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We could all see this coming . . ., Dairy Farmers
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19/01/2013, 12:05 PM
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Posts: 2,404
Joined: 11-July 03
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Advanced Member
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Didn't the supermarkets increase the prices they paid for milk before they reduced milk to $1/l? https://www.coles.com.au/Portals/0/content/...20v2%202011.pdfSo does this sad state of affairs reflect: 1. an inefficient industry that needs to consolidate to survive? 2. the fault of the milk processors? 3. 50% of Australian milk is exported. Lower prices may be a consequence of a rising $AU, not supermarket price wars. If an $AU was previously worth 6 Chinese Yuan and now it is worth 9 Chinese Yuan, and the contract for milk supply is written in Chinese Yuan, the Australian company selling the milk is getting a third less in Australian dollar terms, but the Chinese company is paying the same amount. Even if the contract has been renewed recently, prices aren't so elastic that you can just increase by a third and expect the same demand for your product. All Australian export companies are facing the same problems.
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19/01/2013, 12:08 PM
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Posts: 308
Joined: 9-January 10
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flakyfish
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Wow, that's massively worrying.
I used to occasionally buy the cheap milk, but after i read a thread on here a few months back, i switched to buying only name brand milk.
I also switched to buying Aussie-owned dairy products wherever possible, so switched to devondale cheese and butter instead of western star and mainland, liddels lactose free milk instead of Aldi, etc.
Sadly, neither coles nor woolies in my area sell fresh aussie owned milk, so we buy Dairy Farmers and A2 milk.
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19/01/2013, 12:26 PM
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Posts: 465
Joined: 1-February 09
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Member
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QUOTE (Sif @ 19/01/2013, 12:19 PM)  It's not a choice for everyone. For us the difference is either $18 a fortnight, or $45 a fortnight - in our house that is a huge amount of money... We have to buy the cheapest of everything because otherwise we can't keep our fortnight shopping for a family of six to between $3-350 (including everything)... Sif, nobody's asking you to send your family bankrupt, just be aware that these milk prices are having serious longterm effects on dairy families.
This post has been edited by StarandMoon: 19/01/2013, 12:27 PM
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19/01/2013, 12:29 PM
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Posts: 3,788
Joined: 10-May 12
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Advanced Member
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QUOTE (Jane01 @ 19/01/2013, 01:05 PM)  Didn't the supermarkets increase the prices they paid for milk before they reduced milk to $1/l? https://www.coles.com.au/Portals/0/content/...20v2%202011.pdfSo does this sad state of affairs reflect: 1. an inefficient industry that needs to consolidate to survive? 2. the fault of the milk processors? 3. 50% of Australian milk is exported. Lower prices may be a consequence of a rising $AU, not supermarket price wars. If an $AU was previously worth 6 Chinese Yuan and now it is worth 9 Chinese Yuan, and the contract for milk supply is written in Chinese Yuan, the Australian company selling the milk is getting a third less in Australian dollar terms, but the Chinese company is paying the same amount. Even if the contract has been renewed recently, prices aren't so elastic that you can just increase by a third and expect the same demand for your product. All Australian export companies are facing the same problems. This was my understanding as well. We I do tend to buy cheap milk but I tend to buy the UHT stuff because some weeks we may go through 3liters some none so if I buy 2 and keep them in the fridge I can't taste the difference when we need it.
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