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Join Date:Posts: 6185
There's no need for intervention here from what I can see. The market can correct itself if the farmers just start playing it.
The average farm income in 2008 was €16,993 or 1/3 of average public sector earnings. Perhaps co-ops are the best way to get farmers off subsidies and onto a decent price for their product. But it isn't going to work if consumers simply migrate to Lidl/Aldi and start buying imported food instead.0 -
What you are suggesting is to build an entirely new supply chain structure when we already have one that just needs some tweaking. Sorry but I am not convinced.
you idea of "tweaking" involves telling retailers what to do and what not to do
the same retailers can just turn around and say "**** it its not worth the hassle"
my idea involves becoming the retailer, and letting the customers vote with their feetCan capitalism work when an essential part of the businesss is getting nothing out of their effort?
how do non for profits operate?
maximizing profit doesn't have to mean maximizing $€£ being made, it could also mean maximizing the wellbeing of its shareholders (the farmers)
thats the whole concept behind co-ops0 -
you idea of "tweaking" involves telling retailers what to do and what not to do
the same retailers can just turn around and say "**** it its not worth the hassle"
my idea involves becoming the retailer, and letting the customers vote with their feet
how do non for profits operate?
maximizing profit doesn't have to mean maximizing $€£ being made, it could also mean maximizing the wellbeing of its shareholders (the farmers)
thats the whole concept behind co-ops
But seriously we have a serious flaw in the current sytem which will cause many farmers to go out of business unless something is done. You believe the market will correct itself, I believe we will just end up importing produce and another country gets the benefit at the cost of thousands of jobs here.
Doubt we are going to get agreement on this0 -
The average farm income in 2008 was €16,993 or 1/3 of average public sector earnings. Perhaps co-ops are the best way to get farmers off subsidies and onto a decent price for their product. But it isn't going to work if consumers simply migrate to Lidl/Aldi and start buying imported food instead.0
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Join Date:Posts: 6185
do they sell the milk at 40 cent a litre? we heard it costs 30 to produce last night
if they are selling the milk at same rate as supermarkets, then the obvious question is why?are the supermarkets holding a gun to farmers heads,
once any contracts run out whats stopping a farmer from selling 70% of milk to the before mentioned Fairness for Farmers (FF) CO-op/Plc/Ltd and 30% to supermarkets?then band together and create the economies of scale not like it hasnt been done before in this country
When co-ops get too big for Tesco, they are simply brushed aside:
http://www.fingal-independent.ie/news/65-staff-laid-off-as-tesco-pull-contract-exclusive-1667251.htmlspot the difference?by becoming so big that the supermarkets would either have to listen to them or buy their milk elsewehrethat exactly the same concept as Trade Unions operate on, one worker doesnt have much say, but a group of workers can hold a country ransom0 -
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Join Date:Posts: 6185
If Lidl / Aldi can import food for sale for lower than the cost of getting it locally, there's a problem and it's not with the retailer.0 -
So farming should be non profit now, what a pity you weren't on frontline would have loved to hear the reaction to that LOL
did i say that? :rolleyes:
a question was asked whether a business has to operate on the principle of earning $$$, it doesnt as profit doesn't have to monetary
anyways theres certainly alot of profit to be made in Co-ops, the ones here in Ireland arent exactly loss making enterprises are they?But seriously we have a serious flaw in the current sytem which will cause many farmers to go out of business unless something is done. You believe the market will correct itselfI believe we will just end up importing produce and another country gets the benefit at the cost of thousands of jobs here.
what you propose involves forcing the retailers and the consumers to pay a certain fixed amount because the farmers are entitled to it, that will just end in tears altogether
actually it be interesting that your ideas do go thru just to see how the whole thing ends up hurting both farmers and consumers0 -
I don't know what price they sell it for so I don't know if the premise of your question is correct. Do you?Yes they are because there is nothing stopping the supermarkets buying milk from abroad, is there? When supermarkets control 80% of the sales of food, they have a lot of power. It's like a monopoly.
if this Fairness for Farmers (FF) Co-op can setup a chain of stores across country and supply chain where they can sell milk for cheaper than supermarkets, the people will flock to these stores and buy the cheaper local produce, dont you agree?
