."
Even if you own Tesco shares and supply them, their is no way they are aiming to pay the highest price possible to their suppliers.
I cannot say Arla always get it right, but when things do go wrong, the farmer representatives try to help sort issues out on behalf of fellow owners.
The farmers appoint the representatives who in turn appoint the directors who in turn appoint the top management who in turn appoint everyone else. The management suggest the strategy which the board investigate and question and the board of representatives then approve (or not). The majority of farmers almost certainly agree with every decision once they understand the reason behind it, but their is probably not a single farmer owner who agrees with every decision, which is the nature of a democracy.