Milk Price Tracker

On todays exchange (i know this is a hugely debatable point.) that puts arla at a smidge over 30ppl, how much higher can we expect it to go, dont you think we will now just have to wait for the currency smoothing every 3 months.

Dont bite my head off for this im not sayings its great, just pointing out how it works.

You are quite right but there are still significant contract to renegotiate particularly around the start of the second quarter so I wouldn't be too negative. In early 2014 the milk price was 8 euro cents higher than now.
 
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best of it would just settle #27/28ppl
 
@Only @William Mellor Had a letter off meadow about balancing? wondered how long it would be before they'd tinker the b system more in their favour.
Yep same had letter but not read thro it all yet. They were admit a few months ago when a lot of milk buyers were abolishing a+b pricing that they weren't doing so. They've dropped my a litres (well from what 100% was before they dropped it to 80%) which I am not happy about:mad: and will be appealing , based on what I've produced in the last 12 months,
 

Einstien

Member
Sorry, but what rubbish.

I'm not saying ARLA could never go tits up but the scale and trading history they have makes them a lot more secure than most local dairies. ARLA are the only buyer around here now that all the smaller daries have gone bust, most of them owning farmers money.

As for ARLA not being for those who want to grow their business, can you please tell me who else guarantees to pick up every litre you produce and pay you the headline price? If it weren't for TB I would have gone from 220 to 520 cows in 3 years at a time when other buyers were introducing A and B schedules. If I'd been on one of those I'd probably be bust by now.

No that's rubbish, most local processors would love the extra milk (most of the time) and VERY FEW have put any limit on collections. This is just "ARLA Scaremongering"
 

Einstien

Member
That is not correct Arla are not taking any debt to operate the system. It is operated within the co-op.

All the money is allocated each month using the exchange rate conversion based on average of previous 8 quarters for Sweden & UK. So if currently the exchange rate is lagging for the UK as now, then is slightly boosts the overall euro price Arla pay.

As it happens Sweden are slightly on the up side so that tends to balance the situation so the overall euro price paid would not change much if we went to say a one quarter average, just the UK price would increase and the Swedish price decrease. 12 months ago the situation was exactly the opposite.

Joke of the day right - you don't think a) it costs any money to run the system - if it costs, you are paying for it trust me! and b) you don't think that by delaying revenue either way has a negative (and positive) effect on ARLA's financials, thus as they are overall debt heavy, this is going to be costing something to achieve, even if it is an opportunity cost, the member will ultimately pay!

Ah well keeps another team of ARLA employee's busy, and give the paid attendees of a meeting something to talk about I guess!
 

Einstien

Member
As very often with anti farmer co-op comments they are the exact opposite of what is reality . If you wish to expand you will not have to pay additional fees for those litres , thus you only paid the 7p on the litres you had when you join despite getting the full price on all the expanded litres . If you stick at the litres that you had on joining you will receive no more than than the expanded farm despite you having paid 7p on every one of your litres and thus in reality if you have already maxed out your business as you say, you will be part subsidising the guy who wants to expand and thus the opposite of what you say is true

NO, take a young farmer trying to get into Dairying and tell them they have bankroll ARLA's Capital Requirements out of their milk cheque at the same time as trying to get their own cashflow in order - sorry but as the majority of long term farm owners can't make a Dairy Farm work, this just does not work, THIS IS THE difference between a Paper Plan and Reality...
 

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