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Milk price


The recent drop in the milk price by Arla is extremely disappointing. I cannot believe that those lapdogs in the arla milk partnership lamely came out and said they were happy with the milk price! What are Jonathon Ovens and Wesley Abbey playing at?

Milk link have dropped their price as well and so it will no doubt continue.

Arla have become tight with Asda (owned by Wal-mart) so we can expect that the price has been beaten down by Asda as they are starting to lose market share.

As I understand it there are no real reasons for the price to be heading south at the moment. As usual we are having the pickle taken out of us by rest of the supply chain.

If you compare the milk supply to the structure of brewing where the brewers own, or did own, lots of pubs, thereby controlling the price it would seem to me the only hope of ever improving the milk price is to totally change the way milk gets to the consumer.
10/6/2005, 20:44 Link to this post PM via Email   PM via Forum
 
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Re: Milk price


I put a rocket up one of the milk-link council members, and although there is going to be a price cut part of it is a re-structure of the composition payments.

The really ridiculous thing about it is that Milklink brought in an A and B quota system to reduce the spring peak. This has been so effective that they haven't had enough milk to run the processing efficiently, so have had to claw back some monies lost. emoticon emoticon emoticon
10/6/2005, 22:35 Link to this post PM via Email   PM via Forum
 
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Re: Milk price


What remuneration do Jonathon Ovens and Wesley Abbey get for being chairman & vc arla milk partnership? I think Ovens makes his money from sources other than milking cows.

With the drop in output I should think less milk than expected has gone into westbury this spring.
10/6/2005, 22:57 Link to this post PM via Email   PM via Forum
 
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Re: Milk price


From Potter's website

quote:

Arla to proceed with milk price cut

After three meetings with Tim Smith of Arla it seems FFA'S David Handley has been strung along with both Smith and the AMP Chairman Jonathan Ovens standing firm on the [sign in to see URL] drop which has resulted in all out war with the various NFU's and FFA standing shoulder to shoulder. Arla in a statement commented "no justification for any disruption of supplies or other action from any farmer members of the groups present at the meeting". Ovens, whose reign as Chairman of AMP is under serious threat, seemed to believe he and his disciples had sufficient support and or power to ensure no Arla suppliers would join any action. He was wrong on that count. It took Handley minutes to rally support and 22 AMP suppliers were out at Ashby last night with others out at Sheffield and a group in Derbyshire are pushing hard for a meeting with Ovens and have had enough. FFA believe Arlas CE had two alternatives, to issue a profits warning to shareholders and the city or drop the price paid to farmers. The meeting was heated and Ovens still believes his agreement to the price drop was correct.

Direct Action by FFA is the only game in town and with a number of Arlas Danish management at Arlas Royal Highland Show stand this week security could be an issue. Any action against retailers is on hold given the fact one is believed to be reconsidering its contract with Arla not to mention the threat action could pose with the likes of Tesco and the cheese initiative which is starting to filter through. Processors like Arla cannot be allowed to sell cheap milk, retain their same processing margin, and pass the cost back to farmers.

ITS TIME FOR EVERY FARMER TO STAND UP AND BE COUNTED ON THIS ONE. IF YOU DON'T YOU DESERVE EVERYTHING THE LIKES OF ARLA THROW AT YOU.

As of lunch time today (23rd June) FFA members including Arla suppliers have closed Arlas Ashby plant with nothing going in or out. It should remain closed for as long as sufficient farmers turn up.



Last edited by MarkDay, 24/6/2005, 14:51


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24/6/2005, 14:49 Link to this post PM via Email   PM via Forum
 
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Re: Milk price


I suppose the French would think nothing of this, but to me its pretty hair-raising stuff. There is an awful lot at stake now...

The one problem with taking a stand is, it is very hard to back down without losing your credibility or bargaining strength for good. But I suppose things had to come to this crunch eventually.
24/6/2005, 17:00 Link to this post PM via Email   PM via Forum
 
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Re: Milk price


quote:

FiringOnAllFour wrote:

I suppose the French would think nothing of this, but to me its pretty hair-raising stuff. There is an awful lot at stake now...

The one problem with taking a stand is, it is very hard to back down without losing your credibility or bargaining strength for good. But I suppose things had to come to this crunch eventually.



I've stood outside a Tescos Depot in the middle of the night before now and that kind of action against the retailers has been [sign in to see URL] picketing the actual company that buys your milk is risky indeed.
Perhaps FFA should organise non Arla suppliers to blockade them and send Arla suppliers to Dairycrest etc.


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Bickleygate holsteins

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24/6/2005, 18:21 Link to this post PM via Email   PM via Forum
 
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Re: Milk price


  I know of 2 Arla suppliers in the north of England that give Arla abit of stick in the press

  1 had his contract cancelled the other got a strongly worded letter off Owens!!!


24/6/2005, 18:25 Link to this post PM via Email   PM via Forum
 
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Re: Milk price


Yea. I think action is a good thing. It sure beats stalemate.

Although our supply chain isn't very good at earning for us, it does find a market for our milk and therefore we can't do without it. So I hope that those taking action have thought through the consequences before moving - as we need to be careful not to damage the system further. We don't want them looking hard at alternative milk supplies and losing milk sales etc.

As much negative publicity as possible makes them sit up and listen.
25/6/2005, 11:36 Link to this post PM via Email   PM via Forum
 
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Re: Milk price


On the upside of milk prices we have around a 11% pricerise for next season, BUT only cause the factories dont want more farmers to drop out and their milk supply to dwindle

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26/6/2005, 6:48 Link to this post PM via Email   PM via Forum
 
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Re: Milk price


 Our Semex rep was in Canada in April and they were getting about 32p/litre for milk ... that is 77% more than what I'm currently getting. On my quota that would give me an extra 117k in the bank !!!


26/6/2005, 20:44 Link to this post PM via Email   PM via Forum
 


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