Milk At Morrsons

[mikey4444]

Looks like all the protesting has achieved something after all :::::

http://www.bbc.co.uk/news/uk-33857629

Farmers ....................10 points
Greedy supermarket....0 points

[naomi24]

Greedy supermarket? Morrisons should be commended, no?

[mikey4444]

Naomi...yes, of course, but it was the Farmers taking direct action that forced Morristons to make this change.

[naomi24]

Not a lot to be said about that then except well done them.

[mikey4444]

Which was the point I was making Naomi !

[naomi24]

But Morrisons aren't being greedy - that's the point I was making.

[andy-hughes]

I am not sure the supermarkets are being 'greedy'.

As a business, they have a duty to their shareholders to make as much profit as possible.

There is an age-old practice in retailing called 'loss-leading', where a business will sell a popular commodity at a loss in order to draw incustomers, who will then by high-profit stock which will offset the loss incurred.

That has gone on for a very long time - all retailers do it, and the major supermarket chains have the clout to be able to really hammer down the price of their chosen loss-leaders - and a staple like milk is an obvious product to choose for this practice.

I suspect that they have done some rapid opinion-testing, and found that the customer will bear the additional cost, and their minor profit loss is offset by a mass of free advertising through the media as their campaign is rolled out.

Morrisons et al do not get to their level by not understanding how retailing - and image - work.

[BlueScorpion]

As far as I can tell from the article some other supermarkets have been doing this for a while:
"The NFU said that currently Waitrose, Marks & Spencer, Tesco, Sainsbury's and the Co-op have arrangements where a farmer is paid a price above the cost of production for milk. Asda, Lidl and Aldi currently do not offer such deals to farmers."

[mikey4444]

Naomi...I give up !

[naomi24]

Just saying, Mikey. ;o)

[AlwaysConfused]

I'm not great with math so please excuse me if I am wrong.
4 pints = 2.27 litres, currently being sold at 89p in Morrisons, which equals 39p per litre. It costs 32p to produce each litre, leaving a profit of 7p to the farmer (although I doubt they'll see all of that).
Morrisons add 23p to the cost. So 2.27 litres = 49pence per litre to the customer. The farmer gets 10pence, the other 7pence goes to the supermarkets pocket.

I'd say the winners are the Supermarkets trying to attract new or straying conscientious buyers, the novelty of which will wear off after a while once people realise they can buy milk cheaper elsewhere. Farmers advice: Don't have a cow, man

[Old_Geezer]

They have a responsibility to shareholders, but not just to them. There are moral responsibilities to not to use what power they have to force a price so low that the supplier gets screwed. But of course the system almost forces it if there are not legal limitations; for if your direct rivals do something immoral in order to benefit you feel obliged to do so too.

[fourteen85]

And when this newly packaged milk is on the shelf at 10p a litre next to the standard milk which is the consumer going to buy?

[murraymints]

I would buy the farmers milk !! don't mind paying extra to protect the future of our dairy herds..

[Mamyalynne]

Someone asked here a few days ago if people would pay more for their milk - the majority said 'yes'.

[Mamyalynne]

http://www.theanswerbank.co.uk/News/Question1436680.html

[Captain2]

'Greedy supermarket'? At least Morrisons have been proactive about the concerns. What about all the other supermarket chains? They discount/subsidise their milk as well and don't appear to be doing anything along these lines.
I know I work for Morrisons, albeit as a mere shelf stacker, so am not saying it as a loyal employee, but I feel they should be commended for acting on the matter.

[mikey4444]

Me too !

[bazwillrun]

so if its 23p per litre more and the farmer gets 10p of it are morrisons saying its costing them 13p per litre on top of the usual production costs...or are they pocketing an extra 13p per litre profit

morrisions are struggling down south so this also a good pr excercise

[tonyav]

Maybe Morrisons don't fancy a visit similar to what ASDA had.
Yes I would pay the extra 10p.
http://www.expressandstar.com/news/2015/08/09/pictures-and-video-dairy-farmers-protest-at-stafford-asda-taking-live-cows-into-the-supermarket/

[Tilly2]

I buy Cravendale milk. I never buy cheap milk......or cheap shoes...or cheap bread...or cheap meat. Then again, I can afford to be choosy. Not everyone can, though.