NOTE October Unofficial CHANGE OF VENUE

That's exactly what was being said about the milk, it's produced at such-and-such a cost, then the buyers are saying "we will only pay x pence a litre" - I can't see any difference at all. Uou produce something, hoping to get a price for it - you don't get what you want/need, you make a loss and go bust. That's what I originaly said.

Richard

Reply to
beamendsltd
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That's exactly the same as any other business/product - everyone wants it cheaper, everyone cuts costs and margins to compete, eventually producers go bust.

No, it never will in the modern world - the product, whatever it is, will be sourced cheaper overseas. Someone *always* produces it cheaper, and with modern tranportation distance is rarely a problem when prices have fallen sufficiently. "Quality home grown produce"? What does that mean - if it *really* means "Home grown produce - please supports us" (which it does) then that's wonderful - but one cannot make that plea unless one is prepared to answer the same plea from their neighbour. Like the bloke at Leek Show a couple years ago with his hog roast trailer - banners everywhere "Support British Farming", including on his Nissan - that just gets me very angry - because it's so bloody hypocritical.

In very few cases. In any market where there is competition each business has to make the descision wheter or not to pass cost increases on, in full or part, and whether that cost will be paid by the end consumer. Any business that just assumes it can pass increased cost on to it's customers is in *big* trouble (see Britsh Gas - 500,000 customers lost).

I have to pay a 3.4% fuel surcharge on my couriers deliveries these days. Can I pass this on? No. No-one else is, so I can't. It's a bummer, but that's life.

Richard

Reply to
beamendsltd

The days of nice fat margins are long gone in almost all markets, not least since dealers are competeling against other dealers. The dealer will, in most cases, source as cheaply as possible - he has to to stay in business himself.

Richard

Reply to
beamendsltd

You'll have to precis that - to big for the server.

Richard

Reply to
beamendsltd

Ok, so now you are telling me all farms are on a course to go bust. Along with all primary industry, I should think you are worried, particularly as so many of your suppliers are farmers, craddocks, brittpart etc... to turn it round then, seeing as you appear to be the expert, what do you suggest British farmers should do?

And we all know what happens when a country relies too heavily on imports...

I don't see why, as I said before, what do you expect him to buy?? An American defender I suppose? Given there are only sports cars that are truely british owned what do you suggest? If you say, yes but landrovers are built in the UK, then he is equally within his rights to buy a Nissan given Nissan employs so many British people in its British factory? And where do you suppose your supply of parts come from, certainly few are British so you are just as hipocritical. Perhaps if the shoe was on the other foot and it was your home, family and livlihood that was on the line you might not be quite so self righteous.

so how do you account for inflation then. Farm produce prices are at the lowest point in twenty years, yet inputs have followed the market and in many cases out perfomed it.

You have just buggered you own argument, the courier tells you how much it costs to deliver your parcels, you being the "supermarket" absorb that cost bscause it is a cost of production. A farmer cannot tell cows to produce milk cheaper, he is like the courier, his cost go up. The differenc is, he cannot pass the cost on as your courier does.

Reply to
Graham G

Cos dealers have never had to compete!!! The dealer in most cases, esp if franchised, has no choice where he sources from, and believe you me I know for a fact that margins have not fallen, in fact quite the opposite in the motor trade.

Reply to
Graham G

No, you applied that to all manufacturers when it is rarely true outside the farming industry. Industry works from the other end. It calculates what the market will stand, then builds a product based on that, thus ensuring a profit when it hits the shelves. Generally speaking the cost of manufactured products have gone up year on year, at least with inflation. Agricultural products have gone down in price year on year. In 1991 wheat was worth £120/tonne, currently it is sold at £60/tonne However in 1991 the cost of production of that tonne was cerca £35. Currently that runs at around £56. If both inputs and income had increased with inflation as it does in other industry, even given the increase in fuel, then farming would still be profitable.

You keep comparing farmers to manufacturing, which is wrong, farming is more akin to mining, forestry and other such basic producers of raw material. Yes you can argue that it can all be produced elsewhere cheaper, so lets assume that occurs. Farmers are non existant in this country as with most of Europe now because Russia is at full production and is feedin the world. Lets leave aside the mass unemployment and reduced tourism as a result, and concentrate on food. We are a full importer of food as is most other countries. Gradually the key produces become acostomed to a better way of life as happens with developing countries. They start to charge more for their produce, and they can because there are no further producers. The result is that they can chareg pretty much as what they like and you have no choice but to pay it. This may be an extreme end, but those who have studied it believe that this will be the case in approx 60 years time. It will mirror OPEC in the way food is controlled.

Now tell me that is healthy business. But what you tell me is that it is they way all things will go. Thats something to look forward to then...

Reply to
Graham G

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