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  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    taconnol wrote: »
    This scenario is called paying farmers the true price of a good

    and there lies your problem, you and other socialists dont understand that

    the true price of a good/service is whatever people are willing to pay

    the market determines what is "fair", everytime someone buys beef from new zealand and not Irish beef, the consumer is voting with their wallet

    if your farmers cant compete then forcing the people of this country to pay a fixed high price for goods (lets say 1.50 for a liter) is downright perverse


    for an example of what happens when the price of things like bread, milk etc are fixed by the state read a history book on USSR

    in the end it ended up decimating their farmers, and a country the size of Russia with its fertile soils had to resort importing grain from the capitalist Americans


  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    mickeyk wrote: »
    So set up a company that cannot possibly succeed, that'd really help the farmer. The big retailers will keep prices artificially low until they are gone, what good will that do anybody? Why not just pay the farmer a price that allows everybody make enough to keep going?

    for the nth time

    the co-op can compete on quality if they are unable to compete on price

    thats the whole strategy behind KerryGold for example, who are very popular in places like Germany despite having access to cheaper butter localy in Germany
    the guys on front-line last night where implying that the supermarkets are keeping all the markup for themselves, so if they are to be believed then yes they can compete on price as well


    and if they cant compete on quality or price then they really should go extinct and find another job, thats life life is not fair


  • Moderators, Science, Health & Environment Moderators Posts: 6,376 Mod ✭✭✭✭Macha


    Sleepy wrote: »
    Then surely the option is for the farmer's co-op to sit between the individual farmers and the likes of Tesco?
    You would think but look what happens when the co-op gets too uppity:
    65 staff laid off as Tesco pull contract

    The Dublin Meath Growers has laid off over 65 of its 75 staff since losing its contract with supermarket giants Tesco, last week, the Fingal Independent has learned.
    Sleepy wrote: »
    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).
    I'm not sure if Tesco account for 80% of all sales but supermarkets do control 80% of food sales in Ireland. Tesco is by far the biggest in Ireland (I have heard the figure that €1 out of every €4 spent in Ireland is spent in Tesco, versus £1 in every £7 in the UK) and can quickly switch to another supplier.

    But sure Tesco moved their distribution business out of Dun Laoghaire to cut costs and it was in the news for about a minute. No sign of Tesco sales slackening in Ireland! People are entirely disconnected from their food supply and don't even look at where produce is coming from. People don't even know what's in season any more.


  • Registered Users Posts: 4,196 ✭✭✭The_Honeybadger


    ei.sdraob wrote: »
    for the nth time

    the co-op can compete on quality if they are unable to compete on price

    thats the whole strategy behind KerryGold for example, who are very popular in places like Germany despite having access to cheaper butter localy in Germany
    the guys on front-line last night where implying that the supermarkets are keeping all the markup for themselves, so if they are to be believed then yes they can compete on price as well


    and if they cant compete on quality or price then they really should go extinct and find another job, thats life life is not fair
    What you are suggesting would take at least a decade to implement and you know as well as I do it would have no chance of succeeding. Our farming community would be dead and buried by then. we ain't gonna agree so lets leave it there eh


  • Registered Users Posts: 24,253 ✭✭✭✭Sleepy


    taconnol wrote: »
    You would think but look what happens when the co-op gets too uppity:

    I'm not sure if Tesco account for 80% of all sales but supermarkets do control 80% of food sales in Ireland. Tesco is by far the biggest in Ireland (I have heard the figure that €1 out of every €4 spent in Ireland is spent in Tesco, versus £1 in every £7 in the UK) and can quickly switch to another supplier.

    But sure Tesco moved their distribution business out of Dun Laoghaire to cut costs and it was in the news for about a minute. No sign of Tesco sales slackening in Ireland! People are entirely disconnected from their food supply and don't even look at where produce is coming from. People don't even know what's in season any more.
    It's easy bully an organisation that accounts for only 2 counties worth of production in a country of 26. Not so easy if the IFA managed to join all it's members into a single trading entity which would put them on a more level playing field with their main customers.

    I doubt even farmers outside of the Dublin-Meath Growers co-op gave more than a passing thought to them so it'd be hard to build a PR campaign around them. Deal on a national level, however, and you could cause outrage amongst the Irish public if the likes of Tesco took their business elsewhere.

    They're not quite a monopoly either, it'd be a major boon for other supermarkets to be able to advertise that they stocked Irish meat, veg and dairy whilst a major competitor was importing 'inferior' foreign produce.


