Milk

[Fizzie]

The real winners, and mainly since Internet and forums have started are popcorn supplies. Man they must be rolling in it. I do like mine buttered

Well, it's good to see that you're doing your bit, because, after all, butter is made from milk ...










It's all right, I'm leaving now   

[jayjay]

I'm pretty sure this is because they are the main exporters and therefore exposed to international price fluctuations. I think (not sure) that a lot of domestic supply prices would be set in supply contracts and therefore in the short term at least not be affected.

Agree, but I would think that once the farmers supply contracts expire with those companies (Lion & Norco are 2 that come to mind), it will be a whole different ball game....... at the moment those dairy farmers aren't affected, but methinks it won't stay that way!

[Bird]

From LinkedIn

Safeway in Sunbury, Vic tonight (14days ago now)... The fridge is almost empty of branded milk, and take a look at the photo.. There is 3 pallets of Safeway brand milk in behind the shelves. They are literally drowning in their own branded cheap milk!!

[tryagain]

Safeway in Sunbury, Vic tonight (14days ago now)... The fridge is almost empty of branded milk, and take a look at the photo.. There is 3 pallets of Safeway brand milk in behind the shelves. They are literally drowning in their own branded cheap milk!!

If only the farmers were getting something more than just good sentiment it would be a lot better. I did have the thought that someone should start up a crowd funding page where people could buy the cheap milk and the donate the difference so that the farmers could actually get it.

[oldmate]

If only the farmers were getting something more than just good sentiment it would be a lot better. I did have the thought that someone should start up a crowd funding page where people could buy the cheap milk and the donate the difference so that the farmers could actually get it.

Not directly to he farmers short term but a good step in the direction.
https://www.gofundme.com/drp3sgkc/

We buy 4real milk or malenys dairy milk. Not that  we but much of it a week

[scrapsD40]

We buy 4real milk or malenys dairy milk. Not that  we but much of it a week

make milk shakes and sell them on your front lawn.

[oldmate]

make milk shakes and sell them on your front lawn.

You sir are a genius. Can you supply me with some good Chinese strawberry syrup?

[scrapsD40]

You sir are a genius. Can you supply me with some good Chinese strawberry syrup?

No, but I know some good music you can play to attract customers

[prodigyrf]

Why on earth would you want to pay all dairy farmers more for milk and encourage the marginal ones to keep on supplying when there's an oversupply? Much better for the most marginal farmers to decide to quit and ultimately leave higher returns for those supplying the right quantity demanded. Misplaced charity here is a lot like Gummint drought relief encouraging marginal farmers to stay on and keep producing, depressing prices and at the same time propping up agricultural land prices for all farmers.
Hands up those who think we should also prop up the likes of Compass Airlines, Dick Smith, Masters, etc?

[tryagain]

Why on earth would you want to pay all dairy farmers more for milk and encourage the marginal ones to keep on supplying when there's an oversupply? Much better for the most marginal farmers to decide to quit and ultimately leave higher returns for those supplying the right quantity demanded. Misplaced charity here is a lot like Gummint drought relief encouraging marginal farmers to stay on and keep producing, depressing prices and at the same time propping up agricultural land prices for all farmers.
Hands up those who think we should also prop up the likes of Compass Airlines, Dick Smith, Masters, etc?

There is a part of me that agree's with you, I think there are sometimes some extenuating circumstances though and think there are some at play here, like the really low price some farmers were going to be getting for milk was going to go back up in two months and geopolitical causes that could change in the future. Inevitably though the less efficient farms are going to have to either get a whole lot efficient to be more competitive on the global stage, find additional funding streams or bow out. Deciding to quit couldn't be an easy decision for multi-generational dairy farmers who have known nothing else and I think that's part of the reason people feel for them and want to help them out, which brings me back to my original point of buying branded milk not doing anything especially in the short term.

[Nomad]

All we are really doing is shifting the profit margin from company A to company B. I reckon that there is a fair chance that even though its blatantly obvious that MG and Fonterra had claw back provisions in their contracts so probably do Woolies and Coles so whilst their product is not shifting those farmers will be hurt as well, which in effect balances only a very small section of the market given the export quantities involved.

Like any business generally bigger means better efficiency and as long as the structure is correct better bottom lines. As Shitty as that is to say.

[glenm64]

Still hasnt answered why bottled water (which is basically free) costs more than milk which has to be "grown" and then processed.
Only can think of 2 reasons.
One is the world free market price of water is higher than milk
Or the other is people are getting screwed.

Cheers Glen

[prodigyrf]

Still hasnt answered why bottled water (which is basically free) costs more than milk which has to be "grown" and then processed.
Only can think of 2 reasons.
One is the world free market price of water is higher than milk
Or the other is people are getting screwed.

Cheers Glen

Two sides to the market coin. Supply and demand and in that sense diamonds, gold and coal are all lying around 'free' as you call it and then there's the cost of my haircuts vs the missus and they tell me that's all to do with particular consumer taste plus utility producing overall market demand. The problem is there is normal, utilitarian, rational earthling demand and then there's the other end of the spectrum with the intergalactic space traveller taste variety. The latter prefer bottled water to tap water and milk too but they do have certain redeeming features in constant demand you'll note.