What impact do monopolies normally have on competition? They stifle it, no?
When co-ops get too big for Tesco, they are simply brushed aside:
http://www.fingal-independent.ie/news/65-staff-laid-off-as-tesco-pull-contract-exclusive-1667251.html
This doesn't make sense. THe point I was making is that the price is almost always higher in farmers markets because the farmers make a profit.
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if it costs 30 cent to make a liter and supermarkets sell it for 90 cent, then why cant farmers sell it for 80 cent, making a profit and undercutting the supermarket?yes, possibly outside Ireland - is that a good idea?
lets say supermarkets choose to buy from abroad and continue to sell milk (British lets say) at 90c a liter
while the local Fairness for Farmers (FF) Co-op chain shop sell a liter for 80c of Guaranteed Irish milk
where do you think people will buy their milk?You see, food is different because you can import tomatoes more easily than you can import workers
funny that you say that, theres alot of "imported" workers working on our farms0 -
did i say that? :rolleyes:
a question was asked whether a business has to operate on the principle of earning $$$, it doesnt as profit doesn't have to monetary
anyways theres certainly alot of profit to be made in Co-ops, the ones here in Ireland arent exactly loss making enterprises are they?
the serious flaw in the current system are the farmers who are failing to grasp a huge opportunity to better themselves
thats called competition, if you cant compete you die in business
what you propose involves forcing the retailers and the consumers to pay a certain fixed amount because the farmers are entitled to it, that will just end in tears altogether
actually it be interesting that your ideas do go thru just to see how the whole thing ends up hurting both farmers and consumers
How exactly will being paid a fair price hurt farmers. The producers have massive retained profits even after paying their dividends. I know they are in business to make profit but would you like to see all our food being imported, that is what will happen and when it does the price will go up because we can't supply it locally. Killing our agri-industry won't end in tears?0 -
Join Date:Posts: 6185
if this Fairness for Farmers (FF) Co-op can setup a chain of stores across country and supply chain where they can sell milk for cheaper than supermarkets, the people will flock to these stores and buy the cheaper local produce, dont you agree?if the farmers (the farmers association is one powerful lobby force) think we have a case of monopoly in Ireland they can bring the matter to EU, who are quite good at breaking up monopolies (see microsoft and intel)if it costs 30 cent to make a liter and supermarkets sell it for 90 cent, then why can farmers sell it for 80 cent, making a profit and undercutting the supermarket?by doing that the supermarkets will only hurt themselveslets say supermarkets choose to buy from abroad and continue to sell milk (British lets say) at 90c a liter
while the local Fairness for Farmers (FF) Co-op chain shop sell a liter for 80c of Guaranteed Irish milk
where do you think people will buy their milk?
http://www.tescopoly.org/funny that you say that, theres alot of "imported" workers working on our farms0 -
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Of course you didn't say that i was joking.Of course you didn't say that i was joking.
How exactly will being paid a fair price hurt farmers. The producers have massive retained profits even after paying their dividends. I know they are in business to make profit
yes they are in it to make profit and maximizing returns to their shareholders
and hence why I proposed that the farmers also go into this business setting up a co-op or a series of co-ops maximizing the profit for the farmers
instead of sitting around on pat kenny moaning about fairness they can be running very successful businesses selling direct to consumers
the direct approach worked out rather well for the likes of Dell, and once again the Co-op approach has worked in this country helping the co-op memberswould you like to see all our food being imported, that is what will happen and when it does the price will go up because we can't supply it locally. Killing our agri-industry won't end in tears?
not at all i always check labels in shop to see where the food is from
see my post before, supermarkets would be daft to start importing the likes of milk, potato and meats from outside Ireland
simply because most people would opt instead to buy this produce elsewhere
the supermarkets are exploiting the fact that farmers are a fragmented group and playing farmers against each other, hence why they workers farmers of Ireland should unite in a Farmers Union Co-op and hold the country ransom :eek:0 -
Why? Everything in Ireland is expensive - there are considerably higher regulations that farmers in Ireland have to abide by that don't exist in other countries. There are more health and safety regulations as well. Why would it be so surprising that food is cheaper to import in other countries and why would it necessarily be a symptom of some sort of problem with agriculture in Ireland?
