Anyone want some wheat?
Anyone want some wheat?

Poll: Anyone want some wheat?

Total Members Polled: 70

Farming is my profession: 14%
We suffer the same problems in my industry: 24%
This never happens in my idustry: 61%
Author
Discussion

Silent1

Original Poster:

19,762 posts

264 months

Monday 17th August 2009
quotequote all
We've currently got several thousand tons of wheat that's cost £130/ton to produce (with all subsidies taken into account) and were currently being paid ~£70-80/ton.

So does anyone want some at 13p a kilo to make flour with?

And y other question is this, are there any other industries that suffer from the price being lower than the cost to produce for long periods of time?

So does anyone

The Moose

23,675 posts

238 months

Monday 17th August 2009
quotequote all
That's pretty st.

Is it because the cost of production has gone up, or your clients are paying less??

How long has it been like this? And how long can you last until you think fk it - why bother?

When you say it's been like that for sustained periods of time - how long is this?

How much land do you have producing wheat and how many tons per harvest does this produce??

I really find it amazing you can still work like that - keep up the good work.

Cheers

The Moose

eltax91

10,756 posts

235 months

Monday 17th August 2009
quotequote all
I know i'm in a totally different industry (IT prof services), but our management work on roughly a 4x cost to charge ratio. So, they charge me out at £1200 a day, and pay (roughly) £300 a day in staff costs and expenses.

Obviously they have other running costs, but they are taken care of by the actual product profits, Prof services is a seperate cost center with P/L etc

Fittster

20,120 posts

242 months

Monday 17th August 2009
quotequote all
So supply is greater than demand. Seems like a problem the market can solve.

Xenocide

4,286 posts

237 months

Monday 17th August 2009
quotequote all
Fittster said:
So supply is greater than demand. Seems like a problem the market can solve.
I was always of the impression that when this happens, next year all the farmers stop producing and live off the EU grants, thus boosting the value of the produce. Is this not the case?

(Very simplified, obviously)

Plotloss

67,280 posts

299 months

Monday 17th August 2009
quotequote all
Subsidies have largely cocked British Agriculture.

Kermit power

29,622 posts

242 months

Monday 17th August 2009
quotequote all
Is it the sort of thing you might be able to bag up and sell through local pet shops as animal feed or something?

plasticpig

12,932 posts

254 months

Monday 17th August 2009
quotequote all
Is it actually dry enough to make flour with? or do you expect me to dry it? Have you ever tried hand grinding wheat to make flour with. It takes a long time and it's very coarse compared to the stuff you buy of the supermaket shelf.

shirt

25,392 posts

230 months

Monday 17th August 2009
quotequote all
is the shortfall covered by subsidies at all?


i work in manufacturing in an industry where prices have taken an absolute beating over the last year - down 50% in most markets and sales also down 40-60% across the board. we gauge a product on contribution per hour [selling price - labour, materials & overhead, but not fixed costs].

at the moment, we aren't covering costs. the figures involved are staggering, hence '000s of job losses.

Westy Pre-Lit

5,088 posts

232 months

Monday 17th August 2009
quotequote all
Am a bit off a knumbskull when it comes to things like this, but how has it been allowed to got to a point that it's more expensive to produce than what the product is sold for ?

Justayellowbadge

37,057 posts

271 months

Monday 17th August 2009
quotequote all
Westy Pre-Lit said:
Am a bit off a knumbskull when it comes to things like this, but how has it been allowed to got to a point that it's more expensive to produce than what the product is sold for ?
www.tesco.com

JMGS4

8,926 posts

299 months

Monday 17th August 2009
quotequote all
Plotloss said:
Subsidies have largely cocked British Agriculture.
Not just GB, the whole of EU agriculture. The local german farmers are getting around 20cts a litre for milk (paid 3 months after they delivered it) from the large dairies, and it costs them around 42cts to produce... I can see a lot of farmers going down the drain here.....

