Society/Culture Time to go dairy farmers. No one likes you!

[demondavey]

It was a joke. Dairy farmers are price gouging the very people they leaned off to survive. They are non-reciprocating hacks. Look it up or read the entire thread.

Dairy Farmers making some money off products you deem ‘excessive’ are not setting prices. The chains selling the stock set the price. What you don’t see, is what they BUY the product off the farmer for.

You’ve got no idea what you’re talking about.

 

[Herne Hill Hammer]

I think the other thing is coles/woolies would be selling milk for a song potentially even making a loss knowing they will make it back in spades when the OP buys butter and maybe a treat for the kids as well.

Milk is in the very back corner for a reason

Correct, they make you walk past everything else to get to it. I'd imagine it's still the same these days, but all of the dry goods with the biggest margins are in the knee or waist to shoulder range of your viewing.

Way, way back in the day when I worked with Coles, the profit from dry goods was around the 3% mark. All the cream came from the fresh food departments. Deli, butcher, dairy, fruit & veg and bakery.

As for predatory pricing, I think they both got dragged over the coals for it and legislation was introduced to outlaw it.

In a shopping centre you'd usually have either one of Coles or Woollies as the anchor tennant. Out the front of their stores would usually be all of the small private fresh food businesses. Coles / Woolies would constantly send staff out to do price checks, they would then either match it or beat it even if they had to sell at a loss. They would eventually force the small mum and dad business to go broke and close at which point they'd jack their prices up.

 

[Herne Hill Hammer]

Mate. Let me run you through some simple principles of economics before you shoot off on a tangent. There are hundreds of dairy farmers that run businesses in the country. They all have a primary focus of producing their products and ensuring end to end the process is sound and the product is good. They also need to manage their assets (livestock) and infrastructure to produce their products.

Everything I’ve just described costs a lot of money. When the product is ready for purchase, the real market mechanisms can be analysed. Who are the buyers? What price do they sell for? What costs are involved in selling? Enter Coles/Woolworths. Large and powerful grocery chains that monopolise the market and can buy in bulk of these dairy farmers.

As a dairy farming business, your objective is to move your stock in a short timeframe to ensure your inventory isn’t stagnant and pushing towards an expiration date. So when a large buyer comes along and says ‘We are buying for X because we’ve advertised it for Y’. Essentially they’ve got no choice. Because when Woolworths advertises for X, Coles pushes the price down on the same product to consumers.

The Dairy Farmers are at the mercy of the large chains and what they want to buy because they monopolise the market and can take high inventory loads very quickly. The Dairy Farmers are backed into a corner, do they sell or hold? Well they need to sell to keep moving don’t they? They are small businesses a lot of the time with facilities that don’t cater for high storage.

They also just can’t sell their products for a higher price at farmers markets. They don’t have the ability, time or resources to organise high volume sales to the public who know they can buy the product for $2 off a shelf.

I am not sure you know much about farming, but many of these businesses really struggle and are at the mercy of the big chains driving their profits sky high for their shareholders.

So next time you bitch and moan about ‘greedy’ farmers, maybe spare a thought for those farmers whose autopsy report reads ‘Suicide - gunshot wound to the head’.

Do the dairy farmers sell to Coles or Woolies or do they sell to the likes of Murray Goulburn, Fonterra, Parmalat, Lion, Norco?

As far as I can see, Farmer's Own milk from Woolworths is bought directly from farmers who made their own individual deals outside of the big processors / wholesalers. I think Browns is the same in WA.

In the story I've just read from 2016 it says that farmers were selling to Murray Goulburn who were giving them 35c a litre for it and it was costing farmers 45c a litre to produce it.

 

[demondavey]

Do the dairy farmers sell to Coles or Woolies or do they sell to the likes of Murray Goulburn, Fonterra, Parmalat, Lion, Norco?

As far as I can see, Farmer's Own milk from Woolworths is bought directly from farmers who made their own individual deals outside of the big processors / wholesalers. I think Browns is the same in WA.

In the story I've just read from 2016 it says that farmers were selling to Murray Goulburn who were giving them 35c a litre for it and it was costing farmers 45c a litre to produce it.

I believe Murray Goulburn May purchase some stock and on sell to Coles & Woolies, but some is directly purchased by Coles and Woolies.

 

[Benny78]

Dairy Farmers making some money off products you deem ‘excessive’ are not setting prices. The chains selling the stock set the price. What you don’t see, is what they BUY the product off the farmer for.

You’ve got no idea what you’re talking about.