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  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    mickeyk wrote: »
    What you are suggesting would take at least a decade to implement and you know as well as I do it would have no chance of succeeding. Our farming community would be dead and buried by then. we ain't gonna agree so lets leave it there eh

    why a decade? did it take a decade for other co-ops to come about?? at least the be doing something instead of sitting around and moaning

    so instead of doing something about the problem you propose that consumers are hit with higher prices?
    thats just downright daft
    if the cost of food goes up here, you are giving people more reasons to travel north of the border, have the farmers not learned anything


  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    i hope the EU comes down hard on the farmers and knocks some sense into them


    price-fixing and cartel

    thats 2 words that come to mind hearing about this "issue"



    btw milk costs 40cents a liter in Germany according to friend, i was just up in local Tesco and 2 liters of "Dairy" milk was 2.20 (1.10 a liter)

    last i checked were not as densely populated as Germany and have plenty of cows and fields


  • Registered Users Posts: 4,196 ✭✭✭The_Honeybadger


    ei.sdraob wrote: »
    why a decade? did it take a decade for other co-ops to come about?? at least the be doing something instead of sitting around and moaning

    so instead of doing something about the problem you propose that consumers are hit with higher prices?
    thats just downright daft
    if the cost of food goes up here, you are giving people more reasons to travel north of the border, have the farmers not learned anything
    A national network of co-ops and producers plus retail outlets and distribution & supply chain centres and networks could be organised overnight? Have you any idea what it would take to set that up? Investors found, planning for sites got and building undertaken. And Tesco/Dunnes/Supervalu will just watch on while it happens under their noses I suppose? C'mon do you really believe that could be done quickly. The type of operation you are talking about would have to build up slowly, and we have too many supermarkets as it is anyway, every large town has 4-5 big outlets, I would prefer the ones we have to sell Irish products sustainably, by all means sell imports too, and as you said let the consumer decide.


  • Moderators, Science, Health & Environment Moderators Posts: 6,376 Mod ✭✭✭✭Macha


    ei.sdraob wrote: »
    and there lies your problem, you and other socialists dont understand that
    OK there is really no need to go down the 'you-don't-agree-with-my-liberal-economic-theory-and-therefore-are-a-socialist' route.
    ei.sdraob wrote: »
    the true price of a good/service is whatever people are willing to pay
    And what about externalised costs?
    ei.sdraob wrote: »
    the market determines what is "fair", everytime someone buys beef from new zealand and not Irish beef, the consumer is voting with their wallet

    if your farmers cant compete then forcing the people of this country to pay a fixed high price for goods (lets say 1.50 for a liter) is downright perverse
    Oh lord, the market is not perfect, the market can fail and the market is currently being warped by:
    a) subsidies and
    b) monopolies

    The ultimate proof of this is farmers being paid less than the cost of production - how exactly does that fit in with the 'market-knows-all' theory?
    ei.sdraob wrote: »
    for an example of what happens when the price of things like bread, milk etc are fixed by the state read a history book on USSR
    I'm not talking about fixing prices.
    Sleepy wrote: »
    It's easy bully an organisation that accounts for only 2 counties worth of production in a country of 26. Not so easy if the IFA managed to join all it's members into a single trading entity which would put them on a more level playing field with their main customers.
    Good point.
    Sleepy wrote: »
    They're not quite a monopoly either, it'd be a major boon for other supermarkets to be able to advertise that they stocked Irish meat, veg and dairy whilst a major competitor was importing 'inferior' foreign produce.
    Yeah, I'm sure it's part of the reason Dunne's slogan is 'The difference is we're Irish' but really I think you'll find stocking or not stocking Irish produce really won't change the shopping habits of many. If you look at this article, you can see Tesco really aren't bothered about keeping Irish suppliers. And look at all the shoppers who flocked to the North with the price differences. I appreciate people wanting cheap goods but the economic repercussions go further than that.


  • Registered Users Posts: 8,452 ✭✭✭Time Magazine


    taconnol wrote: »
    I have heard the figure that €1 out of every €4 spent in Ireland is spent in Tesco

    Lol, who told you that? Farmers?

    Tesco Ireland sells approx €3bn worth of stuff a year. Irish GDP is approx €190bn.

    As for the UK, Tesco's sales revenue is approx £45bn, UK GDP is approx £1670bn.


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  • Registered Users Posts: 4,196 ✭✭✭The_Honeybadger


    Lol, who told you that? Farmers?

    Tesco Ireland sells approx €3bn worth of stuff a year. Irish GDP is approx €190bn.

