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errolston
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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.

---
Errolston_Holsteins updated 27th October 2007.
10/6/2005, 20:44   
 
Big Bird
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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   
 
friar
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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   
 
MarkDay
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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 0.35ppl 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


---
Bickleygate holsteins

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24/6/2005, 14:49   
 
FiringOnAllFour
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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   
 
MarkDay
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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 effective.But 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.


---
Bickleygate holsteins

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24/6/2005, 18:21   
 
Will Richardson
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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   
 
FiringOnAllFour
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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   
 
Craigalea
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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

---
A quote from the merchandise department: "Difficult takes a while, Impossible I can do right away"
26/6/2005, 6:48   
 
Will Richardson
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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   
 
alan a
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Re: Milk price


Yes, but qouta is about £1.20 per litre in Uk terms.

But they do get a good return for their milk and can actually plan on making a profit on an annual basis. The Canadian farmers also seem to have some influence with their government.

Even with the BSE situation, when we were there last September, the farmers who made their living from the milk cheque were still doing well. Those dependent on genetic sales were struggling much more.

---
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26/6/2005, 21:20   
 
MarkDay
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Re: Milk price


FFA announces launch of major campaign on farmgate prices
29/06/2005 15:47:00
FWi

FARMERS FOR Action has announced the launch of a major new campaign on farmgate prices.

The organisation said the move followed confirmation that Robert Wiseman Dairies intends to cut its milk price by 0.25p/litre.

FFA chairman David Handley said he had decided to bring forward a plan which he had intended to launch this autumn.

“We now intend to demand from retailers a 3ppl milk price increase. This is totally justified as we are now seeing demand outstrip supply.”

FFA has said its efforts to obtain realistic farmgate pricesfor all sectors in the food production industry will be Europe wide.

“We have for some months now been talking with our counterparts in Europe over the issue of farmgate price. Therefore, we are going to make the UK the leader in this and we would expect every farmer and countryside representative body to come behind this 100%.”

* For more details see FARMERS WEEKLY out on Fri (Jul 1).

by Farmers Weekly staff (About this Author)


---
Bickleygate holsteins

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29/6/2005, 23:18   
 
PEOVEREYE
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Re: Milk price


The letter came yesterday to tell us they got the supply profile wrong and they were cutting the bonus from 1.2ppl tp 0.3ppl this is after giving us over 12 months notice in which i and a good many others changed calving pattern , tipped milk away and generally put effort of time and money in to creating our own supply profile that would achieve bonus every day of the year which would of been worth 1.2ppl over 1.3 million litres . Then tonight our farmer rep rang up to say 0.25ppl coming off tomorrow . So in 2 days i lost a bloody fortune out of the cash flow with chance of another cut for August meanwhile everything diesel , fertilizer etc i as dear as i ever known . So i joined FFA tonight and accepted that i going to have to get out and protest as talking to them wont lift the price. emoticon
29/6/2005, 23:29   
 
friar
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Re: Milk price


From Ian Potter

Farmers close Co-ops processing plant (28 July)

"Around 25 dairy farmers with tractors and trailers blocked all entrances to Dairy Farmers of Britain's (DFOB) processing plant a Fole, Uttoxeter for 3 hours on Wednesday (27th) costing the co-op and its members an estimated £30,000.

Initially it was billed as a protest by co-op members but on analysis of those present, few were members of DFOB and many were suppliers of Arla. This has infuriated the co-ops members in view of the cost to them and the fact that the blockade had a negative impact.

This is the first time a co-op has been targeted by dairy farmers and DFOB members at Nantwich show understood why some co-op suppliers were angry at the recent price drop, and wanted to protest but felt closing down the factory was a step too far. One felt Arla Milk Partnership Members being involved was taking the mickey"

From FFA

"Although demand is outstripping supplies, still we are suffering price cuts. Therefore we are now contemplating a national milk dumping campaign, staggering it throughout the country on a daily basis, for maximum effect. This will take planning, co-operation and guts, but if we all stick together on this, we will get the result and price for our product that we deserve"

If COOP members dump milk, we will firstly obviously not be paid for the litres we dump & secondly, if it means the COOP can't make their contracted deliveries to the dairies they will get fined by the dairy as well.

