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Poor old Farmers ............ again :-(
On Jun 3, 9:56*am, Sacha wrote:
On 2011-06-02 23:41:36 +0100, "Ian B" said: Sacha wrote: On 2011-06-02 22:11:03 +0100, "Ian B" said: Bill Grey wrote: "Ian B" wrote in message . .. Roger Tonkin wrote: In article , says... Why why WHY do the farmers ALWAYS bleat hard times time and time again? Have you ever seen a poor farmer? There are plenty of them around here, where hill farming of sheep is the only possibility. Also we know that dairy farmers get less per lire for their milk than it takes to produce (unless you run a super farm!). Then why are they producing it? Something economically wrong there, isn't there? at Ian Supermarkets provide *a ready market for them but dictate the amount they are going to pay for their produce. *One very good reason why farmers are sometimes desperate. You can't sell goods for less than your production costs. If farmer A can't produce milk for price X, and farmer B can, then all that can happen is farmer A leaves the milk production market. That's how economic growth occurs, with the better supplier knocking the inferior supplier out of the market. Which is often unpleasant for the individuals concerned, but ultimately good for everyone. The thing is, nobody can "dictate" a price. I can say I'll only pay 100 for a Ferrari, but I can't make Ferrari sell me one for that price. Likewise if the supermarkets demand milk at a cheaper price than it can be produced, they will get no milk, because there won't be any producers at that price. Any farmer foolish enough to sell milk at below cost must be cross-subsidising it from some profitable enterprise, e.g. crops or sheep or something. He needs to get out of the cow juice business. He's destroying value in the economy, and in his own bank account. Ian 'Leaving a market" means the farmer has to sell his cows or have them put down. *For many/most, this is a heart breaking decision so they soldier on, hoping things will improve. *If they do get out and turn to e.g. beef farming, all that does is widen the door for the big buyers who dictate the prices to bring in milk from abroad. When it's our only source of supply as all domestic sources have gone, do you think it will still be cheap? This applies, of course, to all our food producers. *If you want to be in the hands of giant chains and foreign producers, this is the right way to go about it. Sacha, any business failure is heartbreaking. Back in the 70s, my dad was stupid enough to try to run a (taxi) business under a Labour government.. It failed. So did my parents' marriage. Our home was taken by the bank. I ended up in a borassically skint one parent family. You can't keep propping up businesses on emotive arguments about doe-eyed cows and sad farmers. snip I don't know why you use that analogy because I don't. *I'm talking hard business. If we see all our farmers go out of business because supermarkets are forcing down the price to the farmer, then we'll be the long-term users. *It has nothing to do with doe-eyed cows. But as for the farmers, it is a heart-breaking decision. *All the farmers I know would tell you it's a way of life, not just a job, 9-5. Frankly, I don'tk now why anyone would want to do it for so little reward in the end. -- Sachawww.hillhousenursery.com South Devon- Hide quoted text - - Show quoted text - They are trying to force a monopoly. Simple as that. |
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