    As for the UK, Tesco's sales revenue is approx £45bn, UK GDP is approx £1670bn.
    I'm sure he meant every 4 euro in grocery retail!


  • Registered Users Posts: 8,452 ✭✭✭Time Magazine


    Fair enough, but "spent in Ireland" is much different to "spent in the grocery retail sector"!


  • Moderators, Science, Health & Environment Moderators Posts: 6,376 Mod ✭✭✭✭Macha


    mickeyk wrote: »
    I'm sure he meant every 4 euro in grocery retail!
    Thanks, that is what she meant! ;)


  • Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    taconnol wrote: »
    The ultimate proof of this is farmers being paid less than the cost of production - how exactly does that fit in with the 'market-knows-all' theory?
    When you talk about being paid are you taking into account subsidies?


  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    taconnol wrote: »
    OK there is really no need to go down the 'you-don't-agree-with-my-liberal-economic-theory-and-therefore-are-a-socialist' route.
    i wasn't branding you, but thats what socialists/communists do > try to fix prices, and this time and time again has shown to do more harm than good

    taconnol wrote: »
    And what about externalized costs?

    what exactly are you referring to so theres no misunderstanding :), things such as carbon credits?

    taconnol wrote: »

    Oh lord, the market is not perfect, the market can fail and the market is currently being warped by:
    a) subsidies and
    b) monopolies
    .
    a) i dont agree with CAP and i think that should be removed, since it does distort market, but of course farmers wont like that now would they :)
    b) monopolies are dangerous hence the job of EU and state to break them down, and that they do (albeit often to late)

    taconnol wrote: »
    The ultimate proof of this is farmers being paid less than the cost of production - how exactly does that fit in with the 'market-knows-all' theory?
    if the farmers want to sell produce at loss then thats their choice,
    any sane business person would run from such an arrangement

    i have outlined a way for both farmers and consumers to benefit via creation of a co-op and selling direct (call it the Dell model) im trying my best here to think of a best possible solution, and that seems to be it ;)

    even if farmers cant compete on price with cheaper imported foods, they can compete on quality
    look at marks & spencer who make money by competing on quality not price

    taconnol wrote: »
    I'm not talking about fixing prices.
    unfortunately the farmers and @mickeyk are

    they want more money for their produce (fair enough who doesn't) but are not willing to sell to consumers directly themselves (As per my proposal) and are blaming the supermarkets for their problems

    put it simply any increases will endup costing the consumer, i already pointed out that we have more expensive milk here than in Germany despite having better milk producing conditions

    taconnol wrote: »
    Yeah, I'm sure it's part of the reason Dunne's slogan is 'The difference is we're Irish'.

    unfortunately here in Ireland we no longer can compete (thanks to wages, energy,rent etc costs) on price in many areas, but we can try to compete on quality

    taconnol wrote: »
    I think you'll find stocking or not stocking Irish produce really won't change the shopping habits of many. If you look at this article, you can see Tesco really aren't bothered about keeping Irish suppliers. And look at all the shoppers who flocked to the North with the price differences. I appreciate people wanting cheap goods but the economic repercussions go further than that.

    if people want to vote with their feet thats their choice,

    what can you do about that? build a wall around the borders?

    every-time consumers open their wallet they cast a vote for what they want whether its based on price on quality

    if farmers want to price themselves into oblivion let them, i dont see why we should subsidize them more


  • Registered Users Posts: 4,196 ✭✭✭The_Honeybadger


    @ei.sdraob I have outlined a number of times why your plan could not possibly work and you have chosen not to address the points I have made.
    I am saying that if we let the market go as it is we won't have farmers any more, they are being placed in an impossible situation. You say the price of something is what people are willing to pay, people are being offered these low prices on commodities like milk because the multiples are offering them off the backs of farmers who produce them at a loss. If you think that is sustainable then fair enough, but IMO that is not the free market, that is exploitation. We are heading for alot of job losses in this sector if things continue as is, that obviously doesn't bother you and that's fine.


  • Registered Users Posts: 27,645 ✭✭✭✭nesf


    taconnol wrote: »
    Please explain how it would be possible for the FF Co-Op to sell it for cheaper, given the massive economies of scale in purchasing and logistics that Tesco benefit from. You're dreaming up scenario B and I'm saying it isn't possible.

    Easy actually. If the co-op is set up to not turn a profit then it'd be relatively easy to match Tesco prices since there's only one slice of profit being taken.

