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MILK

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dragontamer
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« Reply #25 on: February 19, 2011, 03:44:03 pm »

You are missing the point that the company TOLD him what he was allowed to sell it for.  He had to sign a contract not to undermine that price.
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« Reply #26 on: February 19, 2011, 04:33:50 pm »

NZ milk prices sour shoppers
ANDREA FOX Last updated 05:00 03/02/2001

The price of a two-litre bottle of milk in Australia has been slashed to A$2 (NZ$2.58) just as Kiwi shoppers, who are paying up to $4.80, brace for another round of dairy price increases.

Any time dairy chiller prices rise, New Zealand dairy giant Fonterra, collector and controller of more than 90 per cent of the country's milk production and the world's biggest dairy exporter, blames the price it is getting for its products in international markets – if Fonterra and its farmers are doing well overseas, Kiwi shoppers pay more.

And Fonterra did particularly well on its global online auction yesterday.

The average commodity price surged 7.2 per cent, taking the average rise in international prices to more than 20 per cent since November and raising the potential for more increases at the supermarket and dairy.

Even before that auction, Fonterra Brands New Zealand, maker of brands such as Anchor Milk, was not ruling out another round of increases in March.

Strong global prices in the past six months have already pushed a branded two-litre bottle of milk up 15c and last week industry veteran and Fonterra Brands managing director Peter McClure said milk was the most expensive he could remember.

New Zealand exports 95 per cent of its nearly 15 billion litre annual milk production.

Fonterra supplies the bulk of retail milk in New Zealand, including to its only competitor of size, Goodman Fielder, marketer of the MeadowFresh brand.

But Australia, with about 22 million people, is enjoying a discounting war among its three main supermarket chains – Coles, Woolworths and Aldi – after Coles announced it was slashing its homebrand milk prices by up to 33 per cent.

About 55 per cent of milk produced in Australia goes to the domestic market.

The three supermarket chains said they would absorb the cost of the price cuts. Coles spokesman Jim Cooper said the discounting campaign was not a short-term initiative.

Spokesmen for New Zealand's two supermarket chains, Progressive Enterprises and Foodstuffs said the discounting was specific to Australia and New Zealand's retail situation was not comparable.

Australian farmers who produce retail milk year-round were paid A45c-A50c a litre for milk, Dairy Farmers of Australia said.

Their colleagues in New Zealand are understood to be paid about 57.7c a litre at the current trans-Tasman exchange rate.

Dairy industry consultant Peter Fraser said New Zealand's higher prices were because the country had only two supermarket chains and "all milk is sold by Fonterra".

Consumer NZ chief executive Sue Chetwin also noted the supermarket duopoly. She said Fonterra had a "very cosy" arrangement with its distribution chain.

Whether the price of milk was too high was not as relevant as the lack of transparency in how milk prices were set, she said.

"What happens between the farmer and the consumer is secret and that's where the problem is. We don't know whether the price is justified because they can't be justified."

Consultant Tim Morris of Coriolis said New Zealand supermarkets did not make excessive profits by global standards.

- BusinessDay

http://www.stuff.co.nz/business/farming/4611214/NZ-milk-prices-sour-shoppers



BTW Dairydale is the budget brand of Anchor (Fonterra) and Cow and Gate is Medowfresh (Goodman Feilder). That makes me wonder why both of those are cheaper at dairies, petrol stations, greengrocers etc than at the supermarket.
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« Reply #27 on: February 19, 2011, 05:54:43 pm »

You are missing the point that the company TOLD him what he was allowed to sell it for.  He had to sign a contract not to undermine that price.

Yep sure, DT .. perhaps Fonterra dont do that  Smiley

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« Reply #28 on: February 19, 2011, 07:09:25 pm »

You are missing the point that the company TOLD him what he was allowed to sell it for.  He had to sign a contract not to undermine that price.

Yep sure, DT .. perhaps Fonterra dont do that  Smiley



Yeah - bullshit.
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« Reply #29 on: February 19, 2011, 07:32:20 pm »


Another thing to consider.

