News26 mins ago
Would You Pay More For A Pint?
.......of milk at the supermarket?
How can the dairy farmers continue to produce milk when it costs them 28p/day to produce it and they have to sell it at 23p?
This has been going on for ages and in my view is, wrong. I wouldn't mind paying an extra few pence. No business can survive selling their goods at a loss.
How can the dairy farmers continue to produce milk when it costs them 28p/day to produce it and they have to sell it at 23p?
This has been going on for ages and in my view is, wrong. I wouldn't mind paying an extra few pence. No business can survive selling their goods at a loss.
Answers
Why do the breweries not complain when the supermarkets sell beer at below cost price as a 'loss leader'.? Because the supermarkets buy the beer at a higher price than they sell it for and take the loss to bring more people into the shops. I do not see why they do not do the same with milk. If they want to sell it cheap as a form of advertising , just take the loss, it all...
08:04 Wed 05th Aug 2015
It isn't. You said you can not see why they don't do the same. Gromit says it's a different situation, milk and beer. That there is no over-supply of beer such that market forces force the price down. It's a deliberate policy to buy at the wholesale price and take the hit. Whilst for milk the retailer is in control since excess global (or national) production can not be sold elsewhere for a better price so the producer gets screwed.
Where these excessive situations occurs government intervention should be to correct the situation not let it fester. The EU decided a large supply was worth ensuring, thus the resulting problem with excess. If policy creates the excess supply then the means to buy up and use it at decent prices should exist too. But that requires forward thinking and political will.
Where these excessive situations occurs government intervention should be to correct the situation not let it fester. The EU decided a large supply was worth ensuring, thus the resulting problem with excess. If policy creates the excess supply then the means to buy up and use it at decent prices should exist too. But that requires forward thinking and political will.
