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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.

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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.

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