Dairy Farmer Issues

[prydey]

I wonder how many of the idealist's in this thread work in industries that have seen zero wage increase in the last 10 years?

There are many industries out there that are struggling and can't pass on rising costs to the consumer. Many of these business won't make it into the media but they face the same issues.

[mcflux]

Regarding previous posts, people had been eating organic foods for millennia before Organic Certification came in to place.

Originally Posted by kazawaki

https://a2milk.com.au/our-farms This doing both and the only milk that we will be buying.

Like pretty much all dairy sold in Australia, it comes from Aussie farms. a2 has a Niw Zillund parent company though

Following on from your post in which you're supporting these particular farmers, I'm kind of regretting posting that image a few pages back of what is Aussie-owned & what isn't. For example, what if your dairy neighbour has a contract with an offshore entity? Do you snub the brand they supply to help an Aussie-owned company, or do you support your neighbour, Australia be damned?

[SYZ]

Originally Posted by kazawaki

Not sure about the pointy head it is about peoples choice to not have to contribute to a scheme that is all about money nothing to do with religion.Perfect example cadburys used to mark there products with halal certification but after a backlash they removed the marking but continue to pay certification that's just sneaky.Fair enough some people don't care but think about the labeling confusion about Australian made and fresh food that must have origin clearly displayed,all being fair why is it not fair that all Halal products are clearly marked so people have a choice.Think about it next time you eat Mc, donalds, Kentucky fried chicken, Red rooster ,your local kebab after a few drinks at the pub, Subway or Sugar that's a real good one ALL SUGAR IS halal.

And this diatribe has exactly what to do with the issues of dairy farming?

[prydey]

http://www.news.com.au/finance/busin...877c16cf4ecab3

some good points in the article.

this has more to do with Russia and europe than colesworths selling $1 milk.

as always, colesworths is just an easy target by the idealists.

[Beastie]

Similar article here...

http://www.theherald.com.au/story/39...-says/?cs=2452

[lucas2]

I work for one of the big two supermarkets. We received a memo in regards to customers questioning staff about the supply issues. On the memo it stated that the $1L milk from my employer accounts for ~3% of the Australian milk production. The article linked previously states that both major companies combined "...only makes up about 6.5 per cent of domestic production". I try and remain unbiased here as my cousin is a dairy farmer doing it tough too, however, 6.5% is not a large amount.

In perspective that is less than half of the population of Melbourne (1.5 mil) relative to the total population of Australia (24 mil).

I think there are many broader issues here than the big two supermarkets. Do they have some responsibility to take? Yes. What about Murray-Goulburn and Fonterra? Who's to say if they charged more per L of milk, those additional profits would go to the farmer and not share holders/ other interests?

Also, people who think supermarkets withhold non-homebrand stock don't quite understand the profit margins on the two and supply and demand. Home-brand = $0.

[DJM83]

Originally Posted by lucas2

I work for one of the big two supermarkets. We received a memo in regards to customers questioning staff about the supply issues. On the memo it stated that the $1L milk from my employer accounts for ~3% of the Australian milk production. The article linked previously states that both major companies combined "...only makes up about 6.5 per cent of domestic production". I try and remain unbiased here as my cousin is a dairy farmer doing it tough too, however, 6.5% is not a large amount.

In perspective that is less than half of the population of Melbourne (1.5 mil) relative to the total population of Australia (24 mil).

I think there are many broader issues here than the big two supermarkets. Do they have some responsibility to take? Yes. What about Murray-Goulburn and Fonterra? Who's to say if they charged more per L of milk, those additional profits would go to the farmer and not share holders/ other interests?

Also, people who think supermarkets withhold non-homebrand stock don't quite understand the profit margins on the two and supply and demand. Home-brand = $0.

Exactly. I work for one of them aswell. And it's bs saying we withhold brand name milk but people just want to jump on the bandwagon. We have reduced shelf holdings of our own brand milk and increased the local guys milk. But now we are stuck as they cannot meet the demand in sales and now we look like we aren't trying to sell any others but our milk because we can't get any local brand stuff. Also whilst purchasing local bran milk, it is increasing profit for us at the same time.

[prydey]

Originally Posted by DJM83

but people just want to jump on the bandwagon.

this is all it ever is. for whatever reason there is a real prejudice against colesworths and any excuse will do to have another crack at them. ironically they aren't a lot different to ford and holden....

if you look at the lives and purchases of 90% of the whingers, it doesn't take long to see they are hypocrites anyway.

[Stefan]

Originally Posted by Romulus

There needs to be more competition in the grocery, hardware and fuel sectors. The duopoly of Woolworths and Coles, Woolworths Petrol and Coles Express, and Bunnings is a perfect environment for price fixing or price collusion.

You might be confused here? Price fixing usually means fixing prices at a higher price for consumers. This is not the case, prices are too low.

More competition means even lower prices.

The thread is about the price of milk being too low. How is greater competition going to increase the price of milk for farmers?

[Grunter]

Originally Posted by DJM83

... Also whilst purchasing local brand milk, it is increasing profit for us at the same time.

And also increases profits for suppliers of branded milk (including suppliers who provide generic label milk), more mullah going to the suppliers, less pressure to squeeze production/supply chain costs, more realistic price paid to milk producers, more producers staying in the game, more employment, etc. It's a balancing act and in this case, the scales have been tipped heavily to one side for a number of years with the consequences we see now. And it's not confined to dairy suppliers.

However add in that customers on the whole want to pay less for everything, and supermarkets needing to maximise profits for their shareholders, and having really only 3 big competitors, then the pain is pushed onto the suppliers, then onto their producers.

Originally Posted by lucas2

...Also, people who think supermarkets withhold non-homebrand stock don't quite understand the profit margins on the two and supply and demand. Home-brand = $0.

As for the big 2 not making profit off private label/generic products. Ask yourself why the big push to non branded products, particularly over the past 10 years. They are not pushing this as a favour to customers in reduced pricing. Lower price, smaller margin per product, more volume, overall more profitable to the chains.

All that being said, Coles/Woolworths are doing exactly what they should be doing as it maximises the return to their investors. They are playing the game that we have now (no big competition), and they would be doing wrong by investors if they didn't push the boundaries. That's the main game at the end of the day.