Milk Price Tracker

Sid

Member
Livestock Farmer
Location
South Molton
I think if you want to cut the expenses any lower you would exclude some farmers from being able to stand , as a one man band I had to pay relief labour to come in and cover me for two days , I also delayed my 1st cut by four days , had I decided to let the contractor do the whole job in my absence so as not to affect the farm it would have cost me over £1k extra on the bill while my machinery still carried on depreciating parked up . It was only a one of for me though anyway !
The day rates for elected reps are on the website for all to see .
Welcome to the world of being a board/membership member for farmers. I've take two weeks off, unpaid, to travel abroad. Great experience but someone had to cover me and thats not cheap but the same as you I don't do it for the money!
 

peclova

Member
Poor selling from the dairys, giving supermarkets the profit not the farmers.
What Arla needs is 10 block spring calving farmers to look at the business and cut out all the crap. All these essentials that Arla think they need but don't. That is a start too many hands in the pot[/QUOTE]

Spot on! It is exactly that..
 

peclova

Member
At times you perhaps could have identified issues like that, but the head count has been slashed over the last few years and certainly the farming team we work with work some long hours. We often get emails sent very late at night or on the week end. There are strict limits on overnight stay bills and meal bills when staff are travelling as well. In the time I have been involved there has rightly been a significant tightening of spend across the business. This process continues and Poul Krogsgaard, the Vice CEO concentrates on cost control across Arla, each year more and more cost has been removed.

I think it is more around very strong resistance to price increases from the supermarkets, which cannot continue when markets are strengthening. That is along with the currency smoothing issue which still owes us another 2ppl currently. There are also known issues in Germany, where as a result, Arla has walked away from significant business, placing the milk onto the world market in various products instead, which looking like it could be a very well played bet given the way markets have moved in the last 2 weeks.


Do you not think there is too much positive spin put on things by corporate PR. Hardly a week goes by when I don't get some "how everything is perfect" newsletter from the PR department. Whilst nobody likes to wash their dirty linen in public it would be much more reassuring to read some "bad news" story, together with details of what has been done to remedy it. It isn't just Arla who make this mistake, other businesses do the same thing. The trouble is the people running those businesses have a tendency to start to believe their own propaganda, That is when they become (protected in their high paid corporate cocoon) deluded to the reality of what is really happening.
 

Chips

Member
Location
Shropshire
Do you not think there is too much positive spin put on things by corporate PR. Hardly a week goes by when I don't get some "how everything is perfect" newsletter from the PR department. Whilst nobody likes to wash their dirty linen in public it would be much more reassuring to read some "bad news" story, together with details of what has been done to remedy it. It isn't just Arla who make this mistake, other businesses do the same thing. The trouble is the people running those businesses have a tendency to start to believe their own propaganda, That is when they become (protected in their high paid corporate cocoon) deluded to the reality of what is really happening.

I think to be fair , they told you on the website only a week ago or so that they had failed to secure supermarket business in Germany as they could not get a decent price from them . Not a good news story at the time as all that milk needs to find a home , as it turns out it looks like it's going to be a good news story as markets have turned since then to a point where that milk will be far more profitable in our trading side of the business than own brand German milk for now and buy us a bit of time to find more profitable long term homes for that milk .
They told us a year ago or so that they had to lay off 500 staff globally , not a good news story at all for many reasons , 1. the fact that we could find that many to lay off , 2 . the business was in a shape that it needed to do that , 3. some of those staff were not surplus and will be needed again in the future and 4. the biggest of all is that they were all real people with mortgages and families like the rest of us and so no I don't think we can say Arla shy away from telling us the bad news too , I think thanks to the democratic structure that it employs it is far more open and honest than any other milk buyer I can think of, and if we think it's not, then it's up to us the owners through it democratic structure to make sure it is
 
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Cowmangav

Member
Location
Ayrshire
25.49 allegedly - Scottish mainland.

So the expected fall in the spot market is enough to tumble prices going into the spring , and when the spot market does nothing of the sort , our price falls because the rest of the industry decided to exploit their suppliers.
 
25.49 allegedly - Scottish mainland.

So the expected fall in the spot market is enough to tumble prices going into the spring , and when the spot market does nothing of the sort , our price falls because the rest of the industry decided to exploit their suppliers.
Most likely DC more cuts for July will you get that as well?
 

Chips

Member
Location
Shropshire
0.35 for us
Arla to blame?

Given that arla is returning enough from the UK market to return a top of the table milk price pre the currency smoother , how do you work out Arla is to blame for other processors price cuts ? If our price was where it is pre the currency smoother you may have a point , as it isn't it just highlights other milk purchasers ability to exploit it's suppliers or their weak selling power , either way you need to be looking closer to home, not blaming others .
If you ride on others shoulders don't complain if the ride is bumpy , if you don't like it get off and walk yourself
 
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meekers

Member
Do you not think there is too much positive spin put on things by corporate PR. Hardly a week goes by when I don't get some "how everything is perfect" newsletter from the PR department. Whilst nobody likes to wash their dirty linen in public it would be much more reassuring to read some "bad news" story, together with details of what has been done to remedy it. It isn't just Arla who make this mistake, other businesses do the same thing. The trouble is the people running those businesses have a tendency to start to believe their own propaganda, That is when they become (protected in their high paid corporate cocoon) deluded to the reality of what is really happening.

Exactly the point I keep making. I actually think the BOR and its reps start believing all this positive propaganda as well and that's what makes membership to become detached from the coop. If you don't recognise that it isn't all smelling of roses at farm level then you will not get the respect of the members. It was very disheartening to see the lack of new people standing at local elections- only two areas had more than two candidates I believe. I'm sorry, this is not a case of "have a pat on the back boys keep up the good work". It is more like the members are so disheartened by the whole Arla coop. The amount of people that said to me why are you going to stand and that it was a waste of time because no one listens anyway. Will they be correct? Only time will tell.
 

Cowmangav

Member
Location
Ayrshire
Given that arla is returning enough from the UK market to return a top of the table milk price pre the currency smoother , how do you work out Arla is to blame for other processors price cuts ? If our price was where it is pre the currency smoother you may have a point , as it isn't it just highlights other milk purchasers ability to exploit it's suppliers or their weak selling power , either way you needing to be looking closer to home, not blaming others .
If you ride on others shoulders don't complain if the ride is bumpy , if you don't like it get off and walk yourself
The FM price comes from a basket of competitors prices. Do you think they will put in the mirage Arla price ( pre currency adjustments) or the actual Arla price paid?
 

Chips

Member
Location
Shropshire
The FM price comes from a basket of competitors prices. Do you think they will put in the mirage Arla price ( pre currency adjustments) or the actual Arla price paid?

Like I said , if the ride on your friends shoulders is too bumpy get off and walk yourself . I don't mean that in an offensive way , but it's a bit much to expect someone else to drive price for you and then complain when it doesn't suit , Arla is not selling cheap milk in the uk due to it's currency smoother , the AMBA price is circa 29p so if you're not achieving that it is not Arla's fault is it
 

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