plasticpig

12,932 posts

254 months

Monday 17th August 2009
quotequote all
Justayellowbadge said:
Westy Pre-Lit said:
Am a bit off a knumbskull when it comes to things like this, but how has it been allowed to got to a point that it's more expensive to produce than what the product is sold for ?
www.tesco.com
Farmers don't have to sell to Tesco or anyone else for that matter. They could group together and form their own cartels and tell Tesco's, ASDA etc to fk off and just burn the crops instead. The problem is farmers in the UK just sit there and take it. They should learn a thing or two from their French brethren.

littlegreenfairy

10,134 posts

250 months

Monday 17th August 2009
quotequote all
This is a bit left of centre, but what about contacting a working mill somewhere (a traditional one) and see if they want to buy some for either their demonstrations or to make flour of a bespoke arty nature that will sell for a shocking amount of money?

Pacakge it up in some poncey packaging (ground) perhaps?

Plotloss

67,280 posts

299 months

Monday 17th August 2009
quotequote all
plasticpig said:
Justayellowbadge said:
Westy Pre-Lit said:
Am a bit off a knumbskull when it comes to things like this, but how has it been allowed to got to a point that it's more expensive to produce than what the product is sold for ?
www.tesco.com
Farmers don't have to sell to Tesco or anyone else for that matter. They could group together and form their own cartels and tell Tesco's, ASDA etc to fk off and just burn the crops instead. The problem is farmers in the UK just sit there and take it. They should learn a thing or two from their French brethren.
Farmers have a choice to specialise or compete.

If they choose to compete then that means they have no choice but to supply the supermarkets.

If they formed a cartel which price fixed, they'd fall foul of EU anti-competition laws.

Make no mistake that supermarkets are now too big and too powerful by any reasonable measure. Tesco especially.

Kermit power

29,622 posts

242 months

Monday 17th August 2009
quotequote all
JMGS4 said:
Plotloss said:
Subsidies have largely cocked British Agriculture.
Not just GB, the whole of EU agriculture. The local german farmers are getting around 20cts a litre for milk (paid 3 months after they delivered it) from the large dairies, and it costs them around 42cts to produce... I can see a lot of farmers going down the drain here.....
Why do they keep doing it? If it costs twice as much to produce as they can sell it for, wouldn't they just be better off stopping?

Westy Pre-Lit

5,088 posts

232 months

Monday 17th August 2009
quotequote all
So why the Subsidies.

In any other industry it costs 'a' to produce and 'b' to sell, 'a' being lower than 'b'. You can't sell a product for less than you produce it for. Thats basic ecomonics.

If no subsidies where given everybody would have to tell Mr Tesco to fk right off and pay the going rate. Nowbody can survive selling less than the cost price, it doesn't make sense.

Or am I missing something here ? the only thing I can see is imported food buggering up the system.


Edited by Westy Pre-Lit on Monday 17th August 14:31

Silent1

Original Poster:

19,762 posts

264 months

Monday 17th August 2009
quotequote all
The Moose said:
That's pretty st.

Is it because the cost of production has gone up, or your clients are paying less??
Both really nitrogen went through the roof and there's a huge stockpile from previous years

How long has it been like this? And how long can you last until you think fk it - why bother?
8 out of the past 10 years, farming is my passion I don't think I'll ever pack it in unless I go bankrupt
When you say it's been like that for sustained periods of time - how long is this?
years, it's the same for almost every farmer

How much land do you have producing wheat and how many tons per harvest does this produce??
Currently 5000 acres at 5.5 tons to the acre so 27,500 tons

I really find it amazing you can still work like that - keep up the good work.
thanks:-)
Cheers

The Moose
My answers in bold, I'm on my iPhone so I've not been as detailed as I like, it's bloody hard combining and writing an essay hehe

LittleSwill

268 posts

241 months

Monday 17th August 2009
quotequote all
Put it on ebay.

wiffmaster

2,622 posts

227 months

Monday 17th August 2009
quotequote all
I really feel for you. We just harvested 50 acres or so of Spring Barley. After all costs were taken into account, we made the staggering profit of.....£278. So just over £5 an acre. Seriously, why bother? We're lucky in the sense that farming isn't our main source of income - if it were, I just don't see how we could possibly survive.

Good luck!