Fonterra have frozen the price of their milk brand Anchor for the rest of the year.

The other milk supplier, Goodman Fielder, get supplied with milk from Fonterra which they then process and sell as Medowfresh. However, they have a long-term contract with Fonterra which states they have to pay whatever is the commodity price (which is presumably the world price). So this business of freezing the price of milk for the rest of the year could possibly be a cynical ploy by Fonterra to grab a bigger market share from their competitor, Goodman Fielder, who will still have to pay the commodity price for the milk which is supplied to them, meaning that Fonterra will be effectively undercutting them in an underhanded sort of way and may be playing a game to get rid of their only major competitor in NZ in the domestic milk market. And we all know what happens to prices in the long term when a company has a monopoly.

Something to think about.
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« Reply #30 on: February 19, 2011, 07:48:25 pm »

You are missing the point that the company TOLD him what he was allowed to sell it for.  He had to sign a contract not to undermine that price.

Yep sure, DT .. perhaps Fonterra dont do that  Smiley



Yeah - bullshit.

Bullshit, whats bullshit? Are you saying something that I am saying is bullshit?
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« Reply #31 on: February 19, 2011, 08:32:37 pm »

You are missing the point that the company TOLD him what he was allowed to sell it for.  He had to sign a contract not to undermine that price.

Yep sure, DT .. perhaps Fonterra dont do that  Smiley



Yeah - RIGHT (where is a Tui or bird jpg when you need one)
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dragontamer
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« Reply #32 on: February 19, 2011, 08:39:39 pm »

You are missing the point that the company TOLD him what he was allowed to sell it for.  He had to sign a contract not to undermine that price.

Yep sure, DT .. perhaps Fonterra dont do that  Smiley


Yeah - bullshit.

Bullshit, whats bullshit? Are you saying something that I am saying is bullshit?

I'm saying he was pissed off because that was the best deal he could get ANYWHERE and milk is a pull for his shop.  He's losing some business because milk prices don't pull customers any more.  I was there when he was on the phone to them about the light blue top and argued with them about the minimum pricing.  

He switched because of pricing only to find that the deal was no sweeter at all.
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« Reply #33 on: February 20, 2011, 07:44:20 am »

You are missing the point that the company TOLD him what he was allowed to sell it for.  He had to sign a contract not to undermine that price.

Yep sure, DT .. perhaps Fonterra dont do that  Smiley



Yeah - RIGHT (where is a Tui or bird jpg when you need one)

LOL .. so we KNOW that is what all milk companies do - we know that they tell all their outlets precisely what they must sell it for?

I dont give a toss if they do .. I would like to know this is fact for all .. not just what we would prefer to believe.  When we had our shop here in town .. having milk delivered .. we were never told what we could sell it for.
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« Reply #34 on: February 20, 2011, 08:05:42 am »

Farmers cry foul over milk price freeze

Federated Farmers is crying foul over Fonterra's decision to freeze wholesale milk prices for the rest of the year.

The dairy giant made the decision after a week of public scrutiny at how much the price of milk is hitting consumers in the pocket.

But Federated Farmers dairy spokesperson Lachlan McKenzie says the news that farmer-shareholders would foot the bill came as a surprise to him.

"We seem to now have a desire for a small sector of 10,000 people to subsidise food for the other 4.5 million people" he told Newstalk ZB.
Mr McKenzie says some serious questions need to be asked as to why the supermarkets haven't had the same pressure.

http://nz.news.yahoo.com/a/-/top-stories/8870964/farmers-cry-foul-over-milk-price-freeze/

well of course the Farmers will cry foul over this as they stand to loose money in their annual dividends ...

guess there wont be many buying BMW's taking overseas holidays etc etc ...

oh dear so sad ....... NOT !!


You're right, how dare they complain, honestly its not like they have to spend money on food, fuel, farm and equipment maintance, animal  medicines/ drenches, weed sprays, school fees, vet bills, stock feeds, fonterra shares, fertiliser, power bills, phone bills and fonterra penalities... etc etc and if they did, well we all know it wouldn't be expencesive would it!

