Price increases

redlady_1

I order my shopping online and whilst I generally notice price increases, today I spotted that butter has gone up to £1.63!:eek::eek::eek: When did that price jump up so much?? I know they will blame Brexit however, we are not even out of the EU yet which makes me wonder when the real increases hit (if they do) how much will things cost then?!

Have I taken my eye off the pulse?

Edited to add: That was the cheapest online. Some were as much as £2 or £2.15

juliettet

Where was that Redlady? I paid £1.40 in M&S on Saturday?

redlady_1

Ocado. ;Its easy to have it delivered than for me to drive 30 mins each way to do the shopping.

I was just shocked as I have obviously missed some big increases. Not so long ago it was £1.23 and in Aldi (if I popped in after work) it was less than £1.

It just goes to show what happens if you take your eye off the ball for a few months

worried_jim

I believe UK dairy farmers are selling more in Europe as the £ is weak and they now get more profit, therefore pushing up UK prices as ingredients are short in supply. But we have got control of our borders back so well done kippers.

Gers

Don't know if this is the reason:

http://www.bbc.co.uk/news/business-40506573

redlady_1

Ah, so its more product based rather than across the board rises

spadoosh

worried_jim wrote: »

I believe UK dairy farmers are selling more in Europe as the £ is weak and they now get more profit, therefore pushing up UK prices as ingredients are short in supply. But we have got control of our borders back so well done kippers.

Nothing to do with EU scrapping quotas, coupled with russias eu embargo and unprecedented low oil prices leading to the lowest price in history for milk produce causing thousands of producers out of business for the eu to then try and compensate by paying farmers to not produce milk?

Youd think if uk exporters where selling cheap to the EU they wouldnt have their own shortages?


The actual answer is a lot of dairy farms run at a loss and are heavily subsidised. State intervention (from the EU) made the market unnatural and as such things got volatile add a few other factors like politics (american shale gas and russian embargos) and you inevitably end up with price rises.

Your congratulations is not misguided.

spadoosh

worried_jim wrote: »

I believe UK dairy farmers are selling more in Europe as the £ is weak and they now get more profit, therefore pushing up UK prices as ingredients are short in supply. But we have got control of our borders back so well done kippers.

Butter prices across europe started out this year at $4600 per tonne. In the middle of spetember it was $8100 per tonne.

Why is the whole of europe paying more when theyre buying our cheap milk?

Slinky

We started buying President French butter about 3 years ago when we went low carb. That's gone from £1.10 to £2 in that time. Couldn't quite believe it a couple of weeks ago when we bought it in Waitrose and thought we were paying OTT but it's the same in Tesco now.

French farmers are prefering to export butter to the UK as they get more for it than at home where the price is controlled (read an article on the BBC about it a week-10 days ago).

worried_jim

spadoosh wrote: »

Nothing to do with EU scrapping quotas, coupled with russias eu embargo and unprecedented low oil prices leading to the lowest price in history for milk produce causing thousands of producers out of business for the eu to then try and compensate by paying farmers to not produce milk?

Youd think if uk exporters where selling cheap to the EU they wouldnt have their own shortages?


The actual answer is a lot of dairy farms run at a loss and are heavily subsidised. State intervention (from the EU) made the market unnatural and as such things got volatile add a few other factors like politics (american shale gas and russian embargos) and you inevitably end up with price rises.

Your congratulations is not misguided.

Well that’s why they are selling to the continent because they can get more money for their product. Market economics.

spadoosh

worried_jim wrote: »

Well that’s why they are selling to the continent because they can get more money for their product. Market economics.

Not quite.

Market economics is based on supply and demand. Looks something like this.



When you set minimum wages, minimum and maximum selling prices, minimum and maximum standards, quotas and subsidise sectors the one thing thats definitely not happening is market economics.

Looks more like this.




ETA the Eu are currently trying to work out which equilibrium point they where aiming for and which one there currently a long way from getting to.