If it's a matter of health and safety, we could insist that any produce being sold in Ireland is produced to accordance with those levels of health and safety.
If we still can't compete with imports after that level why bother continuting to compete directly? Either differentiate or move up the production chain.0 -
Join Date:Posts: 6185
Because the cost of importing should be more than enough to balance out any price difference in the common market.If it's a matter of health and safety, we could insist that any produce being sold in Ireland is produced to accordance with those levels of health and safety.If we still can't compete with imports after that level why bother continuting to compete directly? Either differentiate or move up the production chain.0 -
Because it won't be cheaper! That's the point. The food in supermarkets is too cheap, it's below the cost of production. Food sold by farmers is not and would not be cheaper than it is in supermarkets now.
whats the problem? (when selling products price is not always be all end all theres also quality)
scenario A: supermarkets are selling a liter of milk for 90c while paying farmers 30c as now
scenario B: our Fairness for Farmers Co-op is selling it in its shops for 80c while paying farmers 50c and reinvesting profit into the same farmer members
where will people go to buy milk (perform same exercise for other goods)? A or B ??
which scenario are the farmers better of with? A or B ??
theres also scenario C being pushed by the farmers
scenario C: supermarkets are forced to sell milk for 99c (hurting consumer) and are forced to pay farmers 50c (making it likely unprofitable to sell milk), if theres no profit then the supermarkets stop selling milk and hence hurting the farmers or worse bring in milk from abroad
i dont like scenario C because thats hurts everyone including the farmers (eventually), this sort of similar how to Trade Unions are now hurting everyone in the economy via strike in order to keep paying their members fat salariesTrue, hence the furore over Brazilian beef. But these things are easier said than done, especially where food is concerned. Food is often found in breach of labelling laws (which are flimsy at best).
as shown on frontline last night most people would opt to buy irish, its a matter of labeling and getting the laws sorted outBecause there is more to consider that just the economic consequences of dismantling our domestic agricultural sector.
if a sector of economy can not compete does it deserve to be subsidized or worse forcing the consumers to pay for the waste in a sector via increased prices
is that fair on consumers that they have to pay for the farmers inability to create a business that can take advantage of economies of scale and the (claimed) quality of Irish produce
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yes they are in it to make profit and maximizing returns to their shareholders
and hence why I proposed that the farmers also go into this business setting up a co-op or a series of co-ops maximizing the profit for the farmers
instead of sitting around on pat kenny moaning about fairness they can be running very successful businesses selling direct to consumers
the direct approach worked out rather well for the likes of Dell, and once again the Co-op approach has worked in this country helping the co-op members
not at all i always check labels in shop to see where the food is from
see my post before, supermarkets would be daft to start importing the likes of milk, potato and meats from outside Ireland
simply because most people would opt instead to buy this produce elsewhere
the supermarkets are exploiting the fact that farmers are a fragmented group and playing farmers against each other, hence why they workers farmers of Ireland should unite in a Farmers Union Co-op and hold the country ransom :eek:0 -
Join Date:Posts: 6185
scenario B: our Fairness for Farmers Co-op is selling it in its shops for 80c while paying farmers 50c and reinvesting profit into the same farmer memberstheres also scenario C being pushed by the farmers
scenario C: supermarkets are forced to sell milk for 99c (hurting consumer) and are forced to pay farmers 50c (making it likely unprofitable to sell milk)
i dont like scenario C because thats what this whole thing is about0 -
We have lamb from New Zealand and potatoes from Israel in our shops so it is already commonplace, both products we produce in abundance here.
and people are buying them
do you have a problem with people having choice?
do you want to force people to buy only Irish products? what happens when the countries to which Ireland exports (and we are a net exporter) retaliate??
theres only one option for farmers and thats to compete and create own co-op as outlined earlier0 -
Why? There are many differing factors between the agriculture sector of different countries.