Really what we should do is take all their farms of them and give the farms to those chinese chappies.... that'll learn the complaining buggers... no better still fonterra could pay the farmers 2c per tanker of milk of their farm. Eitrher way the rural towns etc will just absolutely thrieve with out our whinging NZ farms!
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dragontamer
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« Reply #35 on: February 20, 2011, 08:41:22 am »

You are missing the point that the company TOLD him what he was allowed to sell it for.  He had to sign a contract not to undermine that price.

Yep sure, DT .. perhaps Fonterra dont do that  Smiley



Yeah - RIGHT (where is a Tui or bird jpg when you need one)

LOL .. so we KNOW that is what all milk companies do - we know that they tell all their outlets precisely what they must sell it for?

I dont give a toss if they do .. I would like to know this is fact for all .. not just what we would prefer to believe.  When we had our shop here in town .. having milk delivered .. we were never told what we could sell it for.

How long ago were you running that shop?  I don't think Thak had that problem approximately 3 years ago when he last switched providers (he certainly didn't bitch about it), but the provider he had (small local business) got bought out and then disappeared about August last year, their milk was considerably cheaper than any of the main brands, or their unbranded products (by about 50 cents a litre). 
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« Reply #36 on: February 20, 2011, 08:53:58 am »

I just think its would be interesting to know that a supplier is doing that ..

There is a recommended retail price on everything .. but it is only recommended .. not a set price.

No doubt your dairy owner could mention it to the consumers people ..

Next time Im at our local dairy I will ask them how they come to their costings ..

I bought a loaf of bread and 2 litres of milk yesterday .. cos $9.80!! 
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dragontamer
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« Reply #37 on: February 20, 2011, 09:14:35 am »

Shite - Which one had the gold ingot in it?

I never thought to query the rrp vs set price.  I know he was pissed.  He's still about 20 cents cheaper than the same product in Pac n Save.  I don't even look at the milk in Countdown.

Fonterra have not long opened a huge factory in Culverden and are currently building one in Darfield.  Massive plants with huge amounts of security. The trucks don't even go to the actual plant at the one at Culverden.  There is a station where they plug in and it is piped about 500 metres to the plant.  The costs must be astronomical. 
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« Reply #38 on: February 20, 2011, 07:12:19 pm »

Farmers cry foul over milk price freeze

Federated Farmers is crying foul over Fonterra's decision to freeze wholesale milk prices for the rest of the year.

The dairy giant made the decision after a week of public scrutiny at how much the price of milk is hitting consumers in the pocket.

But Federated Farmers dairy spokesperson Lachlan McKenzie says the news that farmer-shareholders would foot the bill came as a surprise to him.

"We seem to now have a desire for a small sector of 10,000 people to subsidise food for the other 4.5 million people" he told Newstalk ZB.
Mr McKenzie says some serious questions need to be asked as to why the supermarkets haven't had the same pressure.

http://nz.news.yahoo.com/a/-/top-stories/8870964/farmers-cry-foul-over-milk-price-freeze/

well of course the Farmers will cry foul over this as they stand to loose money in their annual dividends ...

guess there wont be many buying BMW's taking overseas holidays etc etc ...

oh dear so sad ....... NOT !!


You're right, how dare they complain, honestly its not like they have to spend money on food, fuel, farm and equipment maintance, animal  medicines/ drenches, weed sprays, school fees, vet bills, stock feeds, fonterra shares, fertiliser, power bills, phone bills and fonterra penalities... etc etc and if they did, well we all know it wouldn't be expencesive would it!

Really what we should do is take all their farms of them and give the farms to those chinese chappies.... that'll learn the complaining buggers... no better still fonterra could pay the farmers 2c per tanker of milk of their farm. Eitrher way the rural towns etc will just absolutely thrieve with out our whinging NZ farms!

It is not the farmer's cut we are complaining about, it is the size of the mark ups after it has left the farm that are the problem.
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« Reply #39 on: February 20, 2011, 08:15:55 pm »


Did you know that 25% of the entire commercial milk production worldwide is now processed by Fonterra?

