Covid 19.. Milk price impact?

The 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.
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 travel
 
Sorry to hear about this, you must have the same milk buyer as us. Ours was worse than that even, 40% of April milk was at 5ppl, 60% at 11ppl, averaged out at around 9ppl for the whole month. Most milk we turned out on the farm was in April, so got penalised for producing more then previous years. It was only 2015 we had the last shoeing milk price wise, and I'm pretty sure a lot are still recovering from thst crash, only to be welcomed by this shambles. Leaves very little options unfortunately.
Which milk buyer?
 

Farmer Keith

Member
Location
North Cumbria
The 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.

I really don’t think you need to spend any of your time defending Arla or the way in which it’s run. We finally have a coop in the UK that is delivering and long may it continue.

What we really need to see is some of the privately owned processors stepping up and ensuring their suppliers get a fair price right now, which in some cases clearly is far from the case.
 
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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 travel
That is not the point. They key difference, and it is a huge difference, is that mission statement and the difference it makes to how the company acts. I could buy shares in another processor but they would not have that mission statement unless they were a farmer owned cooperative.
 
Location
southwest
If Arla is truly run by it's farmer members, why did we have a 25+ page thread a few months ago about Arla telling farmers they had to rear (or make sure someone else did) all their calves?

Surely the Coop should defend the farmer members practices, not dictate them?
 

frederick

Member
Location
south west
If Arla is truly run by it's farmer members, why did we have a 25+ page thread a few months ago about Arla telling farmers they had to rear (or make sure someone else did) all their calves?

Surely the Coop should defend the farmer members practices, not dictate them?
Retailers have things they would like farmers to do.
Arla listen to there customers and respond. Freshways simply wanted there farmers to produce white water and paid no further interest. We can watch how that unfolds.
 
That is not the point. They key difference, and it is a huge difference, is that mission statement and the difference it makes to how the company acts. I could buy shares in another processor but they would not have that mission statement unless they were a farmer owned cooperative.
Perhaps the comparison to a Tesco shareholder wasn’t the best but the fact is no farmer is in control of arla, they are merely members.
I’m not having a pop at arla, they are currently leading the way on milk price and good on them but from what I see there is no shortage of members and ex members who have plenty of complaints about them, surely if it was “their” buisness they’d be able to do something about it.
 

Chips

Member
Location
Shropshire
Perhaps the comparison to a Tesco shareholder wasn’t the best but the fact is no farmer is in control of arla, they are merely members.
I’m not having a pop at arla, they are currently leading the way on milk price and good on them but from what I see there is no shortage of members and ex members who have plenty of complaints about them, surely if it was “their” buisness they’d be able to do something about it.
The last thing you want is a large multinational dairy company being run by farmers , it would be an almost instant road to ruin, we're farmers not marketeers . However being overseen by democratically elected farmers is a good balance . It would be very rare for the farmers to over rule management but it can happen , I have seen it happen and there is nothing that could not be over turned by the farmers were there the democratic will for it to happen .
 

bar718

Member
Perhaps the comparison to a Tesco shareholder wasn’t the best but the fact is no farmer is in control of arla, they are merely members.
I’m not having a pop at arla, they are currently leading the way on milk price and good on them but from what I see there is no shortage of members and ex members who have plenty of complaints about them, surely if it was “their” buisness they’d be able to do something about it.
The type of control you refer to would only be possible if the farmers processes and sells his own milk. The only way a business the size of Arla can be run is through a democratic structure otherwise there would be 10000 different ideas of how things should be each with a vested interest on their own business at home and how decisions will affect them personally. Could you see that working.
 

Sid

Member
Livestock Farmer
Location
South Molton
The last thing you want is a large multinational dairy company being run by farmers , it would be an almost instant road to ruin, we're farmers not marketeers . However being overseen by democratically elected farmers is a good balance . It would be very rare for the farmers to over rule management but it can happen , I have seen it happen and there is nothing that could not be over turned by the farmers were there the democratic will for it to happen .
Neither do you want it run by accountants or managers that do not understand the on farm issues or the "ethos " of a coop, that is where farmer reps come in. Sometimes it's about doing the "right thing"
 

Sid

Member
Livestock Farmer
Location
South Molton
The type of control you refer to would only be possible if the farmers processes and sells his own milk. The only way a business the size of Arla can be run is through a democratic structure otherwise there would be 10000 different ideas of how things should be each with a vested interest on their own business at home and how decisions will affect them personally. Could you see that working.
Organic versus conventional
Plant based versus animal based
Indoors versus grazing

You have to think about how a decision will affect each individual member.
 

Sid

Member
Livestock Farmer
Location
South Molton
Retailers have things they would like farmers to do.
Arla listen to there customers and respond. Freshways simply wanted there farmers to produce white water and paid no further interest. We can watch how that unfolds.

But hoops cost money, and freshways have a place in the market, Starbucks were happy enough to drop Arla for Freshways in the past, it was the owners behaviour that was the issue.
 
Perhaps the comparison to a Tesco shareholder wasn’t the best but the fact is no farmer is in control of arla, they are merely members.
I’m not having a pop at arla, they are currently leading the way on milk price and good on them but from what I see there is no shortage of members and ex members who have plenty of complaints about them, surely if it was “their” buisness they’d be able to do something about it.
In my experience when members have contacted me about a problem, we have managed to sort it. I have become aware of a couple of issues where members had problems but were mistakenly unwilling to talk to me about them. I think I would have been able to help sort out their problems but did not get a chance. In my experience Arla staff have always put in the extra yard to help members, if 1. They are able to fully understand the problem sometimes with the help of a farmer representative and 2. The farmer involved does not get extremely offensive and abusive. By that I do mean extremely, which I have seen on occasion and makes solving things much more difficult, but still not impossible.
 
If Arla is truly run by it's farmer members, why did we have a 25+ page thread a few months ago about Arla telling farmers they had to rear (or make sure someone else did) all their calves?

Surely the Coop should defend the farmer members practices, not dictate them?

The majority of the members agree that killing calves is no longer an option if we want to drive our dairy industry forward and keep our customers (by which I mean the consumers). We have to sort this out as an industry or we loose a lot of sales over time.
 

Cowabunga

Member
Location
Ceredigion,Wales
Sorry to hear about this, you must have the same milk buyer as us. Ours was worse than that even, 40% of April milk was at 5ppl, 60% at 11ppl, averaged out at around 9ppl for the whole month. Most milk we turned out on the farm was in April, so got penalised for producing more then previous years. It was only 2015 we had the last shoeing milk price wise, and I'm pretty sure a lot are still recovering from thst crash, only to be welcomed by this shambles. Leaves very little options unfortunately.
Yes, it is the same here. We got reamed in 2015 as well. The timing is never good but it is particularly bad for me, as I near the point of retirement. We are not the only industry suffering of course but fairly unique perhaps in the inequality of the pain wrought on businesses that have all the running costs regardless, 7 days a week come rain, shine, death or financial shitstorm.
 

Enry

Member
Location
Shropshire
Yes, it is the same here. We got reamed in 2015 as well. The timing is never good but it is particularly bad for me, as I near the point of retirement. We are not the only industry suffering of course but fairly unique perhaps in the inequality of the pain wrought on businesses that have all the running costs regardless, 7 days a week come rain, shine, death or financial shitstorm.
who is your milk buyer?
 

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