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Dairy Farmers. Why don't they just charge more for their milk? |
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#1 |
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Forum Member
Join Date: Nov 2005
Posts: 1,650
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Dairy Farmers. Why don't they just charge more for their milk?
Can anyone explain what i'm missing here? On the BBC News today... http://news.bbc.co.uk/1/hi/magazine/8103119.stm Quote:
61p - cost to farmer to produce four pints I mean dairy farming is a business isn't it? Why don't the usual rules of business apply?58p - paid to farmer by processor 3p - farmer's loss Sir Alan wouldn't be impressed AT ALL. |
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#2 |
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Join Date: Jun 2009
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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 |
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#3 |
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Join Date: Mar 2006
Location: South East London
Posts: 1,050
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Warning, Peta troll!
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#4 |
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Join Date: Apr 2007
Location: Turnford, ENGLAND
Posts: 2,732
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Quote:
Warning, Peta troll!
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#5 |
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Inactive Member
Join Date: Jun 2009
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#6 |
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Join Date: Apr 2007
Location: Turnford, ENGLAND
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Quote:
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. |
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#7 |
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Inactive Member
Join Date: Jun 2009
Posts: 2,530
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Quote:
Ah right, that explains him/her. Just look at his/her posts on the "free-range" thread
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#8 |
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Join Date: Nov 2005
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Quote:
I believe the problem is the buying power excerted by the supermarkets, Tesco in particular. In other words, lack of competition.
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.
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#9 |
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Join Date: Nov 2006
Location: NW England
Posts: 6,792
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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
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#10 |
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Location: NW England
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Quote:
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.
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#11 |
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Join Date: Nov 2005
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I know.
![]() I saw someone's forum sig once, can't remember where... "Why don't you get Fairtrade milk?" |
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#12 |
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Join Date: Oct 2005
Location: Eindhoven/Deventer/Derby
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Quote:
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. ![]() 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. |
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#13 |
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Join Date: Mar 2008
Location: Wiltshire
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Quote:
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 ![]()
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#14 |
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Quote:
It must vary between areas, it's about £1.70 for 4 pints around here (Tesco)
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#15 |
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Join Date: Apr 2007
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Quote:
It must vary between areas, it's about £1.70 for 4 pints around here (Tesco)
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#16 |
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Join Date: Mar 2008
Location: Wiltshire
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Weird, you're probably surrounded by Cows as well..
![]() 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. |
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#17 |
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Join Date: Nov 2005
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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. |
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#18 |
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Join Date: Mar 2008
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Quote:
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.
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#19 |
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Join Date: Jul 2008
Location: Manchester
Posts: 369
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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. |
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#20 |
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Quote:
I just think farmers need to grow a pair.
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#21 |
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Join Date: Jul 2008
Location: The Little Village
Posts: 3,984
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Quote:
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 ![]() |
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#22 |
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Join Date: Jan 2006
Posts: 1,211
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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.
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#23 |
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Join Date: Jul 2008
Location: Manchester
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Quote:
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.
I do think there could be more regulation about this, however. If only for the welfare of the animals. |
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#24 |
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Join Date: Oct 2003
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Quote:
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. 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. |
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#25 |
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Join Date: Aug 2006
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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? |
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