Discussion
Is there any business where we expect/demand/are happy with the producer being forced to lose money on their product?
We all want to pay less for what we but but surely we cannot and should not expect someone to make a loss. Especially when its demanded by companies making millions in profits.
We all want to pay less for what we but but surely we cannot and should not expect someone to make a loss. Especially when its demanded by companies making millions in profits.
I've no idea how much a pint of milk costs.
I need it so I buy it.
If its £1 or £1.50 I'd still buy it so it's got nothing to do with "Giving you the consumer cheaper prices everyday". More like "Giving us the supermarket much more profit thanks very much and the supplier no alternative"
I need it so I buy it.
If its £1 or £1.50 I'd still buy it so it's got nothing to do with "Giving you the consumer cheaper prices everyday". More like "Giving us the supermarket much more profit thanks very much and the supplier no alternative"
On a simialr note. I have noticed that milk over here (germany) is under 50c for a liter. Is there a reason that its almost half what it cost in the uk besides the exchange rate.
I am wondering if the German government subsidise the price of milk as its a nessersary commodity to help the poor... Or Germany cows are just cheaper
I am wondering if the German government subsidise the price of milk as its a nessersary commodity to help the poor... Or Germany cows are just cheaper
Defcon5 said:
If you are losing money making something, then why would you continue to make it?
To make money on other things. Company I work for go cheap and lose money on small things to get the work for the big things. ie I can bring customer in to by milk so they also by my cheese which makes a large profit.
Doesn't work for every product/company but is plausible.
I find milk is cheaper at cash and carry's, so that tells me that the multiples are price gouging. They have the buying power to make demands of the suppliers, but are then making a nice profit.
Retail is in a mess, alot of lines make more profit for the shops than it does for the manufacturer.. Really sticks in my throat that.
Retail is in a mess, alot of lines make more profit for the shops than it does for the manufacturer.. Really sticks in my throat that.
doogz said:
mat13 said:
Defcon5 said:
If you are losing money making something, then why would you continue to make it?
What else is a 50 year old dairy farmer going to do? They're cows. You can't turn them off, they eat and they need milking. You've got to do that, once done you can sell small loss or pour the milk away, more loss.
Most farmers are emotionally attached / invested in their animals, which will represent generations of selective breeding, so selling them isn't easy.
But the rules mean we have to import milk thanks to CAP.
Just another reason to leave the EU pronto.
Most farmers are emotionally attached / invested in their animals, which will represent generations of selective breeding, so selling them isn't easy.
But the rules mean we have to import milk thanks to CAP.
Just another reason to leave the EU pronto.
Amateurish said:
Are they making a loss once subsidies are taken into account?
Yes.The average subsidy is about £32,000
Defcon5 said:
If you are losing money making something, then why would you continue to make it?
What other option do you have? Cows will continue to produce milk regardless as there isn't a tap you can switch off... 
What else are you supposed to do with 500 diary cows?
It's a joke tbh. The average cost to the farmer for producing a litre of milk is about 29p. Every single litre is sold at a loss.
doogz said:
The farmer down the road has recently given up on milk cows, is keeping some for beef, and has just bought a load of sheep. Sheep are a feckin nuisance though, stupid animals.
+1My local dairy farmer recently gave up on milk and got into free range chickens instead. And apparently got a £60k grant to do it.
Farmers need to be flexible and diversify. If their business can only run at a loss, then they need to change the way they do business.
Amateurish said:
doogz said:
The farmer down the road has recently given up on milk cows, is keeping some for beef, and has just bought a load of sheep. Sheep are a feckin nuisance though, stupid animals.
+1My local dairy farmer recently gave up on milk and got into free range chickens instead. And apparently got a £60k grant to do it.
Farmers need to be flexible and diversify. If their business can only run at a loss, then they need to change the way they do business.
It seems that farm subsidies aren't helping the farmers at all but just the supermarkets. We pay a lower price at the till for "cheap" products but we all pay for it through tax. They're the largest burden on the EU budget in times of "austerity".
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