Future of first milk

[westwards]

They could not contiue to pay out £1 for every £1 capital you put in that was the road to oblivion, the value of the company will go up as they continue to trade profitably and invest, but the biggest asset they have is a milk pool and if the price is not up there with the rest then they will not recruit, I hear they are going to try to get there so they can attract new suppliers. So bring it on faster. 1.5p nov 1.5p dec

 

[supercow]

I knew that would get a small reaction. This thread was getting borning

 

[PREES]

@PREES How do you pay a dividend to producers without having to pay those who have left but still hold capital ?

Possibly by paying a 13th payment based on the volume of milk sold and the capital contribution so if the volume sold equals zero (ie the "member" has left) the 13th payment is zero!

My money is STILL in FM ,so how has it been weakened?

It could be argued (as has been the case by many former FM members on TFF) that FM is weaker because members have left and until lately volumes have follow.

What happens when its your money and shares that are at stake? Pretty poor attitude some people have effectively lost ten of thousands propping up FM

Current members would argue that the capital contribution was part of the contract to supply FM, if a producer chose to leave they were aware of the "risk" of so doing so to discrimination it as "propping up FM" is not accurate - you made the choice you take the consequences!

 

[O'Reilly]

They could not contiue to pay out £1 for every £1 capital you put in that was the road to oblivion, the value of the company will go up as they continue to trade profitably and invest, but the biggest asset they have is a milk pool and if the price is not up there with the rest then they will not recruit, I hear they are going to try to get there so they can attract new suppliers. So bring it on faster. 1.5p nov 1.5p dec

And that's how they fouled it up before, paying more than they could afford.

However, one mans disaster is another's opportunity. There may never be a better time to buy in to fm , since shares are trading so cheaply

 

[Keirkid]

Now how would this work? All old members with shares sell them to potential members without,to drive up the price to the current member who can’t afford to buy them and the company who take a half p/l off / month would have to pay more for the milk which would make us less profitable.

 

[Cuckoo's nest]

If we have lost so much milk in Scotland why do we need 3 Scots on the Council ? If its going to be split up into area's are we going to get someone who has no local knowledge ?

 

[bigw]

Do FM have liabilities to the milk pension scheme?

 

[dinderleat]

At the scheme's most recent triennial valuation, dated 31 March 2015, it had an actuarial deficit of £62m and an 87% funding level. Assets and liabilities totalled £403m and £465m respectively.

 

[The Agrarian]

In our co-op, shares are only traded between the shareholding member and the co-op. I.e. when a member ceases to supply. They are valued at £1 per share, as per UK rules. The shares bought from the leaving member are effectively cancelled by the co-op. No need to make it complicated.

I honestly can't understand how or why First Milk didn't do this all along. By not returning share capital, they have brought upon themselves the reputation for not honouring their debts. Very poor housekeeping in my humble opinion. Catastrophically bad for member morale, and presumably a big deterrent to potential customers who know the score.

Sorry to be harsh, but it's not the way we're used to doing business.

 

[Cuckoo's nest]

In our co-op, shares are only traded between the shareholding member and the co-op. I.e. when a member ceases to supply. They are valued at £1 per share, as per UK rules. The shares bought from the leaving member are effectively cancelled by the co-op. No need to make it complicated.

I honestly can't understand how or why First Milk didn't do this all along. By not returning share capital, they have brought upon themselves the reputation for not honouring their debts. Very poor housekeeping in my humble opinion. Catastrophically bad for member morale, and presumably a big deterrent to potential customers who know the score.

Sorry to be harsh, but it's not the way we're used to doing business.

When you have farmer Directors and a Chairman who can't cut the milk price when the finance Director tells them they need to and then go on to lose £27 MILLION they have to take drastic measures.
They use to pay retiring members and leavers £1 per £1 capital you had over a period of years, they went so near to bust they could not afford to pay their debts to ex members, that's what happens when farmers loose control of what used to be a Co-op.

 

[Married 2 The Mob]

As Cuckoo's nest says, @The Agrarian
Your system is much like what used to happen.
This new one was brought in to quickly reduce liabilities.

 

[Coo man]

As Cuckoo's nest says, @The Agrarian
Your system is much like what used to happen.
This new one was brought in to quickly reduce liabilities.

First milk needs to ditch the first milk name and rebrand

 

[O'Reilly]

First milk needs to ditch the first milk name and rebrand

Oh yes, just what they need, pish money away on something like that

 

[vantage]

First milk needs to ditch the first milk name and rebrand

It has,still got the same name ,but is no longer a coop.

 

[jockthethistle]

What a great discussion has been had over the weekend .. Ideas exchanged .. Points raised solutions provided .. Is that not what the forums for ... ! Oh. how's your arse m2tmob .. working well I hope .! j

 

[supercow]

i love open, honest discussions on tff, does the farming world the power of good

 

[Sid]

I was astonished at how much the directors are getting paid!

I do like in the accounts the attendance records for meetings.

 

[Coo man]

I was astonished at how much the directors are getting paid!

I do like in the accounts the attendance records for meetings.

That’s why we left in 2008 , top dogs doing feck all but paid a fortune

 

[Sid]

That’s why we left in 2008 , top dogs doing feck all but paid a fortune

Money doesn't always buy the best.

 

[Married 2 The Mob]

Doing fine @jockthethistle, thanks for asking. Is this further evidence of your deep concern for FM members?