Will you pay another 23p for farmers milk?

[Obelix 11]

Do you think the farmers will return the favour when there's a milk shortage and prices are running well above production costs?

 

I expect them to charge what they can. If they price is well above the production costs then I'm sure other places will open to start production, increase supply and the price will fall. Simple economics which tends to escape a lot of people on here...

[unbeliever 10]

And when enough of them have closed the supply of milk will fall, and the price will rise to the point it's profitable. That's how free market economics works - perhaps the farmers should have put money aside in good times and saved it for the bad instead of bleating on about how "hard done" they are, ie how bad they are at business...

 

I expect them to charge what they can. If they price is well above the production costs then I'm sure other places will open to start production, increase supply and the price will fall. Simple economics which tends to escape a lot of people on here...

 

Exactly. Nice not to be the only one on this thread who understands the most basic, simple and fundamental principle of economics.

 

I'm going to keep repeating my question to TJC1 until I get an answer.

[Obelix 11]

I won't hold my breath in expectation of you getting one sadly...

[TJC1 10]

And when enough of them have closed the supply of milk will fall, and the price will rise to the point it's profitable. That's how free market economics works - perhaps the farmers should have put money aside in good times and saved it for the bad instead of bleating on about how "hard done" they are, ie how bad they are at business...

 

Supermarkets driving prices down between them is almost a price fixing practice. What exactly should farmers do about it?

[Obelix 11]

See you don't get a response, you just get a different question back. I'm almost thinking this is Mecky in disguise.

 

Answer the points raised TJ and I'll consider answering yours.

[unbeliever 10]

Supermarkets driving prices down between them is almost a price fixing practice. What exactly should farmers do about it?

 

It's the reverse of price-fixing. It's competition.

 

The farmers are in a situation where they're in heavy competition with each other to reduce production costs and weather a time where the demand for their product is weak. It happens in all businesses.

 

Do you think the farmers will return the favour when there's a milk shortage and prices are running well above production costs?

[TJC1 10]

See you don't get a response, you just get a different question back. I'm almost thinking this is Mecky in disguise.

 

Answer the points raised TJ and I'll consider answering yours.

 

Ive just placed some facts on record. I dont want to get into a debate about free market economics.

 

Leaving economics and banks etc aside for a minute you dont think uk supermarkets have any ethical responsibility towards their uk suppliers at all?

[unbeliever 10]

Ive just placed some facts on record. I dont want to get into a debate about free market economics.

 

Leaving economics and banks etc aside for a minute you dont think uk supermarkets have any ethical responsibility towards their uk suppliers at all?

 

Do you think the farmers will return the favour when there's a milk shortage and prices are running well above production costs?

[Obelix 11]

If you don't want to get into a debate on free market economics what makes you think its possible to debate ethical responsibility?

 

I can only presume you don't want to debate some subjects because you are afraid that you will lose the argument and look foolish. Sorry but it doesn't work that way. You've been asked a reasonable question. Are you going to answer it?

[TJC1 10]

Do you think the farmers will return the favour when there's a milk shortage and prices are running well above production costs?

 

Has that happened yet? Has it happened historically?

Milk farmers were protesting against tesco as far back as 2002.

[unbeliever 10]

Has that happened yet? Has it happened historically?

Milk farmers were protesting against tesco as far back as 2002.

 

Yes. Otherwise they would all have gone bust years ago.

Government figures show the gate price of milk over 30p for most of 2013 and 2014.

And they protest every time the gate price of milk drops.

How about they work on reducing production costs rather than whinging about the free market competition which they don't seem to mind profiting from the rest of the time.

It will happen again inevitably and automatically when either demand rises, or supply drops as the weaker farms fail.

 

You've still not answered the question.

 

Do you think the farmers will return the favour when there's a milk shortage and prices are running well above production costs?

Edited August 12, 2015 by unbeliever

[Cyclone 10]

And when enough of them have closed the supply of milk will fall, and the price will rise to the point it's profitable. That's how free market economics works - perhaps the farmers should have put money aside in good times and saved it for the bad instead of bleating on about how "hard done" they are, ie how bad they are at business...

 

Unfortunately it might mean that the entire industry in the UK is gone.

Which makes us then reliant on imports, a situation we don't want to be in.

 

---------- Post added 12-08-2015 at 11:37 ----------

 

Every time the price of milk is above the production cost.

Perhaps you missed the key word. Large.

At 30p/litre, that's most of 2013 and 2014 to start with.

It should be easy enough to find the accounts for some dairy businesses and show just how much they were creaming off