True, hence the furore over Brazilian beef. But these things are easier said than done, especially where food is concerned. Food is often found in breach of labelling laws (which are flimsy at best).
Because there is more to consider that just the economic consequences of dismantling our domestic agricultural sector.
If producing milk isn't profitable, process the milk into something which is (cheese, ice-cream, milk powder etc.). If there's nothing that can be made from the milk that returns a profit, stop producing milk and focus on something that can make a profit from.
Access to food isn't an issue as we're part of a common market and seemingly incapable of profitably producing food at a price level where we can compete...
The other option, which I'm sure is most unpalatable to the land-obsessed, is simply to farm bigger. Keep merging neighbouring farms until the economies of scale created make the industy sustainable.0 -
Are famers the new Taxi Drivers now?
If you run a business and you're not making profit then get out of it.
ei.sdraob co-op is a viable possibility but the will would need to be there in the first place.0 -
Join Date:Posts: 6185
Like what? As far as I'm concerned, there's no point in performing activity of no economic benefit to the country.
I consider economics important but it is not the only thing to consider. In addition, you can look at something very narrowly, or you can look at how the agricultural industry impacts on other sectors like tourism.Access to food isn't an issue as we're part of a common market and seemingly incapable of profitably producing food at a price level where we can compete...
But to save a few pennies, we should dismantle our domestic agriculture industry and leave ourselves open to the vagaries of an increasingly unsustainable and volatile international food market? Total insanity.
I haven't even gone into the social and environmental ramifications of this plan of action.The other option, which I'm sure is most unpalatable to the land-obsessed, is simply to farm bigger. Keep merging neighbouring farms until the economies of scale created make the industy sustainable.0 -
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Where to start? There's the cost of distribution, the variables of the market, national environmental and safety regulations, cost of inputs, etc.
I consider economics important but it is not the only thing to consider. In addition, you can look at something very narrowly, or you can look at how the agricultural industry impacts on other sectors like tourism.
Access to food isn't an issue? Climate change is having serious impacts on our crop yields. Intensive farming practices are leading to soil degradation. Bee populations have dropped 90% in some areas, seriously affecting biodiversity and pollination. Our industrial food system is seriously oil-hungry (heavy machinery, fertilisation, pest control, transport, supermarket lighting, heating and cooling, transport home, heating & cooling in the home) and the IEA, formerly a sceptic of peak oil, has recognised that oil will peak somewhere between 2013 and 2037. Developing nations like China and India are getting a taste for milk and meat and they will be competing for these foods and their necessary inputs (grain etc) more and more, pushing prices up. Ireland and other countries' ground water is significantly polluted and fresh water is increasingly scarce.
But to save a few pennies, we should dismantle our domestic agriculture industry and leave ourselves open to the vagaries of an increasingly unsustainable and volatile international food market? Total insanity.
I haven't even gone into the social and environmental ramifications of this plan of action.Land-obsessed? What on earth does that mean?
Any time I've suggested the notion of farmers pooling their land in a limited company and taking a shareholding based on their contribution to the pool in order to gain from the economies of scale this should produce, the suggestion has been met by outrage at the idea of 'losing their land'.0 -
Join Date:Posts: 6185
If food is so scarce, why can't it be sold profitably?
I mean would you as an individual accept a job that didn't cover your living costs? And then you have to apply for a rake of subsidies through endless paperwork just to make ends meet? That's what we expect farmers to do in this country.The general sense I've experienced from Irish farmers that it is their birthright to make a living from whatever size of land they own and that their grandchildren should be able to make a living from that same patch of land.
Any time I've suggested the notion of farmers pooling their land in a limited company and taking a shareholding based on their contribution to the pool in order to gain from the economies of scale this should produce, the suggestion has been met by outrage at the idea of 'losing their land'.0 -
You replied to that so fast you missed my edit:
I'm no expert in crop rotation but from my limited understading of it: if our environment is so degraded, wouldn't the intervening years between the scaling back of production to what could be sold profitably and the consequent increasing of production when food scarcity kicked in do wonders for the land?
