Milk Price Tracker

[Chips]

My conclusion is, either the benchmark data is incorrect or the constituents used for calculating the headline or standard price are too high.

The benchmark figures I guess will be for the whole of the UK and thus a lot of these farmers will be on liquid contracts and the constituents will be better than the milkprice.com standard litre for liquid , what would be good is to see the benchmark results from everyone on different contracts separated , i.e liquid, manufacturing and the same again with organic . Unless of course it already is ?

 

[buffalo_soldier]

Based on the benchmark data provided on the Arla website, the "company" (Arla) average BF clearly is not 4.2% or anything approaching it. BF% only briefly tips over 4.2% in late October and early November. It also appears, from the benchmark data, that an average Protein of 3.4% was never achieved during the last 12 months.

When i queried this the answer given was that they wanted to send a clear message about the quality of milk they want sending.

 

[farmer on a bike]

Farmer on a Bike,
Thank you, as always, very informative.

My 24.64p is per litre not kg; that is 24.16p

In this case we are still paying off capital contribution at 1.00ppl and are likely to be doing so for some considerable time. Our basic cost, as a small producer, typically equates to 0.52ppl. Plus we don't get any volume bonus. If I add those factors to the 24.64ppl I would see something like 26.66ppl. Adding your expected 13th Payment of 0.78ppl that brings the ppl to 27.44ppl. Then there is the AHDB levy of 0.060ppl (which I assume has to be added back as well). We are now up to 27.50ppl. The remaining difference must therefore be down to a lack of constituents; only BF in my case.

For me, there are two problem with the headline or standard rate. Firstly the 13th Payment, which (rightly or wrongly) I regards as a Return on Capital Invested and not a deferred payment for the milk supplied. The second problem involves the BF% & P% used in calculating the standard price. Based on the benchmark data provided on the Arla website, the "company" (Arla) average BF clearly is not 4.2% or anything approaching it. BF% only briefly tips over 4.2% in late October and early November. It also appears, from the benchmark data, that an average Protein of 3.4% was never achieved during the last 12 months.

My conclusion is, either the benchmark data is incorrect or the constituents used for calculating the headline or standard price are too high.

The standard price in fat & protein and farm volume has been chosen by Milk prices.com not Arla.

Arla do quote both the liquid (4 & 3.3) and manufacturing (4.2 & 3.4) both in the text and letter (on website) . For May liquid standard litre was 27.03ppl. As it happens Arla uses 4.2 & 3.4 (as a comparison RFC uses 4.41BF, 3.47P & 4.51 lactose) across Europe and we are of course moving to one manufacturing contract, hence why we now quote the manufacturing standard price before the liquid one. I get monthly data in the UKAF board pack with graphs splitting the contracts, oddly the combined graph does not quite agree with the benchmark data, particularly on fat, so I will ask about that.

Currently it would probably be fair to say that Arla's UK farmers are very close to there respective standard litres, the farmers on liquid contract are very close to 4 & 3.3 and the ones on manufacturing close to 4.2 & 3.4. In both cases they beat it on butterfat and just miss on protein.

The AHDB levy is not included in the Arla milk price as it is a UK deduction paid to an outside agency, I am sure no other company or co-op includes it in their milk price.

 

[Iogijones]

My graph doesnt even touch the avarage[emoji5]

 

[lazy farmer]

I do realise that if I was a member of Arla l would have got my head around the payment schedules but as an outsider and of course always a potential member of Arla it does all seem incredibly complicated and it does(if needed) serve to remind me how incredibly simple barbers contract is. no volume issues, standard litre is 4.1 bf 3.28 protein and the price I'm paid is 95% based on my own abilities.

 

[Cows 'n grass]

Snap.

 

[peclova]

The standard price in fat & protein and farm volume has been chosen by Milk prices.com not Arla.

Arla do quote both the liquid (4 & 3.3) and manufacturing (4.2 & 3.4) both in the text and letter (on website) . For May liquid standard litre was 27.03ppl. As it happens Arla uses 4.2 & 3.4 (as a comparison RFC uses 4.41BF, 3.47P & 4.51 lactose) across Europe and we are of course moving to one manufacturing contract, hence why we now quote the manufacturing standard price before the liquid one. I get monthly data in the UKAF board pack with graphs splitting the contracts, oddly the combined graph does not quite agree with the benchmark data, particularly on fat, so I will ask about that.