    The problem is that a farmer's co-op could only offer such prices on homegrown stuff and couldn't offer the wealth of products seen in Tesco et al at reasonable prices due to a lack of economy of scale etc.


  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    mickeyk wrote: »
    @ei.sdraob I have outlined a number of times why your plan could not possibly work and you have chosen not to address the points I have made..

    i have addressed them over and over

    we already have successful co-ops in this country, what i proposed aint much different, the same German friend of mine who said milk costs 40c there also mentioned how he loves KerryGold butter and how its so nice, now that tells you something doesnt it? not only can Irish farmers compete on quality its quite likely they can compete on price too

    the farmers are missing out on huge opportunity to make themselves better of and instead think they can take the easy path by moaning and shafting the consumer in order to improve themselves, except that will backfire if its allowed
    mickeyk wrote: »
    I am saying that if we let the market go as it is we won't have farmers any more,.
    yes we wont have lazy uncompetitive farmers anymore, good riddance

    farmers like the ones who supply the before mentioned KerryGold and other Irish Co-ops and companies who compete and export worldwide on quality will do just fine

    mickeyk wrote: »
    You say the price of something is what people are willing to pay, people are being offered these low prices on commodities like milk because the multiples are offering them off the backs of farmers who produce them at a loss.
    is someone holding a gun to these farmers heads telling them to sell something at a loss?
    they can either do something about it (See Co-op idea) or go out of business, getting subsidized (even more) is not an option since it will only hurt consumers and then the farmers themselves

    mickeyk wrote: »
    . If you think that is sustainable then fair enough, but IMO that is not the free market, that is exploitation.

    its exploitation only because some farmers are allowing themselves to be exploited
    as i said before > theres strength in numbers and they can be the ones in position to dictate to supermarkets, the sooner the farmers realize that the better off they will be
    some farmers have realized the above long ago and have gotten together into co-ops and agricultural companies who are not doing to bad at all

    mickeyk wrote: »
    We are heading for alot of job losses in this sector if things continue as is, that obviously doesn't bother you and that's fine.

    it bothers me that that people continue to moan about high cost of doing business in ireland (example labour, energy, rent) but do nothing about it except moan and expect subsidies and welfare

    thats pure laziness


  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    nesf wrote: »
    Easy actually. If the co-op is set up to not turn a profit then it'd be relatively easy to match Tesco prices since there's only one slice of profit being taken.

    The problem is that a farmer's co-op could only offer such prices on homegrown stuff and couldn't offer the wealth of products seen in Tesco et al at reasonable prices due to a lack of economy of scale etc.

    and thats all they have to sell, homegrown stuff, once they corner the local market they can expand abroad as other co-ops in this country have done

    i got the CO-op opening shops idea after a visit to the local butcher

    who was selling quality meat, milk (1.20 for 2 liters) and eggs direct from local farms at lower prices than Tesco next door (Tesco brand milk 2 liters is 1.50)

    which i found amazing!
    by having local connections and being agile this guy is managing to make a living while working next door to a Tesco

    /


  • Registered Users Posts: 4,196 ✭✭✭The_Honeybadger


    ei.sdraob wrote: »

    yes we wont have lazy uncompetitive farmers anymore, good riddance

    farmers like the ones who supply the before mentioned KerryGold and other Irish Co-ops and companies who compete and export worldwide on quality will do just fine
    My friend who I mentioned earlier is supplying them and not making a penny as HE IS SUPPLYING THEM (A MASSIVELY PROFITABLE MNC) BELOW COST OF PRODUCTION!!! Made that big so you wouldn't miss it as you only seem to read what you want to read and what supports your argument. You say nobody is holding a gun to his head but what are his options, stop milking the cows and make nothing, illegally dump the milk in protest, bottle 200,000 gallons himself and sell it in the local town?

    Your point about your local butcher I take, but ye are talking about such a small scale that it wouldn't make any difference to farmers. Majority of sales in Ireland will always be through the multiples, though thats no problem by your logic as you seem to think this fairytale co-op could build the same structure that has taken Dunnes decades to build overnight. Your co-op idea is good as i said before as a niche quality local foods type operation but if you seriously think it could take on the multiples you must be on a different planet.

    Bottom line if our agri sector is left to the markets it will wipe out alot of efficient and good farmers, and we lose self sufficiency in food production, is that a good idea?


