Can anyone explain what i'm missing here? On the BBC News today...

http://news.bbc.co.uk/1/hi/magazine/8103119.stm


I mean dairy farming is a business isn't it? Why don't the usual rules of business apply?

Sir Alan wouldn't be impressed AT ALL.

Whose milk?

Never mind the bloody farmers what about the cost to the environment of creating a totally unethical and unnecessary product.

http://www.milksucks.com/index2.asp

Warning, Peta troll!

Ah right, that explains him/her. Just look at his/her posts on the "free-range" thread

Good one.
:sleep:

I believe the problem is the buying power excerted by the supermarkets, Tesco in particular. In other words, lack of competition.

I do not agree with allot of what Peta does. So nope I am not Peta I just have a mind of my own. Of course I understand your need to box me.

Surely the dairy farmers can compete with each other without making their businesses unviable though, which is what they seem to be doing at the moment. It's not exactly a low-start-up cost industry.

I know price fixing is illegal, but what about margin fixing? Dairy farmers all agree to mark-up their milk by 20% over cost; and then get on with competing on cost rather than putting the entire industry at risk by competing themselves out of business.

61p - cost to farmer to produce four pints
58p - paid to farmer by processor
3p - farmer's loss

Price in Tesco/Asda for 4 pints - £1.53

And what happens when Tesco decide to import milk instead?

I know.

I saw someone's forum sig once, can't remember where...

"Why don't you get Fairtrade milk?"

The problem is the supermarkets, to big for their own boots and more often than not have the final say on the price per pint. Farmers have no choice but to sell to supermarkets, and of course other small markets such as farm shops, ect. While supermarkets have the power and will to look for the cheapest produce either it be in the Uk or abroad, it's all about price. Another way for farmers to make equalibruim would be for the government to introduce some sort of subside, but that would equate to higher taxes which in turn people don't want in a capitalist run society.

At the end of the day people want capitalism and therefore want cheaper goods, sorry to say but someone has to loose out. It's not just farmers losing out but all producers of goods, but farming does hit the uk significantly (watch blood, sweat and takeaways on BBC3?).

I don't mind paying higher taxes to sub wealth distrubtion, but sadly the uk is made up of the politically dumb.

It must vary between areas, it's about £1.70 for 4 pints around here (Tesco)

Weird, you're probably surrounded by Cows as well..

According to the Tesco website, a 4 pint carton of milk costs £1.53, unless you buy organic which is £1.73. It's probably a bit dearer in Tesco "Express" stores.

Yep, very business-minded cows who know how to drive a hard bargain, obviously
I've switched to the Robert Wiseman brand, it's 2 litres instead of 4 pints so you get a bit less, but costs £1.06, which is a better deal I think. Tesco branded milk is so expensive.

I just think farmers need to grow a pair.

I appreciate the point about Tesco et. al. importing milk if necessary but there's cost involved in that; and if the foreign dairy farmers are competing themselves out of business as well then UK farmers can at least up their price by however much it would cost Tesco to import minus 1p.

I only have an express near me, so that's probably why. I don't drive so I can only get to the larger (cheaper) stores once a week, I'm at the mercy of Tesco Express for my 'top-up' shopping.

I agree and you should see most dairy cows - how thin they are. Most of them are a bag of bones. It is Horrible.

Do the farmers get subsidies to make up the loss? I don't know much about farming subsidies.

Of Udders?

OK just over 3.5 pints and not 4 pints but a local shop to us sells 2 litres for 69p with other local shops 73p - 79p.

I don't really know much about this stuff but couldn't we just buy directly from the farmers? By cutting out the parasitical middle men we could save on dairy and the farmers could get a better deal.

Logistical difficulties - most people don't or wouldn't have convenient access to farm shops in comparison to regular shops.

I do think there could be more regulation about this, however. If only for the welfare of the animals.

I don't know about dairy farmers, but I do know that it's cheaper for Tesco to send a refridgerated lorry to Poland, pay for a lorry full of strawberries, drive back to the UK and sell those strawberries than it is for them to pay for a lorryful of strawberries grown and picked half a mile away from their nearest store and delivered by the farmer.

UK farmers are pretty much on a loser unless they're aiming for the premium end of the market. It's not just start up costs, it's insurance, crop/animal treatments and major wage costs.

Tesco destroyed the dairy farmers. They paid normal prices for the milk but sold it at a loss to themselves. They did this with many products. In the end they killed off most of their competition and all of a sudden the dairy farmers (and other suppliers) found that Tesco were by far their biggest customer.

Tesco then demanded ridiculously low prices. If a farmer said no then Tesco would go to the next supplier, who would be more than happy for more business because they would be getting ripped off by Tesco anyway! In theory all of the UK dairy farmers could come together and agree to set a minimum price and that none of them would supply Tesco for less. The result? Tesco will import their milk instead.

Who says that Tesco do not have a monopoly?