Why are farmers a "special" case?

[Smudge]

Huh? A cow den?

Shed with curtains

[Schlupp]

Huh? A cow den?

Yeh m8,You gotta have cow bait thou m8.

[AoWW]

Yeh m8,You gotta have cow bait thou m8.

Er, why the need to call everyone m8?

I'm hoping someone's hacked your account and is simply trying to make you look a twat.

If not, surely it's past your bedtime - or are you allowed to stay up late in the school holidays?

[Corky]

It's time for Schlupp to deactiv8.

[Schlupp]

Er, why the need to call everyone m8?

I'm hoping someone's hacked your account and is simply trying to make you look a twat.

If not, surely it's past your bedtime - or are you allowed to stay up late in the school holidays?

Everytime I put "m8" in my post it means I'm not being serious and I've been in one of those moods today.

[ADK]

If your unaware that farming in this country and all over europe is subsidised by british tax payers ,,where have you been? we pour billions into europe to prop up un economic farmers all over the continent..farmers get paid huge sums to "manage " the countryside.. I have no chip on my shoulder about farmers..I just don't see why they should be allowed to break the law ,blockade other people trying to earn a living...if inner city crowds were doing it ,they would be dealt with harshly...

I didn't know foreign farmers were coming over here to protest.

[Daggers]

I want a cow den and some cow bait.

[davieG]

All you'll get on here is a cow pat.

[THEFATBASTARD]

I didn't know foreign farmers were coming over here to protest.

not very clever, our farmers get the same subsidies as all farmers in europe do, under EU policy...get it?

http://en.wikipedia.org/wiki/Agricultural_subsidy

[I am Rod Hull]

Semi-skimmed milk drinkers can save money by using water instead of that tasteless pretend stuff they buy.

[Daggers]

All you'll get on here is a cow pat.

Paaaaaaaaaaaaaat!

[foxoffderby]

Like most have said the supermarkets have got suppliers and its not just farmers by the balls.

Supermarkets discount massively and in some cases expect the suppliers to take the hit.

Another example is Easter eggs. They will often do 3 for £5 etc proms were the small independent corner shops can't even buy at the rate supermarkets sell to the public, just to get footfall in their stores in the hope the customer will buy something else more profitable - a loss leader.

Its a disgrace how they operate and in another 10 or 20 years time will see the end of the corner shop.

[Captain...]

Like most have said the supermarkets have got suppliers and its not just farmers by the balls.

Supermarkets discount massively and in some cases expect the suppliers to take the hit.

Another example is Easter eggs. They will often do 3 for £5 etc proms were the small independent corner shops can't even buy at the rate supermarkets sell to the public, just to get footfall in their stores in the hope the customer will buy something else more profitable - a loss leader.

Its a disgrace how they operate and in another 10 or 20 years time will see the end of corner shop.

Their will be a brimful asha on my 45 when that happens.

[Parafox]

The farmers have a point and, yes it is unfair that they are paid less than the cost of production...

But hold on a mo... most seem to be blaming the supermarkets entirely for this but it is also the big users like yoghurt producers and so on. Not only this but aren't the supermarkets responding to consumer demand for the lowest prices on EVERYTHING which clearly includes milk. Price wars have happened regularly and it is the consumer that effectively drives down prices at point of supply. Agreed, supermarkets have loss-leaders but it varies over a range of products, mostly (currently) alcohol.

[Captain...]

The farmers have a point and, yes it is unfair that they are paid less than the cost of production...

But hold on a mo... most seem to be blaming the supermarkets entirely for this but it is also the big users like yoghurt producers and so on. Not only this but aren't the supermarkets responding to consumer demand for the lowest prices on EVERYTHING which clearly includes milk. Price wars have happened regularly and it is the consumer that effectively drives down prices at point of supply. Agreed, supermarkets have loss-leaders but it varies over a range of products, mostly (currently) alcohol.

If a supermarket wants to attract people to its stores by having cheap milk, or anything else, then that should eat into their margins, not the supplier's. Likewise if a supplier wants increase sales of a product by running a promotion then that should affect their margins and not the super markets. Of the 4 companies specifically identified 2 were big super markets and 2 were producers of dairy products.

Secondly I don't think there is any consumer demand for cheaper milk, I would say demand is very much price inelastic when it comes to milk, by that I mean nobody buys more milk because it is cheaper, but they may buy brand A over brand B because it is cheaper, but the overall demand will not change because it is an essential/integral commodity.

[Parafox]

If a supermarket wants to attract people to its stores by having cheap milk, or anything else, then that should eat into their margins, not the supplier's. Likewise if a supplier wants increase sales of a product by running a promotion then that should affect their margins and not the super markets. Of the 4 companies specifically identified 2 were big super markets and 2 were producers of dairy products.

Secondly I don't think there is any consumer demand for cheaper milk, I would say demand is very much price inelastic when it comes to milk, by that I mean nobody buys more milk because it is cheaper, but they may buy brand A over brand B because it is cheaper, but the overall demand will not change because it is an essential/integral commodity.

