Discussion
_rubinho_ said:
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".
While I don't think it's the responsibility of the government to be involved in the supply of milk, I do think farmers deserve better treatment from the supermarkets and consumers they supply.
If it costs a farmer around 29p to produce a litre of milk which Tescos sell for 49p, then the vast majority of profit must have been taken by Tescos - there is no way milk costs 20p/litre to process and transport.
This is common in all areas of food production, the supermarkets are the only place farmers can sell the quantities of produce they can grow, but they then become reliant on the goodwill of the supermarkets, who have no interest in looking after their suppliers.
In an ideal world we would all shop locally, from independent retailers in our local high street, but of course we don't - we have handed the control of the country's food supply to the big supermarkets who don't answer to us or the government any longer. We've created a monster which has destroyed our farming industry and when import prices rise steeply, we'll finally come to realise what a bad idea that was.
Mark Benson said:
If it costs a farmer around 29p to produce a litre of milk which Tescos sell for 49p, then the vast majority of profit must have been taken by Tescos - there is no way milk costs 20p/litre to process and transport.
Nail. Head.
This is the issue. The supermarkets are keeping any profit.
Mark Benson said:
If it costs a farmer around 29p to produce a litre of milk which Tescos sell for 49p, then the vast majority of profit must have been taken by Tescos - there is no way milk costs 20p/litre to process and transport.
It's worse than that because they sell it at 49p a pint, not per litre. Per litre it would be about 84p.It is a conundrum.
IIRC the farmers had a co-operative/mutual company that bought their milk, processed it, and sold it on...but the company was sold, leaving the farmers to continue or negotiate with another processor. Those that sold it must have done so for a reason (perhaps somebody else with more info can chip in).
The supermarkets do not (cannot?) care - they just commodotise to fit their business model. They'll screw anything and anyone to make a return. Welcome to capitalism.
Although I do remember doorstep deliveries, I also remember receiving milk with one day shelf life, or a bottle of yellowy half yoghurt when I got home. The supermarkets have helped to change that.
Perhaps the dairy producers need a union to join and fight their corner...?
IIRC the farmers had a co-operative/mutual company that bought their milk, processed it, and sold it on...but the company was sold, leaving the farmers to continue or negotiate with another processor. Those that sold it must have done so for a reason (perhaps somebody else with more info can chip in).
The supermarkets do not (cannot?) care - they just commodotise to fit their business model. They'll screw anything and anyone to make a return. Welcome to capitalism.
Although I do remember doorstep deliveries, I also remember receiving milk with one day shelf life, or a bottle of yellowy half yoghurt when I got home. The supermarkets have helped to change that.
Perhaps the dairy producers need a union to join and fight their corner...?
king arthur said:
Mark Benson said:
If it costs a farmer around 29p to produce a litre of milk which Tescos sell for 49p, then the vast majority of profit must have been taken by Tescos - there is no way milk costs 20p/litre to process and transport.
It's worse than that because they sell it at 49p a pint, not per litre. Per litre it would be about 84p.It's strange that the supermarkets have loss-leaders like beer and cider, yet try and squeeze every penny out of things like milk and bread.
I'd be happy to pay a bit more for milk, but I'd perfer it if the supermarkets accepted that milk is key product, and it shouldn't be considered a high profit product.
I pay 65p for a pint at the farm shop.
I'd be happy to pay a bit more for milk, but I'd perfer it if the supermarkets accepted that milk is key product, and it shouldn't be considered a high profit product.
I pay 65p for a pint at the farm shop.
wormburner said:
So are the dairy farms thinning in number to reflect the lower desirability of being a dairy farmer?
The new equilibrium, once the oversupply of milk has gone, should see power return to the producers and a more fair competition between retailers for the milk, no?
I know of many dairy farmers who have thrown the towel in and sold up. These tend to be those with herds of 100-200 cows.The new equilibrium, once the oversupply of milk has gone, should see power return to the producers and a more fair competition between retailers for the milk, no?
Those running 500 cow herds are still going, and I believe that is the future i.e. fewer farmers but much bigger herds.
wormburner said:
Eat them?
Dairy cows don't produce great steaks, far too thin.... 
MX7 said:
It's strange that the supermarkets have loss-leaders like beer and cider, yet try and squeeze every penny out of things like milk and bread.
I'd be happy to pay a bit more for milk, but I'd perfer it if the supermarkets accepted that milk is key product, and it shouldn't be considered a high profit product.
I pay 65p for a pint at the farm shop.
They squeeze every penny out of everything. I'd be happy to pay a bit more for milk, but I'd perfer it if the supermarkets accepted that milk is key product, and it shouldn't be considered a high profit product.
I pay 65p for a pint at the farm shop.
High or low, the price they sell at isn't contradictory to the sensible policy to always buy as cheaply as possible.
Is there a good reason why the farmers aren't teaming-up, OPEC style and starting to dictate supply?
Anti-competition reasons?
If they refuse to sell to one of the big 4 for less than X, and mean it, then that supermarket has a major issue on their hands. Is importing milk a realistic option for a supermarket?
Anti-competition reasons?
If they refuse to sell to one of the big 4 for less than X, and mean it, then that supermarket has a major issue on their hands. Is importing milk a realistic option for a supermarket?
wormburner said:
So are the dairy farms thinning in number to reflect the lower desirability of being a dairy farmer?
The new equilibrium, once the oversupply of milk has gone, should see power return to the producers and a more fair competition between retailers for the milk, no?
There isn't an oversupply, UK imports milk, we are obliged too under EU rules. The market is still fixed.The new equilibrium, once the oversupply of milk has gone, should see power return to the producers and a more fair competition between retailers for the milk, no?
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