I only found out that particular little piece of information recently.

It was actually an American dairy farmer (from Pennsylvania) who told me that. He and his wife were passengers off a cruise ship berthed at Wellington who did a day trip to Wairarapa and he was chatting to me on the railway station platform at Masterton before the return trip.

I went and looked a few things up online and discovered to my surprise that he is actually correct!
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« Reply #40 on: February 21, 2011, 08:15:34 am »

Farmers cry foul over milk price freeze

Federated Farmers is crying foul over Fonterra's decision to freeze wholesale milk prices for the rest of the year.

The dairy giant made the decision after a week of public scrutiny at how much the price of milk is hitting consumers in the pocket.

But Federated Farmers dairy spokesperson Lachlan McKenzie says the news that farmer-shareholders would foot the bill came as a surprise to him.

"We seem to now have a desire for a small sector of 10,000 people to subsidise food for the other 4.5 million people" he told Newstalk ZB.
Mr McKenzie says some serious questions need to be asked as to why the supermarkets haven't had the same pressure.

http://nz.news.yahoo.com/a/-/top-stories/8870964/farmers-cry-foul-over-milk-price-freeze/

well of course the Farmers will cry foul over this as they stand to loose money in their annual dividends ...

guess there wont be many buying BMW's taking overseas holidays etc etc ...

oh dear so sad ....... NOT !!


You're right, how dare they complain, honestly its not like they have to spend money on food, fuel, farm and equipment maintance, animal  medicines/ drenches, weed sprays, school fees, vet bills, stock feeds, fonterra shares, fertiliser, power bills, phone bills and fonterra penalities... etc etc and if they did, well we all know it wouldn't be expencesive would it!

Really what we should do is take all their farms of them and give the farms to those chinese chappies.... that'll learn the complaining buggers... no better still fonterra could pay the farmers 2c per tanker of milk of their farm. Eitrher way the rural towns etc will just absolutely thrieve with out our whinging NZ farms!

It is not the farmer's cut we are complaining about, it is the size of the mark ups after it has left the farm that are the problem.

NF certainly was and I seriously suspect he's never been near a farm in his life as its that sort of person that makes uneducated comments about farmers.

I get a bit sick of non- rural people moaning about how rich they think farmers are; they forget that farmers have cost (sometimes greater than non rural people) too and that they the consumer have a bunch of middlemen between them and the producer who are getting their cut too, it may cost you $15 for 1 leg of lamb at the supermarket, chances are the farmer only got $30 for the whole lamb and a percentage of that would go on commission and carttage.
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« Reply #41 on: February 21, 2011, 09:04:13 am »


NF certainly was and I seriously suspect he's never been near a farm in his life as its that sort of person that makes uneducated comments about farmers.

I get a bit sick of non- rural people moaning about how rich they think farmers are; they forget that farmers have cost (sometimes greater than non rural people) too and that they the consumer have a bunch of middlemen between them and the producer who are getting their cut too, it may cost you $15 for 1 leg of lamb at the supermarket, chances are the farmer only got $30 for the whole lamb and a percentage of that would go on commission and carttage.

Agreed.  But it's across the board.  Recently we looked at some beef at Countdown, and when calculating out the price that whole beast was worth around $24,000.  The farmer would have got more or less 3% of that.
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« Reply #42 on: February 21, 2011, 12:45:44 pm »


NF certainly was and I seriously suspect he's never been near a farm in his life as its that sort of person that makes uneducated comments about farmers.

I get a bit sick of non- rural people moaning about how rich they think farmers are; they forget that farmers have cost (sometimes greater than non rural people) too and that they the consumer have a bunch of middlemen between them and the producer who are getting their cut too, it may cost you $15 for 1 leg of lamb at the supermarket, chances are the farmer only got $30 for the whole lamb and a percentage of that would go on commission and carttage.

Agreed.  But it's across the board.  Recently we looked at some beef at Countdown, and when calculating out the price that whole beast was worth around $24,000.  The farmer would have got more or less 3% of that.

