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Farm Business
Agricultural Matters
Andrew Blenkiron
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<blockquote data-quote="AIMS" data-source="post: 7479499" data-attributes="member: 157044"><p>Well it sort of does deliver a premium, just not to the primary producer, the farmer. </p><p></p><p>All the costs of inspection and license fees along the supply chain get passed on from link to link thereby pushing up the price of the product. So, in markets where there are few links, namely processing for the supermarkets the price for a Red Tractor piece of meat or chicken is lower then it would be for say a restaurant where the product has passed through several links, all of whom have had to pay for inspection and licenses. In a way, rather than delivering a premium, it sort of delivers food price inflation.</p></blockquote><p></p>
[QUOTE="AIMS, post: 7479499, member: 157044"] Well it sort of does deliver a premium, just not to the primary producer, the farmer. All the costs of inspection and license fees along the supply chain get passed on from link to link thereby pushing up the price of the product. So, in markets where there are few links, namely processing for the supermarkets the price for a Red Tractor piece of meat or chicken is lower then it would be for say a restaurant where the product has passed through several links, all of whom have had to pay for inspection and licenses. In a way, rather than delivering a premium, it sort of delivers food price inflation. [/QUOTE]
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Farm Business
Agricultural Matters
Andrew Blenkiron
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