Supermarket milk wars: a lot of pain for no gain

 

Aussie Farmers

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I am reblogging another another wonderful insight from the milk pit (coal face) of the Australian  dairy industry from Milk Maid Marian (see here )

Its this comment that particularly resonates with me

“Taking the emotional side of the issue into account first, there is no doubt that the discounting of fresh white milk has devalued the perception of product value in the eyes of farmers. To see milk selling for less than the price of something like bottled water has an impact on farmer sentiment that the economic data doesn’t capture. It suggests to farmers that all the hard work, capital investment, and management skill that goes into producing the product is not properly valued, by those selling it, or the wider community buying it.”

A further cynical insight from me

Sell your soul to the devil

I just nod my head with disbelief at this notion by milk processors that sell their souls to Coles and Woolworths  that the duopoly will do the right thing by them and farmers

Dairy Australia also understands that there may be an advantage for processors in attaining additional supermarket shelf space for their company branded products in both milk and other dairy categories by supplying private label milk (i.e. a non-financial return).

The upcoming ACCC dairy market study is likely to bring some of this information to light.. ”.

I look forward to what ACCC unearth. From what I have seen processors who find themselves locked in these no win contacts are treated like fools

Just take my region. Parmalat package and sell their NSW dairy farmer suppliers milk to Woolworths which they sell as Woolworths Select. Parmalat’s brand is Pauls. Try going into a Woolworths in my region and buying Pauls milk. If its there then is invariably almost out of date.

and the big question are people buying more milk because its cheaper than water. ???

“What Dairy Australia can demonstrate though is that per capita consumption of fresh white milk has not increased as a result of the $1 litre pricing policy introduced in 2011.”

After five years of crippling farmer pain due to $1 milk the statistics show consumers arent even buying more white milk

Gary Helou

and yes the only person left smiling  in this photo is the man on the right (John Durkin) and yes he works for Coles. The other two Garry and Tony havent faired so well.

  

The Milk Maid Marian

Milk sales 20160825
Thank you. The most heartening thing about the Australian dairy crisis is the support ordinary Australians have shown for farmers. The remarkable graph above proves what we’ve all seen on supermarket shelves. Real people taking real action.

This graph showing the split between home brand and brand name milk sales comes from Dairy Australia analyst John Droppert, who has answered a handful of questions from Milk Maid Marian with some very telling numbers. Thank you, John! I have added quotes from John in italics. Because they were so fulsome, I have selected some highlights for you.

Is supermarket milk really important to dairy farmers?
To answer this question I asked Dairy Australia how much of the milk that leaves the farm gate ends up in cartons on supermarket shelves. Well, (with apologies to Lara Bingle) that depends on where the bloody hell you are. In Queensland, just about every…

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