Last edited by friar, 29/7/2005, 13:14
28/7/2005, 22:32   
 
Big Bird
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Re: Milk price


quote:

friar wrote:

If COOP members dump milk, we will firstly obviously not be paid for the litres we dump & secondly, if it means the COOP can't make their contracted deliveries to the dairies they will get fined as well.



Who's words are these?

I'm a Milklink member, and yep, I'm none too happy with the milk price, but actually setting out to disrupt what is effectively a business I have a share in? emoticon Can't see that improving my milk price.
28/7/2005, 22:40   
 
friar
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Re: Milk price


FFA Press Release

"1.8.05 - MILK MOVEMENTS TO BE CURTAILED AS MILK PRICE PROTEST HOTS UP. On Thursday 4 August 2005 all movement of milk transport vehicles will be stopped for 6 hours. Following this, if both processors and retailers do not address the current milk price crisis, it will be the intention to double the stoppage time the following week."

What percentage of dairy farmers will support this? What time of the day will it be done?
1/8/2005, 15:31   
 
MarkDay
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Re: Milk price


Sounds like FFA are raising the bar a fair bit this time.The success of the whole campaign could well hinge on the support they get on Thursday.Quite a risky move.

---
Bickleygate holsteins

"I have not failed 1000 times, I have discovered a 1000 ways that do not work"-Thomas Edison
1/8/2005, 20:41   
 
friar
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Re: Milk price


ANIMAL RIGHTS CAMPAIGNERS BACK FARMERS' DAIRY BLOCKADES
Animal Aid, the UK's largest animal rights organisation, is backing plans by Farmers for Action (FFA) to blockade the country's main milk processing sites.

In protest at what dairy farmers regard as unfair payment from the five main dairy processors, FFA, the group behind the petrol station protests of 2000 which caused chaos up and down the UK, is currently organising pickets outside the processing plants. The group is now threatening to step up its tactics by completely cutting off the nation's milk supply.

Animal Aid welcomes the FFA action, seeing a dairy drought as an opportunity for the nation to sample healthy, cruelty-free alternatives to cow's milk such as soya, rice and oat milks instead.

In order to yield the vast quantities of milk demanded by the modern industry, dairy cows are subjected to a constant cycle of pregnancies. Male calves, the unwanted 'by-products' of dairy farming, are taken from their mothers at just a few days old and destroyed, so that the milk meant for them can be bottled for human consumption. 'Prime' female calves are sent off to join the production line where they will be milked to the point of exhaustion and killed at around three years of age. Lameness is endemic on dairy farms and mastitis, a painful infection of the udders, runs rife. Mixed into that bottle of 'white stuff' is likely to be a ****tail of pus and blood cells from infected udders and antibiotics used to keep the cows 'healthy'.

It is not only animals who suffer: dairy products are now known to be a major allergen and can cause a range of symptoms such as stomach cramps, migraine and excessive mucous production, as well as contributing to much more serious diseases including kidney stones, childhood diabetes and breast cancer. Millions of people around the world recognise they are 'lactose intolerant' and avoid all dairy products for health reasons.

Said Animal Aid Director, Andrew Tyler:

"This time we're rooting for the farmers. We would be delighted if the blockade goes ahead. Cutting off the supply of a product that causes pain to both humans and animals can only be a good thing."

.........................

Notes to Editors

For more information contact Andrew Tyler or Claudia Tarry on 01732 364546.

We have an ISDN line for broadcast-quality interviews.