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  • Registered Users Posts: 13,186 ✭✭✭✭jmayo


    ei.sdraob wrote: »
    there is one question that wasnt asked last night unfortunately on Frontline that i will now ask

    why cant the farmers themselves setup a chain of shops (under a co-op scheme?) and sell direct to the customers in Ireland their produce? at whatever prices they think are "fair"

    why not??

    how come no one in the frontline room asked the most obvious of questions?

    The funny thing is that is how most of our current middlemen started off.
    They were coops but the big successful well run ones have become public companies and thus the farmers are no longer the real owners.
    Yes they may have shares but the big shareholders maybe a pension fund or a bank and they couldn't care less about the suppliers.
    The creameries, meat factories, pig factories claim they have to hone the raw material and package it, deliver it to retailers etc so they want their own margin.

    The last part is that the likes of Tesco (and the others) are taking margin on top for displaying the item.
    The large supermarkets are refusing to state what the margins are on thing s like milk.
    The farmer gets 20-23 cent a litre and how much do we pay in supermarket ?

    At the moment dairy farmers are making a loss.
    When Kerry farmers looked for price increase they were told by Kerry group that they would bulk import milk from NZ and could get it as cheap.

    Costs are much higher in Ireland than NZ so NZ farmers can produce it cheaper.
    Yes they don't have subsidies in NZ, but their farms are larger (historically as well as recently) and in some regards their climate is a lot better.
    In some areas they do not have to house their lifestock like in this country.

    I know this leads to argument about if loss making then get out, have larger farms and more cost effective production.
    Treat it like any pther industry will be the argument.
    Well in that case go to states and take a look at a feedlot or one of the massive pig factories in the likes of Iowa.
    Take a look at what has happened to rural USA and if people want that to happen in Ireland then fair enough.
    We can always accomodate extra suburbs on big cities, extra people on the dole so why not.
    ei.sdraob wrote: »
    i wasn't branding you, but thats what socialists/communists do > try to fix prices, and this time and time again has shown to do more harm than good

    what exactly are you referring to so theres no misunderstanding :), things such as carbon credits?

    a) i dont agree with CAP and i think that should be removed, since it does distort market, but of course farmers wont like that now would they :)
    b) monopolies are dangerous hence the job of EU and state to break them down, and that they do (albeit often to late)

    if the farmers want to sell produce at loss then thats their choice,
    any sane business person would run from such an arrangement

    i have outlined a way for both farmers and consumers to benefit via creation of a co-op and selling direct (call it the Dell model) im trying my best here to think of a best possible solution, and that seems to be it ;)

    even if farmers cant compete on price with cheaper imported foods, they can compete on quality
    look at marks & spencer who make money by competing on quality not price

    unfortunately the farmers and @mickeyk are

    they want more money for their produce (fair enough who doesn't) but are not willing to sell to consumers directly themselves (As per my proposal) and are blaming the supermarkets for their problems

    put it simply any increases will endup costing the consumer, i already pointed out that we have more expensive milk here than in Germany despite having better milk producing conditions

    unfortunately here in Ireland we no longer can compete (thanks to wages, energy,rent etc costs) on price in many areas, but we can try to compete on quality

    if people want to vote with their feet thats their choice,

    what can you do about that? build a wall around the borders?

    every-time consumers open their wallet they cast a vote for what they want whether its based on price on quality

    if farmers want to price themselves into oblivion let them, i dont see why we should subsidize them more

    FFS farmers are not trying to price themselves into oblivion.
    Would you work for what someone in similar job got in 1985 ?

    Price of foodstuffs have gone up but the producer is not getting it, their cut has affectively decreased.
    Compete on quality is fine for a minority, it is the old story abotu go into off farming enterprises, grow or rear something unusual.
    Well how many bleeding rabbit farmers and how many b&bs can we have ?
    There are niches that farmers can break into, but no every one of them can do that or are lucky enough to have those options.

    You keep harping on about selling direct to public.
    It is easy for guy with 10 cows to start his own cheese making but if you have a hundred it is slightly more difficult to handle all that milk.

    Seriously most of the ordinary joe soaps don't give a sh** about quality, they want cheap food.
    Check out any of the food programs dealing with this in UK.
    Check out the guy from River Cottage and how he was told by lady in shop she could 4 of the other chicken breasts for 2 of his free range ones.

    Yes the more discerning will want fine cheese, a good steak, a chicken breast from free range chicken, but the bulk of consumers just want the neat packaging only costing few quid.
    They will want to buy burgers down the local chipshop and most won't really care that it is the sh** meat from the animals and not prime beef.

