350 Arla farmers in for March repayment

As part of the deal for AFMP farmers to join Arla as full members all AFMP farmers were on the hook to pay 7.5ppl joining fee based on milk produced between 1st October 2012 and September 2013.

Due to ongoing expansion around 350 farmers overpaid and are due repayments of hundreds of thousands of pounds with at least one due towards £150,000 in March 2018.

A HSBC loan to fast track AFMP members into full membership of Arla was masterminded by Ovens and his former EDL board.  One of the terms was that for as long as there was an outstanding debt on part of the loan no repayments to farmers could be made as well as the request that Ovens presided over the loan during its duration.

According to comments made to one of the farmers due a refund by an EDL Director a loan has been arranged from Arla to facilitate the repayments. That has set hares running with some questioning whether this is permitted under the Co-op’s rules especially given the circumstances behind the loan.

By paying off an estimated £1 million to £2 million via a loan from Arla at least allows the 350 farmers to receive their overpayments in March of this year.  This will be the final piece in the EDL jigsaw after which it’s likely EDL will be disbanded.

Going forward new Arla recruits do not require a loan facility and can either pay an upfront lump sum joining fee, pay via their 13th payment or from their monthly milk cheque.

As the curtain comes down on 2017 farm gate milk prices, two or three announcements warrant a mention, two of which are positive, one of which has been described as stupid.