For background information on the dairy industry see the suffering of farmed cattle and our milk e-leaflet
2/8/2005, 10:43   
 
jonnykelso
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Re: Milk price


Losers! I think theyve got too much time on their hands. How many of them actually have been to a farm before? Its not in our best interests to mistreat cows-happier cows = better performance!Id love to show some of those guys around our farm (mitent b tidy but theyl see wat realy goes on & wat the animals mean to us!!!)
2/8/2005, 19:08
 
PEOVEREYE
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Re: Milk price


Anybody been involved or know how the protests have gone today ? the obvious websites seem void of information .
My milk has been picked up but if there is a knock on effect that some farmers dont get there milk picked up who stands the cost , could get tricky.
Summer, with school holidays and harvest to me is not going to help FFA get massive support and i think they need it . I could of tried harder to find out i suppose but none of my usual contacts knew what to do or where to go today i was throwing them dam wet tyres around anyway , again.
4/8/2005, 18:44   
 
FiringOnAllFour
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Re: Milk price


The last two milk auctions of United Dairy farmers were 19.39p and 18.76p respectively.

This represents a drop of about 2p below the same months last year.

If the trend continues into the spring we are looking at a farmgate price of around 13.5p, provided our buyer doesn't continue to subsidise the spring price from the winter price.

I don't know of many that will stick around for much of that?


6/12/2005, 14:22   
 
MarkDay
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Re: Milk price


Arla are dropping the price by .9 of a penny for Feb/March.
I'm getting tired of being treated like dirt.

---
Bickleygate holsteins

"I have not failed 1000 times, I have discovered a 1000 ways that do not work"-Thomas Edison
31/1/2006, 14:11   
 
errolston
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They complainabout rising input costs due to the price of oil etc, but for christ sake we have the same cost increases! I agree it ridiculous. The problem is that we are the small guy in the food chain and we just get shafted as and when these companies please.

On a slightly related topic we heard that David Handley did not put his own milk down the drain before Christmas when he tried to co-ordinate the 3 days of non-supply. If that is the case this guy should remove himself from the negotiating table as I for one think that if the story is true then he is an arsehole and he cannot possibly have any credibility.

Last edited by errolston, 31/1/2006, 15:41


---
Errolston_Holsteins updated 27th October 2007.
31/1/2006, 14:54   
 
friar
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Re: …


I don't know where mr Handley is sending his milk now, as he has left First Milk.

I think being the self appointed chairman of FFA pays rather better than producing milk!!!!
31/1/2006, 15:42   
 
FiringOnAllFour
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Re: Milk price


Mark,

What will your base milk price be after the .9 deduction, and what constitutes base milk?



31/1/2006, 17:06   
 
PEOVEREYE
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Wisemans confirmed they holding there price for february which i think will put 1.4 ppl between them and arla so only a matter of time before we get screwed also.
Our base for 4% and 3.3% with bonuses and 3000litres plus a day collection is 19.93 ppl
31/1/2006, 23:41   
 
MarkDay
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Re: …


December milk price:
Base 16.9
fat 0.825
protein 0 (capped at 3%)
scc .6
Bactoscan .8
Volume bonus 0.750
Sub Total 19.875
MPL admin levy -0.025
AFMP admin levy -0.025
MPL capital levy -.5
MDC levy -0.06

Total 19.265

The .5 MPL is for compulsory purchase of Arla shares !


Based on 4400L/day 4.25 F, Scs 125, BS 20



Last edited by MarkDay, 1/2/2006, 14:57


---
Bickleygate holsteins

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1/2/2006, 14:51   
 
Huffy
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Re: Milk price


  Heard last night that Arla were going to drop the price .8 then .3 then in april put it back up .6? Does that make any sense to any of you out there??
2/2/2006, 22:44   
 
FiringOnAllFour
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Re: Milk price


To discourage their suppliers from flooding them with extra litres in Feb/Mar, considering a no levy situation?



3/2/2006, 10:49   
 
Daisysdad
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Re: Milk price


But aren't we supposed to be short of milk.
Just a thought but how much (or little) would they pay if there was a glut
4/2/2006, 9:32   
 


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