Says the bloke negligent of the fact it is the farmers themselves choosing to "go big internationally" on the cheese market instead of manufacturing locally. They wouldn't even be here today if not for guilt tripping the public into buying from them over the supermarket brands. So people spent more on their brand and supported them, they survived. Then figured they could make more money elsewhere in the world and * off and make soft cheeses! Only causing a price hike at the expense of the same public that helped them of course!

The public is just some sort've interest free money bag to this lot. Should've bought Coles butter and watched them burn.

Does anyone remember Loveridges hardware? They burned. Sand and soil today is cheaper by the cubic meter.

 

[demondavey]

Says the bloke negligent of the fact it is the farmers themselves choosing to "go big internationally" on the cheese market instead of manufacturing locally. They wouldn't even be here today if not for guilt tripping the public into buying from them over the supermarket brands. So people spent more on their brand and supported them, they survived. Then figured they could make more money elsewhere in the world and **** off and make soft cheeses! Only causing a price hike at the expense of the same public that helped them of course!

The public is just some sort've interest free money bag to this lot. Should've bought Coles butter and watched them burn.

Does anyone remember Loveridges hardware? They burned. Sand and soil today is cheaper by the cubic meter.

It’s called capitalism. Google it.

Guilt tripping the public? You need to get your head around a few facts.

 

[Benny78]

It’s called capitalism. Google it.

Guilt tripping the public? You need to get your head around a few facts.

Were you in another country when they pushed their campaign to Boycott supermarket brand dairy?

They're disgusting all I'm saying is instead of supporting them. Everyone was actually better off buying the supermarket brands and forcing them further under. It's of no benefit to the consumer when a sector becomes well off and big enough with aspirations to make more internationally at their expense. I hope we've learned when you see a sector struggle like dairy farmers, the last thing you do is boycott supermarket brands.. you jump on the supermarket brands and get rid of them while you can.

If all the main brands fell under there would be more little brands instead. These business would be far to small to contemplate jumping onto the international cheese market. And their products would be for local sale.

How is it better for the consumer to boycott supermarket brands and pay the difference to supporting dairy farmers? It's better for them.. the consumer is shooting themselves in the foot. It's better for the consumer to kill these companies while they're weak. As it results in cheaper products and no bullshit shortages.

You could compare it to selling our gas overseas for more than it makes here. Same thing!

 

[demondavey]

Were you in another country when they pushed their campaign to Boycott supermarket brand dairy?

They're disgusting all I'm saying is instead of supporting them. Everyone was actually better off buying the supermarket brands and forcing them further under. It's of no benefit to the consumer when a sector becomes well off and big enough with aspirations to make more internationally at their expense. I hope we've learned when you see a sector struggle like dairy farmers, the last thing you do is boycott supermarket brands.. you jump on the supermarket brands and get rid of them while you can.

If all the main brands fell under there would be more little brands instead. These business would be far to small to contemplate jumping onto the international cheese market. And their products would be for local sale.

How is it better for the consumer to boycott supermarket brands and pay the difference to supporting dairy farmers? It's better for them.. the consumer is shooting themselves in the foot. It's better for the consumer to kill these companies while they're weak. As it results in cheaper products and no bullshit shortages.

You could compare it to selling our gas overseas for more than it makes here. Same thing!

Mate I don’t think you know what you’re on about

 

[Benny78]

Mate I don’t think you know what you’re on about

Hopefully next time they struggle (which will be soon) everyone boycotts them as I suggested. Then you shall see it's better for everyone if they fall under and smaller farmers replace their market share.

We shouldn't' have any companies "founded in 1909". They should have all fallen well under by now with more dedicated and ambitious people replacing their market share. It's not good for people to prop these companies up when they ask for help, take it as a sign to strike and buy elsewhere.

They're already big, they naturally want to get bigger. This is the point a company becomes too big and should be killed.

The new replacement brands, will not already have an established industry. Their time will be spent growing their base in the national industry. Compared to companies that already have that and choose to put their curd on a plane onto the international stage.

 

[strung_out7]

The average dairy farmer struggles. I'm from a family with generations of dairy farmers. Not anymore. 10-15 years ago they all got out of it as they were basically running at a loss. Instead they went to farming beef cattle. Now they are getting screwed over in this industry also (check the kilo price they sell for vs the supermarket price).

Luckily, they own the farms outright as they have been passed down, or purchased when land was affordable. It is virtually impossible for an individual to go and buy a farm and work it, while keeping their head above water.

 

[demondavey]

Hopefully next time they struggle (which will be soon) everyone boycotts them as I suggested. Then you shall see it's better for everyone if they fall under and smaller farmers replace their market share.

