Q: How does the board of Arla work with people from different countries involved?

Ake Hantoft: The board works like that of any other co-op – with the farmer shareholders’ interest in mind. We don’t discuss specific prices at board meetings. We spend 30% to 40% of our time focusing on the long-term strategies of the co-op that will help us to deliver a better milk price and growth. Each country has their own representative board which elects someone onto the main board.

Q: Will access to capital curtail many expansion plans?

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Minister Coveney: I have met with the CEOs of all three banks and they assure me they are eager to do business with farmers. They have their agri-sales teams in place and are seeking business. Our TAMS scheme was undersubscribed last year as the weather reduced appetite for on-farm development. More competition in the banking sector would only be positive but farmers must be careful about the amount of money they borrow and that they don’t exceed their repayment capacity.

Q: Is there a point hedging milk price when we can’t lock in input prices and are exposed to volatility from that end?

Bart Van Belleghem: This is true and could actually expose you to more risk. In the US where hedging is popular, feed is one of the main costs on farms. This can be locked in, guaranteeing milk producers a certain margin.

Q: Do we have adequate testing facilities in this country to keep on top of potential food safety scares?

Patrick Wall: Probably not. The Department Lab in Backwesten is an excellent facility but we have a lot of fragmented labs around the country and would be served better by having a centralised lab. It would mean improved traceability and allow us deal with any food safety scares in house as opposed to have to export samples to get them tested.

Risk management will make or break expansion plans - read more from the ICOS conference here.

Farmers are in the health business - read more from the ICOS conference here.