Currently it would probably be fair to say that Arla's UK farmers are very close to there respective standard litres, the farmers on liquid contract are very close to 4 & 3.3 and the ones on manufacturing close to 4.2 & 3.4. In both cases they beat it on butterfat and just miss on protein.

The AHDB levy is not included in the Arla milk price as it is a UK deduction paid to an outside agency, I am sure no other company or co-op includes it in their milk price.

Again, thank you.

Maybe I am alone in this way of thinking, but I would prefer to see notifications to pricing as X% increase (or decrease) in BF & P making each worth X pence per kg, rather than what appears to be a PR motivated desire to headline an inflated price per litre which have significant variance to what actually turns up in your bank account. The BF & P price per kg are in reality the only thing which is standard and are therefore what should be announced.

 

[Cows 'n grass]

It's really not that complicated when you see it written down.

 

[frederick]

I do realise that if I was a member of Arla l would have got my head around the payment schedules but as an outsider and of course always a potential member of Arla it does all seem incredibly complicated and it does(if needed) serve to remind me how incredibly simple barbers contract is. no volume issues, standard litre is 4.1 bf 3.28 protein and the price I'm paid is 95% based on my own abilities.

What are the figures to get your payment bf plus protein. What else is on the milk statement to get your total.

 

[Sid]

Organic price also gone up by 1.44p, taking it to 41.16p

Potter says
organic manufacturing standard litre price increases to 42.83ppl and the organic liquid standard litre price to 39.78ppl

So that doesn't tally from an Arla producer?

So what is the right price?

 

[frederick]

Potter says
organic manufacturing standard litre price increases to 42.83ppl and the organic liquid standard litre price to 39.78ppl

So that doesn't tally from an Arla producer?

So what is the right price?

Sid why do you need to know. When an arla farmer asks its a question worth answering.

So the UK is well informed perhaps you could forward the omsco price to Potter so he can publish that.

 

[worker]

Potter says
organic manufacturing standard litre price increases to 42.83ppl and the organic liquid standard litre price to 39.78ppl

So that doesn't tally from an Arla producer?

So what is the right price?

I quoted the standard price for those on the manufacturing contract, he quoted the liquid contract price

 

[Chips]

Potter says
organic manufacturing standard litre price increases to 42.83ppl and the organic liquid standard litre price to 39.78ppl

So that doesn't tally from an Arla producer?

So what is the right price?

The organic liquid went up by 1.38ppl if you add that to 39.78 you get 41.16 ppl , Ian has quoted the old price by mistake I would guess

 

[Sid]

Sid why do you need to know. When an arla farmer asks its a question worth answering.

So the UK is well informed perhaps you could forward the omsco price to Potter so he can publish that.

I think its important that inaccuracies are discussed and sorted. When i post a question posed by an Arla farmer i get accused of Arla bashing. So is a question from an Arla farmer worth asking or not?

Ian knows the OMSCo pricing mechanism.

Thanks @Chips for answering and sorting out the discrepancy.

 

[bar718]

I think its important that inaccuracies are discussed and sorted. When i post a question posed by an Arla farmer i get accused of Arla bashing. So is a question from an Arla farmer worth asking or not?

Ian knows the OMSCo pricing mechanism.

Thanks @Chips for answering and sorting out the discrepancy.

Did you ask the arla farmer if he had contacted his local farmer rep ?

 

[meekers]

View attachment 539312
My graph doesnt even touch the avarage[emoji5]

OK boys no need to show off!

 

[Sid]

Did you ask the arla farmer if he had contacted his local farmer rep ?

That's the biggest joke ever. @farmer on a bike will have to use that one on the forum now!
He said Arla( whether thats rep management i didn't ask) didn't listen so i took what he said on board.

 

[bar718]

That's the biggest joke ever. @farmer on a bike will have to use that one on the forum now!
He said Arla( whether thats rep management i didn't ask) didn't listen so i took what he said on board.

So you thought you in your capacity as county dairy board chairman for the nfu . Please correct me where I am wrong here in your role in local nfu as I am not in your area so I am intrigued.

 

[coomoo]

Look we're all making our way towards supplying the quality required again its the heartbreak of 23 so soon after 17 etc

 

[Sid]

So you thought you in your capacity as county dairy board chairman for the nfu . Please correct me where I am wrong here in your role in local nfu as I am not in your area so I am intrigued.

I am not a chairman