We shouldn't' have any companies "founded in 1909". They should have all fallen well under by now with more dedicated and ambitious people replacing their market share. It's not good for people to prop these companies up when they ask for help, take it as a sign to strike and buy elsewhere.

They're already big, they naturally want to get bigger. This is the point a company becomes too big and should be killed.

The new replacement brands, will not already have an established industry. Their time will be spent growing their base in the national industry. Compared to companies that already have that and choose to put their curd on a plane onto the international stage.

I’ll respond to this properly when I have more time. But you’re so far off the mark you are just missing everything.

 

[Benny78]

I’ll respond to this properly when I have more time. But you’re so far off the mark you are just missing everything.

I've tried explaining this to you countless times now. But if you won't listen and are instilled in your "poor hard done by farmer" ways then good for you.

What part of taking their product away from the nation and onto the international soft cheese market don't you understand? That's directly why we have a "shortage" and are currently paying a premium for butter.

 

[demondavey]

Hopefully next time they struggle (which will be soon) everyone boycotts them as I suggested. Then you shall see it's better for everyone if they fall under and smaller farmers replace their market share.

We shouldn't' have any companies "founded in 1909". They should have all fallen well under by now with more dedicated and ambitious people replacing their market share. It's not good for people to prop these companies up when they ask for help, take it as a sign to strike and buy elsewhere.

They're already big, they naturally want to get bigger. This is the point a company becomes too big and should be killed.

The new replacement brands, will not already have an established industry. Their time will be spent growing their base in the national industry. Compared to companies that already have that and choose to put their curd on a plane onto the international stage.

So basically, the producers of our most critical products you want to go under? Who are the smaller farmers you speak of? The farmers that’ll have to sell their produce for a demanded by price by the big chains? Perpetuating the same problem?

You’ve got a problem with successful organisations founded many years ago? So maybe we should just say ‘you’ve been in existence for too long, be done with you’? How in the world does that make sense? Isn’t it ironic that your mindset of pushing out successful businesses that have been in existence for many many years is just nonsensical?

Of course businesses want to get bigger, to succeed. And if the produce can be sold overseas then it’s going to be. That’s all part of a thing called exporting which contributes to our economy.

You’re also forgetting that the buyers set the price, I don’t know why you’re so hellbent on levelling criticism at the farming industry, it’s the monopolised markets powered by the big chains that set the buying price from the farmers and selling price to the consumer.

 

[pugsville]

Hopefully next time they struggle (which will be soon) everyone boycotts them as I suggested. Then you shall see it's better for everyone if they fall under and smaller farmers replace their market share.
.

This isn't what happens. Smaller farmers go under they are no replaced by new smaller farmers but bigger more corporate famers, or by imports.

 

[Seeds]

I guess there's never been a point in history farmers haven't been screwed come to think of it. Whilst on the other side of the coin public servants have never been screwed once but hopefully they'll get theirs eventually.

you mean the public servants who tend to get paid between 10 to 70 percent less than their counterparts in the private sector whilst doing the same work and dealing with moronic ministers who ignore their advice?

 

[Benny78]

http://www.news.com.au/finance/busi...y/news-story/aa239851540935f281d39618fc513644

A good read. Echo's almost everything I've said so far.

“They say they were killed by competition from Coles and Woolworths but I don’t think it was the whole story. Aussie Farmers were not happy with 5 per cent of the market, they wanted 30 per cent.

Not all too different than "going big" on the international cheese market at all. As opposed to just being a normal farmer selling 500g butter <$4.50 and 2L <$3.00 to the people that kept you afloat. Like so many dairy farmers managed for the last 10 000yrs.

 

[Benny78]

you mean the public servants who tend to get paid between 10 to 70 percent less than their counterparts in the private sector whilst doing the same work and dealing with moronic ministers who ignore their advice?

Know a lot of those people! Everytime the state libs get in they make them all redundant and restructure the staff with useless conservative mid 30's flogs that talk s**t all day and giggle instead of staying at their desks. They also keep the top public servants there, and constantly ask them how to do this and that. It's an absolute *ing joke! One example in particular is an absolute shambles! Kept my mate there as one of these go to guys too leech off, and the months they've "learned" off him he's taught them everything wrong you could possibly imagine, left and now they're in all sorts of legal shambles and incompetent disasters, probably unrelated to what they learned off my friend but absolutely hilarious.

 

[nut]

I guess there's never been a point in history farmers haven't been screwed come to think of it. Whilst on the other side of the coin public servants have never been screwed once but hopefully they'll get theirs eventually.

Have never been screwed??? What about Barnabys media adviser??