Milk Price Tracker

[farmer on a bike]

FOAB why do all UK buyers come out with excuses, there is a market out there and that is what should set the price . Prices everywhere are higher than the UK, you are all taking the Urine .

Arla is trying as hard as possible to lift prices in the UK, it's mission is to pay as much as possible to it's farmer owners. However it is a negotiation. There are customers and competitors involved in the negotiations, that is the reality. We could walk away and put our milk products on the commodity market which would have earned more over the past 6 months, but will it over the next 6 months? If you upset customers now, what happens when the market falls?

 

[supercow]

So Arla uk are holding back the whole of Arla currently?

 

[farmer on a bike]

Think I read somewhere once that Arla spend 10% of turnover on R and D is this correct? If so do the new products earn what are spent on them?

I think that is a way over estimate. That scale of figure would include all marketing activity rather than just being innovation, and even that sounds too high.

 

[farmer on a bike]

So Arla uk are holding back the whole of Arla currently?

I don't think that is a fair way to express it. The UK market is holding back Arla. At times the UK market, for example 18 months ago, the UK market was helping the whole of Arla. It is difficult to push retail prices up throughout Europe. There is always a lag to the commodity markets. In the EU market Arla have needed to push for a retail price increase of x percent in line with commodity markets. In the UK arla have needed to push for the same x percent but also plus another y percent for the fall in the value of the £.

Remember despite these issues Arla is at the top of the UK price league table and, given currency smoothing is still holding us back more than 1ppl, that is pretty significant.

 

[supercow]

Maybe not the best way to express it but there will always be a country that's holding Arla back slightly, was in not Germany the last few years through some type of politics? Today the uk market maybe holding Arla back

 

[Sid]

Maybe not the best way to express it but there will always be a country that's holding Arla back slightly, was in not Germany the last few years through some type of politics? Today the uk market maybe holding Arla back

I don't think that is a fair way to express it. The UK market is holding back Arla. At times the UK market, for example 18 months ago, the UK market was helping the whole of Arla. It is difficult to push retail prices up throughout Europe. There is always a lag to the commodity markets. In the EU market Arla have needed to push for a retail price increase of x percent in line with commodity markets. In the UK arla have needed to push for the same x percent but also plus another y percent for the fall in the value of the £.

Remember despite these issues Arla is at the top of the UK price league table and, given currency smoothing is still holding us back more than 1ppl, that is pretty significant.

Which means Arla will likely never be top of the conventional price league but also likely not to be at the bottom.

As we in the organic world call a "sustainable pay price"

 

[frederick]

The thing that worries me is that Arla are just like a bigger version of First Milk and now they are wrecking our milk price by other companies just paying the same because they can get away with it.

I honestly thought you were being sarcastic in your first post blaming your current milk price on arla.

However it appears you are deadly serious.

Instead of blaming your buyer who is exploiting you and returning the bare minimum to you so that they can buy another private jet you blame arla who have no involvement in your milk price at all.

Perhaps you should still thank arla. Because according to your logic if they werent setting the price your buyer would exploit you even further and pay you less because he could.

 

[Farmer1001]

If Meadow were a CooP they could have paid an extra 2.5ppl over the past couple of years based on performance and profits, would be interesting to compare that and their commodity model with the others and their brands model.

 

[Sid]

I honestly thought you were being sarcastic in your first post blaming your current milk price on arla.

However it appears you are deadly serious.

Instead of blaming your buyer who is exploiting you and returning the bare minimum to you so that they can buy another private jet you blame arla who have no involvement in your milk price at all.

Perhaps you should still thank arla. Because according to your logic if they werent setting the price your buyer would exploit you even further and pay you less because he could.

If Arla really are setting the price then its a MMC issue sadly.

 

[farmer on a bike]

Which means Arla will likely never be top of the conventional price league

I think you will find we are now, this month, with the possible exception of some very small players.

 

[frederick]

If Meadow were a CooP they could have paid an extra 2.5ppl over the past couple of years based on performance and profits, would be interesting to compare that and their commodity model with the others and their brands model.

They could have if they hadnt reinvested and grown the business using some of that profit. Not all of it has been pocketed.

 

[frederick]

Perhaps its actually aligned contracts that are holding the muller price back.
Muller maybe dont want the standard price to go to high so that there aligned producers who they seem to favour dont get too unhappy about the gap being the wrong way.
@jackrussell101

 

[Sid]

I think you will find we are now, this month, with the possible exception of some very small players.

Which is a good place to be but one swallow a summer does not make. Long term sustainably is what is needed and i hope Arla can deliver through the spread of risks and rewards.

 

[holstein654]

No rise, staying the same at 32.3 base.

Is that liquid or manufacturing milk?

 

[jackrussell101]

I still don't understand what's stopping Muller paying more though?

I think Arla's price in Euros is $36c. If Muller can pay 1.5c more than this in Germany then what's stopping them over here?

Useless Arla

 

[jackrussell101]

I knew the answer before i asked. @jackrussell101 so why are Arla holding your price back in the UK but not in the of EU?

Because Muller only pay what Arla pay.

 

[Fergieman]

All Muller suppliers are allowing the Muller family to cream off the profits. (pardon the pun)

 

[jackrussell101]

Arla UK now sets UK milk price and has done for the last 3 years

 

[jackrussell101]

At least with the Brexit and the incompetent idiots we have running this country the pound should be done for a while yet.

 

[jackrussell101]

Perhaps its actually aligned contracts that are holding the muller price back.
Muller maybe dont want the standard price to go to high so that there aligned producers who they seem to favour dont get too unhappy about the gap being the wrong way.
@jackrussell101

Maybe, and the Arla factor. At least the non-aligned has actually gone above your price now whereas Arla's is a proper price cap.