    There is another issue with your sell direct scheme and it is the level of bureaucracy that has come into the food chain system.
    Slaughtering animals no longer can be done by just any normal butcher AFAIK.
    Some of the things are very good for food safety, but it is a bit rich that you can buy food in supermarket from other countries (much cheaper) where there are none of these guarantees.

    Actually speaking of selling direct to consumers, there are initiatives in the states where people club together to buy a carcase.
    You get group of people to order sections of a carcase and when slaughtered each person gets their bit.
    It cuts our the middlemen.
    Now only thing that might hamper that here is the EU abbatoir regulations ?

    I am not allowed discuss …



  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    mickeyk wrote: »
    My friend who I mentioned earlier is supplying them and not making a penny as HE IS SUPPLYING THEM (A MASSIVELY PROFITABLE MNC) BELOW COST OF PRODUCTION!!! Made that big so you wouldn't miss it as you only seem to read what you want to read and what supports your argument.

    Your point about your local butcher I take, but ye are talking about such a small scale that it wouldn't make any difference to farmers. Majority of sales in Ireland will always be through the multiples, though thats no problem by your logic as you seem to think this fairytale co-op could build the same structure that has taken Dunnes decades to build overnight.

    Bottom line if our agri sector is left to the markets it will wipe out alot of efficient and good farmers, and we lose self sufficiency in food production, is that a good idea?

    markets dont wipe out the efficient and profitable businesses, markets are very Darwinian its all about the survival of the fittest

    if they are efficient and produce good quality products then they should have no trouble selling their products at a profit

    you complain that the supermarkets have supply chains, etc and you are saying that farmers are not capable of creating a company specifically to manage their supply chain and sell direct to costumers

    i think thats alot of fud, not only the idea im proposing can be done it has been done


    the farmers complain that they are being ripped of by the supermarkets with supply chains, once again i dont see why they cant become a supply chain in themselves

    but i suppose its always easier to moan and complain about the government and move the problem onto someone else (the consumers)

    than actually do something about it



    btw one of my family members operates a supermarket, not only does he manage to compete with the likes of Centra and other larger supermarkets in the area, i had a friend who was working in a Londis close to one of the shops complain how they were loosing customers because they were being undercut by my family member who was skipping the whole supply chain and dealing directly with many other businesses

    i really worry for this country when people moan non stop about issues but dont realize that each problem always presents an opportunity, and businesses that solve problems make money :)


  • Registered Users Posts: 4,196 ✭✭✭The_Honeybadger


    ei.sdraob wrote: »
    markets dont wipe out the efficient and profitable businesses, markets are very Darwinian its all about the survival of the fittest

    if they are efficient and produce good quality products then they should have no trouble selling their products at a profit

    you complain that the supermarkets have supply chains, etc and you are saying that farmers are not capable of creating a company specifically to manage their supply chain and sell direct to costumers

    i think thats alot of fud, not only the idea im proposing can be done it has been done


    the farmers complain that they are being ripped of by the supermarkets with supply chains, once again i dont see why they cant become a supply chain in themselves

    but i suppose its always easier to moan and complain about the government and move the problem onto someone else (the consumers)

    than actually do something about it



    btw one of my family members operates a supermarket, not only does he manage to compete with the likes of Centra and other larger supermarkets in the area, i had a friend who was working in a Londis close to one of the shops complain how they were loosing customers because they were being undercut by my family member who was skipping the whole supply chain and dealing directly with many other businesses

    i really worry for this country when people moan non stop about issues but dont realize that each problem always presents an opportunity, and businesses that solve problems make money :)
    Again what you are talking about is niche products and businesses on a small scale, would you like the entire farming community in Ireland to become speciality farmers? It just wouldn't work, and most towns have farmers markets already. The industry is too big for that and we have companies like Kerry who are very good at what they do, we have a good agri industry and should be working to ensure it is sustainable. I agree with you when you say we need bigger and more efficient farms, this could save the farmer 1-2 cent per litre but there has to be give on both sides.