Are producers being paid less than the cost of production solely because those goods can be produced elsewhere far cheaper or is there another reason?0 -
Join Date:Posts: 6185
You replied to that so fast you missed my edit:I'm no expert in crop rotation but from my limited understading of it: if our environment is so degraded, wouldn't the intervening years between the scaling back of production to what could be sold profitably and the consequent increasing of production when food scarcity kicked in do wonders for the land?Are producers being paid less than the cost of production solely because those goods can be produced elsewhere far cheaper or is there another reason?
For example, how much of the cost of a chicken is paid by the consumer and how much is covered by subsidies? Why don't we get rid of the subsidies and just pay the farmers a decent price? Think of how much we'd save in reduced admin and paperwork!0 -
and people are buying them
do you have a problem with people having choice?
do you want to force people to buy only Irish products? what happens when the countries to which Ireland exports (and we are a net exporter) retaliate??
theres only one option for farmers and thats to compete and create own co-op as outlined earlier
You didn't address my point about the major retailers putting your proposed co-op out of business by undercutting it, they would have no problem doing this. It is a wonderful idea in theory but it simply wouldn't be allowed to happen. As tacannol has pointed out our food is being sold under the cost of production and the farmers co-op wouldn't be able to better that price anyway, and wouldn't have the economies of scale or distribution channels open to tesco and others.0 -
Then surely the option is for the farmer's co-op to sit between the individual farmers and the likes of Tesco?
If Tesco account for 80% of their sales, then Tesco is also prettily heavily reliant upon them as that produce is a huge amount of the stock on Tesco's shelves - never mind the impact of a threat not to sell Irish produce would have on Tesco's foot fall if the farmers made any coherrant attempt at getting the consumers on side that didn't involve taking over the M6 in tractors (i.e. a PR campaign).0 -
I have no problem with people having a choice.
You didn't address my point about the major retailers putting your proposed co-op out of business by undercutting it, they would have no problem doing this. It is a wonderful idea in theory but it simply wouldn't be allowed to happen. As tacannol has pointed out our food is being sold under the cost of production and the farmers co-op wouldn't be able to better that price anyway, and wouldn't have the economies of scale or distribution channels open to tesco and others.
i did address you point several times
if the supermarkets undercut by importing the milk, bread, potato & meat
then the consumer would have a choice
1. buy from cheaper importer food of questionable quality
2. buy the more expensive quality local food
and the end of the day its for the consumer to decide which to buy, not for the farmers
whether you like it or not, the alternative is banning imports and putting up trade-barriers and to do that we would need to leave the EU, the farmers would really "love" that now would they?0 -
Because the type and intensity of our current agricultural system is inherently unsustainable. We're a long way off the shocking things that happen in the US but there comes a certain point where the merry-go-round is going to have to stop. We don't need a break before we keep going - we need to change the system entirely.
its unsustainable because the population of this world is unsustainable
what do you propose we starve people?0 -
Then surely the option is for the farmer's co-op to sit between the individual farmers and the likes of Tesco?
If Tesco account for 80% of their sales, then Tesco is also prettily heavily reliant upon them as that produce is a huge amount of the stock on Tesco's shelves - never mind the impact of a threat not to sell Irish produce would have on Tesco's foot fall if the farmers made any coherrant attempt at getting the consumers on side that didn't involve taking over the M6 in tractors (i.e. a PR campaign).0 -
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i did address you point several times
if the supermarkets undercut by importing the milk, bread, potato & meat
then the consumer would have a choice
1. buy from cheaper importer food of questionable quality
2. buy the more expensive quality local food
and the end of the day its for the consumer to decide which to buy, not for the farmers
whether you like it or not, the alternative is banning imports and putting up trade-barriers and to do that we would need to leave the EU, the farmers would really "love" that now would they?0
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