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errolston
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Registered: 07-2003
Posts: 1069
Karma: 11 (+12/-1)

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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.
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10/6/2005, 19:44
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Big Bird
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Registered: 06-2003
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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.
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10/6/2005, 21:35
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friar
VG87
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Registered: 01-2004
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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.
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10/6/2005, 21:57
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FiringOnAllFour
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Registered: 01-2004
Location: Northern Ireland
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Karma: 41 (+41/-0)

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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.
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24/6/2005, 16:00
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Will Richardson
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Registered: 06-2003
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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!!!
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24/6/2005, 17:25
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FiringOnAllFour
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Location: Northern Ireland
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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.
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25/6/2005, 10:36
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Will Richardson
Cowtalk Staff
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Registered: 06-2003
Location: Close to a pub
Posts: 1350
Karma: 14 (+14/-0)
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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 !!!
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26/6/2005, 19:44
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