  • Moderators, Science, Health & Environment Moderators Posts: 6,376 Mod ✭✭✭✭Macha


    SkepticOne wrote: »
    When you talk about being paid are you taking into account subsidies?
    Yes. According to the IFA's 2009 Review of farm income (based on CSO data):
    In 2009, Direct Payments of €1.87 billion were greater than National Farm Income €1.65 billion, as the majority of farm enterprises in 2009 were operating at below the costs of production
    ei.sdraob wrote: »
    what exactly are you referring to so theres no misunderstanding :), things such as carbon credits?
    It's sad when for something to be considered of value there has to be a € in front of it. I'm talking about carbon emissions, animal welfare, other emissions, water pollution, soil degradation, loss of biodiversity (which has been valued at approx. €2.1bn per annum) and the social implications of the various type of agriculture, the knock-on effects on tourism, one of our biggest industries, loss of food security, etc.
    ei.sdraob wrote: »
    if the farmers want to sell produce at loss then thats their choice,
    any sane business person would run from such an arrangement
    So now you're calling all farmers insane. No surprise then that farmers are at higher risk of suicide than many other groups in our society due to financial stress. But in seriousness, I don't understand why you continue to filter every piece of information given to you through the 'market-knows-all' lens and come out with the most ridiculous statements like farmers want to sell at a loss. The mind boggles.
    ei.sdraob wrote: »
    i have outlined a way for both farmers and consumers to benefit via creation of a co-op and selling direct (call it the Dell model) im trying my best here to think of a best possible solution, and that seems to be it ;)
    I think that other posters have clearly explained what has happened to this model in the past and why it would not work.
    ei.sdraob wrote: »
    even if farmers cant compete on price with cheaper imported foods, they can compete on quality. look at marks & spencer who make money by competing on quality not price
    Of course but what sort of market share do M&S have vs Tesco?
    ei.sdraob wrote: »
    if people want to vote with their feet thats their choice,
    You see I don't put so much faith or responsibility in people to actually think that they won't choose saving a few pennies now rather than see the long term and wide-reaching benefits of supporting our Irish agricultural system. Agriculture is far too important to just leave it up to the person in Tesco to decide whether it stays or goes.
    ei.sdraob wrote: »
    if farmers want to price themselves into oblivion let them, i dont see why we should subsidize them more
    Now you're just being silly.


  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    taconnol wrote: »
    Agriculture is far too important to just leave it up to the person in Tesco to decide whether it stays or goes.

    you obviously completely skipped over what i have written in this thread :(

    1. the farmers can come together and take that "power" from the likes of tesco as per my suggestion

    2. consumers dictate prices not producers (and yes Tesco is a customer of the farmers), you seem to have a huge problem understanding this basic foundation of commerce and hence why you are tripping over yourself, the alternative to consumer choice is a fixed market cartel, and i can tell you those always end badly for everyone involved

    you and the farmers think that yee can dictate prices, and there lies the problem




    im not gonna bother replying to everything and continue in this thread since we are just going around in circles now :( and everything that needs to be said was said, so to keep it short the summary:


    the farmers can either use the system to their advantage or they can moan about how its "unfair" and expect the state to put up protectionist measures that would harm the consumer and then eventually the farmers themselves


  • Registered Users Posts: 13,186 ✭✭✭✭jmayo


    ei.sdraob wrote: »
    you obviously completely skipped over what i have written in this thread :(

    1. the farmers can come together and take that "power" from the likes of tesco as per my suggestion

    2. consumers dictate prices not producers (and yes Tesco is a customer of the farmers), you seem to have a huge problem understanding this basic foundation of commerce and hence why you are tripping over yourself, the alternative to consumer choice is a fixed market cartel, and i can tell you those always end badly for everyone involved

    you and the farmers think that yee can dictate prices, and there lies the problem

    im not gonna bother replying to everything and continue in this thread since we are just going around in circles now :( and everything that needs to be said was said, so to keep it short the summary:

    the farmers can either use the system to their advantage or they can moan about how its "unfair" and expect the state to put up protectionist measures that would harm the consumer and then eventually the farmers themselves

    It would be great if the farmers could come together and take the power from the huge multiples and indeed from the meat processors like larry goodman or the creameries like Avonmore/Kerry Group.
    But you are missing what posters are saying that it is not that easy.
    Between the level of investment necessary, the level of business know how required (most farmers are not budding Sean Quinns or Denis Brosnans) and with the level of beuracracy ionvolved today it becomes very hard.
    All the while you are competing against the big guys who have collosal economies of scale, large contracts, brand images and contracts with large retail organisations.

    It can be possible to go into a niche area, but as some of us continue to tell you it is harder when you go to greater volumes.
    Maybe someday some of the little niche players will be big enough to provide markets for lots more farmers, but when they are small they can't.


    Farmers knwo they can't dictate prices, they are more aware of that than probably any other sector out there, but once profitable farming enterprises are now making a loss because the ones higher up the chain are taking a big chunk of the smaller end price.