[glenm64]

Two sides to the market coin. Supply and demand and in that sense diamonds, gold and coal are all lying around 'free' as you call it and then there's the cost of my haircuts vs the missus and they tell me that's all to do with particular consumer taste plus utility producing overall market demand. The problem is there is normal, utilitarian, rational earthling demand and then there's the other end of the spectrum with the intergalactic space traveller taste variety. The latter prefer bottled water to tap water and milk too but they do have certain redeeming features in constant demand you'll note.

Translates to " 2 sides of the coin are one is getting screwed cause they can and the other is one gouging profits cause they can."


Cheers Glen

[prodigyrf]

What is it with the space travellers and milk- 
http://health.thewest.com.au/news/2907/health-alarm-as-women-avoid-dairy
Reminds them of sore tits with the nippers perhaps? If that's the case can we earthlings just have good old fashioned M for milk back so we don't get completely bewildered standing in front of the super fridge?

[tk421]

interesting reading for anyone who still cares as social media faux outrage has died down: (and no its not $1milk)

http://www.smh.com.au/business/the-economy/dairy-crisis-explained-its-more-to-do-with-vladimir-putin-than-1-milk-20160630-gpvegb.html

[prodigyrf]

interesting reading for anyone who still cares as social media faux outrage has died down: (and no its not $1milk)

Yep it's always supply and demand in world markets for farmers, but then the pollies have to kneejerk with sanctions or live cattle bans and then they have the nerve to rollout relief loans and subsidies and pretend they care with our taxes. Propping up those in trouble never helps the most productive farms and their farmer livelihoods, but simply prolongs the agony of low prices for them too. Economic sanctions and bans are just as useless but you can't reason with the overemotional tosspots.

[Foo]

Seriously, have any of you real knowledge of the margins that farmers have to operate on?? 

Go and work back, how much a dairy farmer is working for, on an hourly basis. Be forked if I would be busting my arse for that wage. I dealt with them for many years and it's not all strawberries and cream and if you think the cheap chit milk is a tasty as real milk, then you really don't have any bloody idea.  Do you honestly think that the likes of Coles and Woolworths give a ratsarse about the real cost of production? No, they would sooner bring milk from overseas at a much cheaper cost, from countries that require people to work for two bags of rice a week. 

Same as small crops farmers, they get the hell screwed out of them. 

Foo

[Bird]

Dozens of Gippsland dairy workers have been locked out indefinitely by milk producer Parmalat, in the latest aggressive pay dispute to hit Victoria.

At 6am on Tuesday, workers who arrived at the gates of the Parmalat-owned Longwarry Food Park, east of Melbourne, were met with news of the indefinite lockout and closure of the site.


The National Union of Workers said the Longwarry workforce was among the lowest-paid in the dairy industry, and staff had been calling for improved conditions in their pay deal to bring them in line with other Parmalat sites statewide.

Read more: http://www.theage.com.au/business/workplace-relations/parmalat-locks-out-dairy-workers-over-pay-dispute-20160705-gpyrcp.html

[Pete79]

Very refreshing to read such a mostly levelheaded discussion on this topic.
I read a lot of Coles and Woolies, but not one mention of Aldi.

Can any of the 'in the know' people out there shed some light on their suppliers (local or not) and what part they play in this evolving predicament?

I've tried my best Google-foo, but so far real answers on the Aldi milk suppliers are hard to find.

[DrewXT]

Aldi dairy products are supplied mostly by Fonterra

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[Cruiser 105Tvan]

If you want more info:

https://www.choice.com.au/food-and-drink/dairy/milk/buying-guides/milk

Goes some way to explaining.
Also says that the small amount of milk we purchase at the Supermarket, in the overall scheme of things, won't make much difference.
It might make the purchaser feel a bit better, but won't change the result much.

I'm just the messenger ok.

[prodigyrf]

And whenever you try and prop up markets it's the usual bunfight between winners and losers-
http://www.weeklytimesnow.com.au/news/opinion/victorian-dairy-industry-leaders-shunning-the-vff-farmers-fund-brand/news-story/4d7a27dec3a258686b5a9e763f15a8f5

[jclures]

And whenever you try and prop up markets it's the usual bunfight between winners and losers-
http://www.weeklytimesnow.com.au/news/opinion/victorian-dairy-industry-leaders-shunning-the-vff-farmers-fund-brand/news-story/4d7a27dec3a258686b5a9e763f15a8f5

This is the bit that everyone misses.

Quote from the article.


4 per cent of what is in their vats goes into the fresh white milk that sits on supermarket shelves,

The whole debate is just bull.

[prodigyrf]

Yep a lot of our commodities are dependent on international demand-
http://www.msn.com/en-au/money/company-news/bellamys-faces-class-action-lawsuit-after-dollar500-million-share-plunge/ar-AAlxz1U?

No shareholder was complaining when their shares in Bellamys were going up rather spectacularly while those wicked Asian mums were taking the bottles out of our babies mouths 

Methinks the dairy farmers supplying Bellamys might like a few of those wicked Asian mums back now