Not for the first time, I concede to your well made counter-points in so far as milk is price inelastic and to re-inforce this you don't see 2 for 1 on milk. However i don't think I said cheaper milk was in itself used to increase sales of the stuff. But, on the whole, prices are led by consumer demand. People won't pay more for milk than they absolutely have to (or sugar or potatoes or whatever else in a weekly shop). Prices of some "daily" items may well be kept artifically low to give the consumer the impression that supermarket A is on their side in providing cheaper essential commodoties. I still maintain that the consumer has a hand in forcing suppliers to provide goods at the cheapest possible price and that would include milk-based products too. Whilst this is not fair on the milk producers in this case, it is a fact of shopping.

Unfortunately the supermarkets and other major puchasers of milk have the upper hand in that they bulk buy in huge quantities. They virtually forced out competition from smaller dairies and set up their own "tied" super-producers who now are reaping the rewards of selling your soul to the devil.

[Captain...]

Not for the first time, I concede to your well made counter-points in so far as milk is price inelastic and to re-inforce this you don't see 2 for 1 on milk. However i don't think I said cheaper milk was in itself used to increase sales of the stuff. But, on the whole, prices are led by consumer demand. People won't pay more for milk than they absolutely have to (or sugar or potatoes or whatever else in a weekly shop). Prices of some "daily" items may well be kept artifically low to give the consumer the impression that supermarket A is on their side in providing cheaper essential commodoties. I still maintain that the consumer has a hand in forcing suppliers to provide goods at the cheapest possible price and that would include milk-based products too. Whilst this is not fair on the milk producers in this case, it is a fact of shopping.

Unfortunately the supermarkets and other major puchasers of milk have the upper hand in that they bulk buy in huge quantities. They virtually forced out competition from smaller dairies and set up their own "tied" super-producers who now are reaping the rewards of selling your soul to the devil.

Of course if given the choice between 2 identical products, all consumers would go for the cheaper, and if left solely to consumer demand everything would be free, but it is not because suppliers, producers, and supermarkets have costs to bear. The issue here is supermarkets set the end price to the consumer and they seem to be able to set the selling price to the farmer, which seems ridiculous, and the farmers really were stupid for getting into such a contract. Nobody should have to make a loss on their product simply because their buyers dictate it. Especially on such an inelastic product as milk, Morrisons and Asda could easily add a couple of pence to their milk price and it would not affect milk sales one bit, but it would stop the suppliers going bust, which would in turn drive up the selling price of milk, making it more expensive in the long run for the supermarkets.

I worked for a tools company for a while and they had a ridiculous contract with B&Q, every year they had to cut the prices sold to B&Q by 5%, so to get round it they just kept making minor "innovations" changing the product code and so it was a "new" product and could negotiate a new start price. Absolute nonsense but the only way they could keep the contract and make any money on it.

Unfortunately milk cannot be treated like that, it cannot be stored and they cannot just simply not milk the cows. Hopefully this does raise awareness and consumers start to question where these low prices are coming from, but I really don't see how it can be blamed on them.

Just out of interest does anyone here go to a specific supermarket because it has milk, or any other single product, cheaper than anywhere else? Personally I just tend to go to the closest.

[Parafox]

I go to Asda because we only have them and Morrison's and I (capital letters for effect) ********G hate Morrison's!!!!

I have enough contact with the elderly and insane at work, thank you

[Daggers]

FARMSUBSIDY.ORG

[ADK]

Of course if given the choice between 2 identical products, all consumers would go for the cheaper, and if left solely to consumer demand everything would be free, but it is not because suppliers, producers, and supermarkets have costs to bear. The issue here is supermarkets set the end price to the consumer and they seem to be able to set the selling price to the farmer, which seems ridiculous, and the farmers really were stupid for getting into such a contract. Nobody should have to make a loss on their product simply because their buyers dictate it. Especially on such an inelastic product as milk, Morrisons and Asda could easily add a couple of pence to their milk price and it would not affect milk sales one bit, but it would stop the suppliers going bust, which would in turn drive up the selling price of milk, making it more expensive in the long run for the supermarkets.

I worked for a tools company for a while and they had a ridiculous contract with B&Q, every year they had to cut the prices sold to B&Q by 5%, so to get round it they just kept making minor "innovations" changing the product code and so it was a "new" product and could negotiate a new start price. Absolute nonsense but the only way they could keep the contract and make any money on it.

Unfortunately milk cannot be treated like that, it cannot be stored and they cannot just simply not milk the cows. Hopefully this does raise awareness and consumers start to question where these low prices are coming from, but I really don't see how it can be blamed on them.

Just out of interest does anyone here go to a specific supermarket because it has milk, or any other single product, cheaper than anywhere else? Personally I just tend to go to the closest.

I go to Waitrose/Farmfoods/Aldi(sp?)/Sainsbury's plus leicester market for different products.