    Something is going to have to give and it will probably be farmers leaving the business and we end up with huge farms.
    Now the free marketeers and business minded people will say so what, it is survival of the fittest and big is better.
    But is bigger better, do we wnat our food produced by factory farms, feedlots, etc.
    There will also be huge social price for this resulting in desolate countryside (although with the way some planning has been carried out I wonder :rolleyes:) with dead villages and towns.

    I am not allowed discuss …



  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    jmayo wrote: »
    It would be great if the farmers could come together and take the power from the huge multiples and indeed from the meat processors like larry goodman or the creameries like Avonmore/Kerry Group.
    But you are missing what posters are saying that it is not that easy.
    Between the level of investment necessary, the level of business know how required (most farmers are not budding Sean Quinns or Denis Brosnans) and with the level of beuracracy ionvolved today it becomes very hard.
    All the while you are competing against the big guys who have collosal economies of scale, large contracts, brand images and contracts with large retail organisations.

    It can be possible to go into a niche area, but as some of us continue to tell you it is harder when you go to greater volumes.
    Maybe someday some of the little niche players will be big enough to provide markets for lots more farmers, but when they are small they can't.


    Farmers knwo they can't dictate prices, they are more aware of that than probably any other sector out there, but once profitable farming enterprises are now making a loss because the ones higher up the chain are taking a big chunk of the smaller end price.

    Something is going to have to give and it will probably be farmers leaving the business and we end up with huge farms.
    Now the free marketeers and business minded people will say so what, it is survival of the fittest and big is better.
    But is bigger better, do we wnat our food produced by factory farms, feedlots, etc.
    There will also be huge social price for this resulting in desolate countryside (although with the way some planning has been carried out I wonder :rolleyes:) with dead villages and towns.


    we already subsidize the farmers thru EU and all sorts of other welfare schemes

    now they are taking the piss altogether :(

    price controls will hurt consumers and the farmers themselves eventually, im sorry that you can not see that

    .


  • Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    on further thought

    what the farmers are doing now is not to different from what the public sector unions are doing now

    shafting the general population for the gain of their own group members

    except in both cases that would comeback to bite them in the arse


  • Registered Users Posts: 59,625 ✭✭✭✭namenotavailablE


    Price controls will hurt consumers and the farmers themselves

    It's a delicate balance between price controls and maintaining a viable industry. There has to be some facility to allow producers- whether farmers, manufacturers, banks (yes, I know, I know), builders (again, I know, I know) or service providers generally - to make a return on investment.

    If large multiples can effectively control prices by ruthlessly dictating pricing/ delivery/ credit terms to suppliers then this is a form of price 'control' (price setting). It's vaguely analogous to allowing banks to become 'too big to fail' in the sense that their behaviour tends to become focussed on the short term profit rather than the longer term consequences of their actions. The multiples will squeeze prices in order that they can sell more / increase profits/ gain market share in the short term but in the longer term will leave the agri-industry in a desolate state. Ultimately, consumers will likely have a reduced choice as producers close up shop.

    Clearly, if producers cannot make a profit after their best efforts to extract efficiencies /streamline their processes/ find new markets then they have no option but to cease production. At a national level, it is a strategic asset to be able to produce enough food to feed ourselves- if farmers are being forced off the land it will ultimately damage this capacity to feed ourselves.


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  • Moderators, Science, Health & Environment Moderators Posts: 6,376 Mod ✭✭✭✭Macha


    ei.sdraob wrote: »
    1. the farmers can come together and take that "power" from the likes of tesco as per my suggestion
    Did you miss the numerous posts explaining the difficulties with this suggestion?
    ei.sdraob wrote: »
    2. consumers dictate prices not producers (and yes Tesco is a customer of the farmers), you seem to have a huge problem understanding this basic foundation of commerce and hence why you are tripping over yourself, the alternative to consumer choice is a fixed market cartel, and i can tell you those always end badly for everyone involved
    Consumer are not the only ones that dictate prices, and if you think that this is a 'basic foundation of commerce' I'd like to know where you did your studies. Prices are also dictated by factors like inputs and the costs of production, which is not happening at the moment in Irish agriculture.
    ei.sdraob wrote: »
    the farmers can either use the system to their advantage or they can moan about how its "unfair" and expect the state to put up protectionist measures that would harm the consumer and then eventually the farmers themselves
    You're right that this discussion is pointless if you continue to ignore points that other posters make. You simply keep saying the farmers either take over the food distribution and retail elements of the food market (and I though cartels were supposed to be bad?) or we're all doomed to..well, I don't know what exactly - people actually covering the cost of production of their food? Whatever next?


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