Discussion
Is it just me but I don't buy the farmers' main argument as to why prices have slumpt. They claim it's the supermarkets price war on milk causing (or significantly adding to the problem).
I don't recall seeing a single supermarket piece of advertising in the last five years championing the cheapness of their milk?
Also I just bought a litre of semi skimmed from Tesco for £1. The farmers rejoin they're getting 20p for that. Doesn't smack of the lost leader type discounting the farmers go on about.
Isn't the truth that their business model is shocking as are their union representation and it needs a massive overhaul?
I don't recall seeing a single supermarket piece of advertising in the last five years championing the cheapness of their milk?
Also I just bought a litre of semi skimmed from Tesco for £1. The farmers rejoin they're getting 20p for that. Doesn't smack of the lost leader type discounting the farmers go on about.
Isn't the truth that their business model is shocking as are their union representation and it needs a massive overhaul?
The reason I say their business model is shocking is because the way that they sell it is absurd. Basically they put it into a tanker, that their cooperative/ dairy sends to the farm, who then sends them a cheque for the price 'they could get for it'. Some are contracted directly to supermarkets but is not the norm.
In addition the NFU seem totally insfectual in providing farmers with good advice/ representation etc.
It seems that forward selling, hedging of positions etc doesn't exist for most. This is my knowledge of 10/12 dairy farmers I know.
In addition the NFU seem totally insfectual in providing farmers with good advice/ representation etc.
It seems that forward selling, hedging of positions etc doesn't exist for most. This is my knowledge of 10/12 dairy farmers I know.
Butter and cheese are expensive when compared to the price of milk - perhaps the farmers should diversify and make more butter and cheese.
I think milk is too cheap, I usually get through a 4 pint container during the week at a cost of £1. It seems to last a lot longer nowadays before going off, there's often 7 or 8 days use before the use by date.
I think milk is too cheap, I usually get through a 4 pint container during the week at a cost of £1. It seems to last a lot longer nowadays before going off, there's often 7 or 8 days use before the use by date.
One of the problems farmers face is that they need to sell their milk every day or literally throw it away.
Farms typically milk the cows twice a day ( leaving aside automatic milk on demand farms) and don't have the ability to store milk for much more then 24hrs if that. The diaries don't have much spare capacity either.
Cows have to be milked regularly or the stop producing milk. A conveyor belt that can be turned off but not on again.
As milk needs to be sold fresh the buyers can basically hold farmers to ransom. Sell the milk to us at a loss of 1p per pint or don't sell it at all at a loss of 19p per pint.
All this means the farmers have a very weak hand when it comes to prices.
Farms typically milk the cows twice a day ( leaving aside automatic milk on demand farms) and don't have the ability to store milk for much more then 24hrs if that. The diaries don't have much spare capacity either.
Cows have to be milked regularly or the stop producing milk. A conveyor belt that can be turned off but not on again.
As milk needs to be sold fresh the buyers can basically hold farmers to ransom. Sell the milk to us at a loss of 1p per pint or don't sell it at all at a loss of 19p per pint.
All this means the farmers have a very weak hand when it comes to prices.
bsdnazz said:
One of the problems farmers face is that they need to sell their milk every day or literally throw it away.
Farms typically milk the cows twice a day ( leaving aside automatic milk on demand farms) and don't have the ability to store milk for much more then 24hrs if that. The diaries don't have much spare capacity either.
Cows have to be milked regularly or the stop producing milk. A conveyor belt that can be turned off but not on again.
As milk needs to be sold fresh the buyers can basically hold farmers to ransom. Sell the milk to us at a loss of 1p per pint or don't sell it at all at a loss of 19p per pint.
All this means the farmers have a very weak hand when it comes to prices.
I totally agree but this has been the case since the dawn of time. Milk can now be powdered and stored or turned into product - milk, cheese etc and stored. Farms typically milk the cows twice a day ( leaving aside automatic milk on demand farms) and don't have the ability to store milk for much more then 24hrs if that. The diaries don't have much spare capacity either.
Cows have to be milked regularly or the stop producing milk. A conveyor belt that can be turned off but not on again.
As milk needs to be sold fresh the buyers can basically hold farmers to ransom. Sell the milk to us at a loss of 1p per pint or don't sell it at all at a loss of 19p per pint.
All this means the farmers have a very weak hand when it comes to prices.
Their current modus operandi just seems incredibly commercially un ambitious, hence they find themselves in a volatile environment as a price taker, not maker.
Hedgesnottwigs said:
bsdnazz said:
One of the problems farmers face is that they need to sell their milk every day or literally throw it away.
Farms typically milk the cows twice a day ( leaving aside automatic milk on demand farms) and don't have the ability to store milk for much more then 24hrs if that. The diaries don't have much spare capacity either.
Cows have to be milked regularly or the stop producing milk. A conveyor belt that can be turned off but not on again.
As milk needs to be sold fresh the buyers can basically hold farmers to ransom. Sell the milk to us at a loss of 1p per pint or don't sell it at all at a loss of 19p per pint.
All this means the farmers have a very weak hand when it comes to prices.
I totally agree but this has been the case since the dawn of time. Milk can now be powdered and stored or turned into product - milk, cheese etc and stored. Farms typically milk the cows twice a day ( leaving aside automatic milk on demand farms) and don't have the ability to store milk for much more then 24hrs if that. The diaries don't have much spare capacity either.
Cows have to be milked regularly or the stop producing milk. A conveyor belt that can be turned off but not on again.
As milk needs to be sold fresh the buyers can basically hold farmers to ransom. Sell the milk to us at a loss of 1p per pint or don't sell it at all at a loss of 19p per pint.
All this means the farmers have a very weak hand when it comes to prices.
Their current modus operandi just seems incredibly commercially un ambitious, hence they find themselves in a volatile environment as a price taker, not maker.
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