Dairy Farmers are not 'milking it'

antrobus

Thrugelmir wrote: »

Milk is used in many other products.

Yes, I know that.

But the NFU were calling on the government to "ensure that rules are put in place regarding labelling so that it is clear and obvious which products are imported and which are British". But it is already pretty "clear and obvious" where milk comes from, and that's half the market.

kabayiri

Out,_Vile_Jelly wrote: »

I'm worried that as more farmers go out of business, production will only become commercially viable at "mega dairies" with all the environmental and welfare problems they pose.

I only buy organic and I drink a lot of milk (by the glass, every day) so I'm doing my bit.

Do we really believe the small suppliers can afford robotic milking machines at £120K a pop ?

There may always be room for local niche suppliers but the trend to larger farms is likely to continue.

Generali

chewmylegoff wrote: »

Why should consumers take action to force supermarkets to pay more than the market price for milk? Should we also boycott supermarkets to force them to buy other products for more than their market price and pass those cost increases on to us? Petrol? Water? Oranges? Chocolate? Should we go further and petition other businesses to pay their supplies more?

If not then why must milk specifically be protected from competition?

As michaels implies there isn't really a market for fresh milk in the UK, there is what amounts to a monopsony (like a monopoly but on the buyer's side rather then the seller's).

I have no particular beef (geddit?) with dairy farmers but they don't really operate in an open and free market.

What to do? No idea. I read a piece once about the main supplier of potatoes to Maccas in the US. They had each other in a headlock. McDonalds needed the particular potatoes in their billions in order to make their fries and they really had no alternative. Also, of course, the farmer had no other customer of size for his potatoes so they were locked into a symbiotic relationship where each needed the other.

I have had friends work for supermarkets as buyers and also have friends that are farmers and both are chippy f$%^ers. Perhaps they should work together a bit more.

antrobus

Generali wrote: »

As michaels implies there isn't really a market for fresh milk in the UK, there is what amounts to a monopsony (like a monopoly but on the buyer's side rather then the seller's).....

I don't believe you can say that the a market for fresh milk in the UK is a monopsony because there is not a single buyer, there are multiple buyers. It would be more accurate to call it an oligopsony. (And yes, that is a real word.:))

But the characteristic of this oligopsony is that the buyers are currently paying the suppliers more than the market price for their product. So I'm not sure why that is a problem for the suppliers.

remorseless

Out,_Vile_Jelly wrote: »

I'm worried that as more farmers go out of business, production will only become commercially viable at "mega dairies" with all the environmental and welfare problems they pose.

I only buy organic and I drink a lot of milk (by the glass, every day) so I'm doing my bit.

really? do you have youngsters around the house?
I admit, I do not buy fresh milk at all, can't remember last time I did! And very little dairies too.

Where is that thread on child benefits? hmmm maybe if they make those more generous, folks may have more kids, they will buy more milk and ta-da, problem solved! :rotfl:

Out,_Vile_Jelly

remorseless wrote: »

really? do you have youngsters around the house?
I admit, I do not buy fresh milk at all, can't remember last time I did!

I have a glass of full cream milk with my dinner most evenings; and often with breakfast too. Normal to me as that's how I was brought up, but I am aware it's unusual. I get through a lot of butter too as I like baking.

Free range eggs are pretty much the default in most supermarkets now, presumably due to customer demand, so I think people are happy to pay more in some circumstances.

remorseless

Out,_Vile_Jelly wrote: »

Free range eggs are pretty much the default in most supermarkets now, presumably due to customer demand, so I think people are happy to pay more in some circumstances.

I remember when Australia was obsessed about buying 'organic water'


Free-range eggs are the other myth in duping consumers believing hens sit down with a cuppa while laying eggs...

antrobus

remorseless wrote: »

I remember when Australia was obsessed about buying 'organic water'....

Organic water in Australia? You must be making that up!

Oh, apparently not. It seems to have been a thing until the Australian Competition and Consumer Commission put a stop to it. (Good on them.) But then I suppose we can buy iceberg water and water infused with volcanicity and similar gibberish.

remorseless wrote: »

...Free-range eggs are the other myth in duping consumers believing hens sit down with a cuppa while laying eggs...

A farmer once explained to me the difference between the various methods of egg production.

Ordinary eggs - we put the chickens in a cage in a barn.
Barn eggs - we leave the cage door open
Free-range eggs - we leave the barn door open as well

remorseless

antrobus wrote: »

A farmer once explained to me the difference between the various methods of egg production.

Ordinary eggs - we put the chickens in a cage in a barn.
Barn eggs - we leave the cage door open
Free-range eggs - we leave the barn door open as well

You're absolutely correct. I recall in Oz the to be 'free-range', the barn door had to be kept open for like 20 min a day.

In the UK, it's not too far from it: "In the UK free range eggs can mean the hens are given a nest area, some space to perch and maybe an opportunity to see some sunlight."

Because of demand of 'free-range', often they cram even more hens in the the barn to meet supply.

I buy regular eggs. Unless you go to a farmer, not much point.

Now, if they could only replicate the free-range-hysteria with milk...

wotsthat

Some of the input prices have collapsed to and the farmers don't seem to be worried about 'those' suppliers. Soya is down by about a half in the last three years, sugar's at a 10 year low, price of oil way down, wheat down, rice down etc. Every single dairy ration specification costs less this August compared to last August.

The farmers have got us lot sussed. It's not unreasonable to expect input prices to be reflected in product prices. The farmers are very keen to focus on the product price but their margins won't have been eroded by anything near as much.

This has been going on for years and we're meant to believe farmers continue to produce milk year after year as some sort of charitable venture and because they're so keen to be guardians of the countryside.