What don't you understand Micky?
It's sort of complicated they way the are doing it but it is effectively retrospective pay cuts. .
Basically one milk factory fucked up their forecasts and decided they didn't make enough money to keep shareholders happy so far this financial year. So they have decided they payed too much for milk the last 10 months and farmers now owe them money back. This was on an already shitty price. They kept it quiet up until the day it was announced. Even said there could still be price increases. .
I think they just recently announced a 380 million profit.
Because it makes no sense, people are buying expensive milk to 'help' farmers, and living the country I am all for helping farmers, but can't see how making the supermarkets more profit helps farmers.
Ok this confused me, I read this when I looked into it a bit, so this is correct??
Why are they able to do this??
Did the farmers majorly fuck up in their contract??
Why can't the farmers set the price for milk that is reasonable?? Ie someone has to provide the milk, it's not like the supermarkets can make their own milk, and I could not imagine it would be economically and logistically viable to import it.
So they are doing OK then.
My confusion lies in why would they want to fuck over farmers?? As without farmers they have no milk to sell and no more business. At the end of the day most people could not give a flying fuck if milk costs a few cents more, but I am guessing the supermarkets are making the $$.
Not sure what exactly you do, but has this impacted on you in any way (not expecting to learn your personal finances just talking in general)??
What are YOUR thoughts about this??
Will buying 'expensive' milk actually help farmers or is it just social media BS??
We don't set any prices. We take the price the factories are willing to pay. There is not much variation and they all try their best to make their pricing structures complicated to make them very difficult to compare.
We don't just get paid a price per liter. We get paid for protein and fat content then they charge us a volume fee for picking up the liters. Then you get charged on various quality pentameters. The prices then vary from month to month.
There is not really any power over prices as a farmer, you can't store it and you could say you are not happy with the price and they will find someone else down the road who is.
Ok, I read all this and coming from private industry I do not get this, hence me starting this thread.
If I make a product I set the price for the product not the buyer.
If all farmers stuck together and said we want X$ per unit of milk (within reason of course) what choice do the buyers have?? They can't just get milk from down the road if down the road charges the same??
I know this is simplified but may be a Dairy Farmers Union of sorts is needed??
I honestly think someone as a whole fucked up in a big way if the buyer dictates price.
Ok, I read all this and coming from private industry I do not get this, hence me starting this thread.
If I make a product I set the price for the product not the buyer.
If all farmers stuck together and said we want X$ per unit of milk (within reason of course) what choice do the buyers have?? They can't just get milk from down the road if down the road charges the same??
I know this is simplified but may be a Dairy Farmers Union of sorts is needed??
I honestly think someone as a whole fucked up in a big way if the buyer dictates price.
Ok, I read all this and coming from private industry I do not get this, hence me starting this thread.
If I make a product I set the price for the product not the buyer.
If all farmers stuck together and said we want X$ per unit of milk (within reason of course) what choice do the buyers have?? They can't just get milk from down the road if down the road charges the same??
I know this is simplified but may be a Dairy Farmers Union of sorts is needed??
I honestly think someone as a whole fucked up in a big way if the buyer dictates price.
this is why god invented futures. except there is no milk futures market in AUS, and think it is pretty small in the states.
Good for other ag's though.
because if you know your market and industry well enough you can hedge your risk... if you think in 6 months prices of milk will be down you would sell futures to deliver in 6 months and lock in current price.
Yeah real nice an easy in theory. The head of one of these milk factories on 3 mil a year didn't pick this and that's his job. So how the fuck am I supposed to.
i thought you were really clever?
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