Farmer Keith
Member
- Location
- North Cumbria
I realise what I say is easier said than done!Time will tell, at the moment it’s hard enough growing grass!
I realise what I say is easier said than done!Time will tell, at the moment it’s hard enough growing grass!
if milk is 60p ex-farm, then retailing at 85p, someone is losing money.Anyone else seen ollyblogs post about polish farmers being paid 60p a litre and retailing in shops at 85p. Is the middle just taking all the cream here?
if milk is 60p ex-farm, then retailing at 85p, someone is losing mon
That gap is actually more than Tesco as full fat 4 pints (2.272L) at ÂŁ1.45 works out at 63.82ppl and Tesco pay 42.86 giving a gap of 20.96ppl for processing, delivery etc compared to 25ppl quoted. However every other option Tesco sell will produce a higher margin eg smaller bottles, longer shelf life, fat reduced (fat available for other products etc). Certainly suggests 4 pint bottle is a loss leader!if milk is 60p ex-farm, then retailing at 85p, someone is losing money.
Public are used to "cheap milk".That gap is actually more than Tesco as full fat 4 pints (2.272L) at ÂŁ1.45 works out at 63.82ppl and Tesco pay 42.86 giving a gap of 20.96ppl for processing, delivery etc compared to 25ppl quoted. However every other option Tesco sell will produce a higher margin eg smaller bottles, longer shelf life, fat reduced (fat available for other products etc). Certainly suggests 4 pint bottle is a loss leader!
not a straight comparison. Milk in Tesco will have had the cream skimmed off and sold into more lucrative marketsThat gap is actually more than Tesco as full fat 4 pints (2.272L) at ÂŁ1.45 works out at 63.82ppl and Tesco pay 42.86 giving a gap of 20.96ppl for processing, delivery etc compared to 25ppl quoted. However every other option Tesco sell will produce a higher margin eg smaller bottles, longer shelf life, fat reduced (fat available for other products etc). Certainly suggests 4 pint bottle is a loss leader!
Exactly. Worries me that our next potential BoD in Arla doesn’t understand the basics of the liquid market.not a straight comparison. Milk in Tesco will have had the cream skimmed off and sold into more lucrative markets
I think the quote is being taken out of context. There was a post about polish farmgate price and supermarket price. Then a comparison was made with the UK. I expect in both cases the cream was being skimmed off.Exactly. Worries me that our next potential BoD in Arla doesn’t understand the basics of the liquid market.
Surely that’s on a need to know basis! Certainly not for consumption by potentially a supermarket snooper!A slide a while back from arla showed a ridiculous quantity of 4 pint bottles had to be sold to make the same margin as one pack of lurpak butter
Did you read my post? I clearly said my comparison was “full fat 4 pints” (yes, if you want to pedantic then it can be argued that if standardised to 3.8% there maybe a small amount of extra income available from cream, which would amount to 2.5ppl if the raw milk was 4.3% fat at current cream price). I then went on to mention very clearly:Exactly. Worries me that our next potential BoD in Arla doesn’t understand the basics of the liquid market.
However every other option Tesco sell will produce a higher margin eg smaller bottles, longer shelf life, fat reduced (fat available for other products etc).
Full fat milk in UK is standardised at 3.7%.Did you read my post? I clearly said my comparison was “full fat 4 pints” (yes, if you want to pedantic then it can be argued that if standardised to 3.8% there maybe a small amount of extra income available from cream, which would amount to 2.5ppl if the raw milk was 4.3% fat at current cream price). I then went on to mention very clearly:
I apologise if “fat available for other products” was not understood to mean “Tesco will skim the cream off and sell it into more lucrative markets” but it was certainly what I meant and I thought it was pretty clear.
Since when ?Full fat milk in UK is standardised at 3.7%.
So trueEvery days a school day.
I always understood the target at the dairy was 3.8, to make sure it definitely hits 3.7 but maybe I am out of date.Full fat milk in UK is standardised at 3.7%.