Future of first milk

[RastaBoy]

First Milk remind me of Countrywide Farmers.
Sell off the family silver in dribss and drabs. Build up employees pension funds as far as possible and when hey presto nothing left to sell go into receivership.
Not if when.

 

[supercow]

At the end of the day I'm not going to complain about the first milk bashers today because i do a fair bit of arla bashing myself. As a smaller coop they have to make harsh decisions, arla aren't exactly covering themselves in glory at the minute either. What I am certain about is they would not have made this decision with the risk of producers being left stranded. They are increasing capacity in the other factories and as Shelia says Campbeltown and arran creameries needed a lot of investment, it would be a massive risk first milk investing in every single factory, they'd have to take it off their producers to pay for it all, which would end up being a downward cycle. First milk really is a good spot to be, believe it or not. especially with coming out of Europe. For the first time in a very long time not many others I'd sell to, but you have to be ticking the boxes, with volume, seasonality, production bonus, cell count bacto to get a reasonable price. There will be a lot of fm producers on low twentys because they are not ticking the boxes

 

[supercow]

First Milk remind me of Countrywide Farmers.
Sell off the family silver in dribss and drabs. Build up employees pension funds as far as possible and when hey presto nothing left to sell go into receivership.
Not if when.

Do you really think they'll go into receivership? What are you basing your opinion on?

 

[supercow]

Creameries to close who will go next small producer beware!!!!!!!

From just talking to few round here everyone's struggling, small producer who hasn't invested and poor performance but doesn't have the loan overhead but struggling away, folk that have invested heavily are not happy they have a loan to pay the hefty loan but cow performance is good , or is that just us!!

 

[westwards]

At the end of the day I'm not going to complain about the first milk bashers today because i do a fair bit of arla bashing myself. As a smaller coop they have to make harsh decisions, arla aren't exactly covering themselves in glory at the minute either. What I am certain about is they would not have made this decision with the risk of producers being left stranded. They are increasing capacity in the other factories and as Shelia says Campbeltown and arran creameries needed a lot of investment, it would be a massive risk first milk investing in every single factory, they'd have to take it off their producers to pay for it all, which would end up being a downward cycle. First milk really is a good spot to be, believe it or not. especially with coming out of Europe. For the first time in a very long time not many others I'd sell to, but you have to be ticking the boxes, with volume, seasonality, production bonus, cell count bacto to get a reasonable price. There will be a lot of fm producers on low twentys because they are not ticking the boxes

@supercow where did FM invest the money they have taken form all the Scottish producers in the last 2/3 years ? It was not in Arran or Campbeltown and it will be a good few £££KKK

The reason they want to sell is not lack of investment in equipment at the creamery, its not wanting to invest in marketing the bloody product for 3000 tons they only want big tonnages sold to big customers !!

 

[supercow]

@supercow where did FM invest the money they have taken form all the Scottish producers in the last 2/3 years ? It was not in Arran or Campbeltown and it will be a good few £££KKK

The reason they want to sell is not lack of investment in equipment at the creamery, its not wanting to invest in marketing the bloody product for 3000 tons they only want big tonnages sold to big customers !!

End of the day it's not great news but if the creameries aren't giving a good return why invest. They will still pick up everyone's milk with no haulage charge so I don't see the issue!

 

[supercow]

Also, all the first milk nay Sayers that are continuing to slag them is probably not the right thing to do, only way they will get their money back is if share price rises, and for that to happen they need to recruit and perform well. so your just depressing yourself with the same old pish 'they've got my dads retirement fund'

 

[peclova]

[QUOTE="westwards, post:

The reason they want to sell is not lack of investment in equipment at the creamery, its not wanting to invest in marketing the bloody product for 3000 tons they only want big tonnages sold to big customers !![/QUOTE]

That is the way the industry is going. Massive multinationals or small niche operations. The middle size businesses will be sqeezed out without neither the economies of scale and clout of the big boys or the passion and personal service of the specialist small business. The same will apply to milk producers and processors

 

[Cowmangav]

End of the day it's not great news but if the creameries aren't giving a good return why invest. They will still pick up everyone's milk with no haulage charge so I don't see the issue!

You can't haul milk 140 miles out of Campbeltown though.

 

[Cowmangav]

Best used in situ.

 

[westwards]

You can't haul milk 140 miles out of Campbeltown though.

That was OK when they had a contract to supply Wiseman at Belshill, now it would need to go to Graham's or LDC

 

[Cowmangav]

I don't know what my father would think of milk going from Ayrshire up to Bridge of Allan , only to come back down to Ayrshire to be drunk. They call it progress.

 

[RastaBoy]

They only j

Do you really think they'll go into receivership? What are you basing your opinion on?

They only have so muchbto sell.

 

[vantage]

Also, all the first milk nay Sayers that are continuing to slag them is probably not the right thing to do, only way they will get their money back is if share price rises, and for that to happen they need to recruit and perform well. so your just depressing yourself with the same old pish 'they've got my dads retirement fund'

My dad's dead. That's my money I put in.

 

[Alfred]

@supercow where did FM invest the money they have taken form all the Scottish producers in the last 2/3 years ? It was not in Arran or Campbeltown and it will be a good few £££KKK

The reason they want to sell is not lack of investment in equipment at the creamery, its not wanting to invest in marketing the bloody product for 3000 tons they only want big tonnages sold to big customers !!

Farmer buyout?? Including the capital already invested in fm by producers in on the deal.

 

[Farmer1001]

Farmer buyout?? Including the capital already invested in fm by producers in on the deal.

assuming appraisal has been done by FM, how much investment is needed, and if it's not viable for FM then why would it be for anyone else? Or is it profitable but simply doesn't fit the FM CooP.

 

[Alfred]

assuming appraisal has been done by FM, how much investment is needed, and if it's not viable for FM then why would it be for anyone else? Or is it profitable but simply doesn't fit the FM CooP.

Most businesses can be made profitable with the right management! The product is already there, and A GOOD ONE!

 

[Married 2 The Mob]

Farmer buyout?? Including the capital already invested in fm by producers in on the deal.

I was wondering, if you valued the supplying farmers shares in FM at full original value, add in a bit of grant from Queen Nicola. How far would that stretch to a supplier buy-out?

 

[miniconnect]

assuming appraisal has been done by FM, how much investment is needed, and if it's not viable for FM then why would it be for anyone else? Or is it profitable but simply doesn't fit the FM CooP.

The bottom line is they can't sell or can't be arsed to try to sell cheese. In the late 90s it was spoke about as a very profitable creamery, I know the world has changed a lot since then. But some new stainless and other modernisation and people capable of marketing cheese in some shape or form don't see why it couldn't be profitable if they don't sell the rights to the Irish or syphon off the profits to upgrade other sites.. .

Farmer buy out.. as lovely as it sounds, I'm out.

 

[supercow]

Most businesses can be made profitable with the right management! The product is already there, and A GOOD ONE!

Was that a first milk compliment?