Factor in the cost of carttage of the stock, sales commission, costs of raise each beast to age of slaughter....
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« Reply #43 on: February 21, 2011, 01:17:46 pm »

Quote
I get a bit sick of non- rural people moaning about how rich they think farmers are; they forget that farmers have cost (sometimes greater than non rural people) too and that they the consumer have a bunch of middlemen between them and the producer who are getting their cut too, it may cost you $15 for 1 leg of lamb at the supermarket, chances are the farmer only got $30 for the whole lamb and a percentage of that would go on commission and carttage.

err....we are paying a lot more than $15 for a leg of lamb - more like $13.99/kg if we are lucky $16.99/kg is more likely. This week 2kg leg of lamb is $38.99 and neck chops are on special for $11.99/kg.

I have worked out how I and feed my lot well on a reduced amout of meat but I haven't figured out how to continue doing so if I have to cut dairy as well.
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« Reply #44 on: February 21, 2011, 01:25:40 pm »


As I've already posted...


The current Nats government have the power to knock 15% off the price of ALL basic foodstuffs.

I betcha they won't though....they'll continue to DEMAND their cut! 
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« Reply #45 on: February 21, 2011, 03:30:55 pm »


As I've already posted...


The current Nats government have the power to knock 15% off the price of ALL basic foodstuffs.

I betcha they won't though....they'll continue to DEMAND their cut! 

I am surprised that you don't anticipate an imminent world wide announcement of a massive drop in the commodity price of milk and milk products.

With our supermarket milk price frozen till the end of the year we might have thankfully accepted a bit more than we understood at the time.  Seems to me there's a danger that the freeze could apply even if there is a sudden commodity price thaw?

Take a wee look at this and you'll guess why Fonterror acted so promptly to the recent suggestion of price review by David Carter:

Govt bans export of milk powder, casein to rein in prices
Press Trust of India
February 18, 2011 (New Delhi)

Read more at: http://profit.ndtv.com/news/show/govt-bans-export-of-milk-powder-casein-to-rein-in-prices-141623?pfrom=home-Business&cp



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« Reply #46 on: February 21, 2011, 04:37:06 pm »

There is only a small amount of milk used locally, that is in NZ.

The cost of food can be dropped immediately by 15%  -  after doing our top up shopping today in a town we dont usually shop in .. Im starting to wonder how any of us will survive  Cheesy
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« Reply #47 on: February 21, 2011, 06:11:14 pm »

Quote
I get a bit sick of non- rural people moaning about how rich they think farmers are; they forget that farmers have cost (sometimes greater than non rural people) too and that they the consumer have a bunch of middlemen between them and the producer who are getting their cut too, it may cost you $15 for 1 leg of lamb at the supermarket, chances are the farmer only got $30 for the whole lamb and a percentage of that would go on commission and carttage.

err....we are paying a lot more than $15 for a leg of lamb - more like $13.99/kg if we are lucky $16.99/kg is more likely. This week 2kg leg of lamb is $38.99 and neck chops are on special for $11.99/kg.

I have worked out how I and feed my lot well on a reduced amout of meat but I haven't figured out how to continue doing so if I have to cut dairy as well.

I realise that SP, I was only using that price as an example, it still doesn't get away from the fact that if the farmer only gets paid $10 for each lamb (for eg) or the like doesn't mean the price in the supermarkets drop to close that price and tho what the farmers get looks good on paper, they have lot of over heads, often more than people who aren't farmers.
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« Reply #48 on: February 22, 2011, 06:47:28 am »

OK .. so some dude on Campbell Live last night said the supermarkets pay tween $1.22 & $1.75 a litre .. but the reporter apparently thought he was giving the price for 2 litres .. the supermarket guy said he wouldnt be more specific cos the price was commercially sensitive .. Progressive get it at a differing price than they do ..

Methinks there should be a deeper look into this ..
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« Reply #49 on: February 22, 2011, 08:27:16 pm »


Wake up suckers....Fonterra didn't freeze the price of milk before they pushed the price through the roof, but after they ramped up the price.

The supermarkets have pulled exactly the same stunt as Fonterra too! 


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