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Are Contractors rates having to go up.
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<blockquote data-quote="som farmer" data-source="post: 7795387" data-attributes="member: 86168"><p>pretty well the whole ag industry is run on a shoestring, completely controlled by what the big super/mkts are prepared to pay, even for what they don't buy, their price sets the whole. Those that run the s/mkts, are extremely good business men, they don't give a ###### about anything other than their profit, they are completely ruthless.</p><p> All my farming life, it's been, not paid enough, but product is still produced. If the boot was on the other foot, and your suppliers kept moaning we need more money, but you can still buy all you need, without a price increase, what would you do ? It is only when short, does the price increase. </p><p> There used to be butter mountains, wine lakes, etc, 1,000,000's of tons of all ag produce, all held in intervention, set aside, quotas all came in to reduce the surplus. Well that surplus has gone, intervention is still there, for emergencies, but no longer is a surplus produced. Our milk prices are pretty near set, by the fronterra auctions, which trade just 5% of global dairy supplies, and all we get are accusations of destroying the planet, and given mega amounts in subsidies.</p><p> Contracting as a profession, must be hard, just as with farmers, imput prices are on a speedy upward surge, but what we sell, is not. You only have to go to an agshow, and see the mass of equipment, assistance, building, and drug companies present, start looking at them as parasites, because, they all rely on us, for their living, without us, the dole !</p><p> Much of the above, has been supported, by the 'just in time' system, that, l suspect, is nearly defunct. But it is important to realise the effect that will have, it will mean virtually every business will have to hold more stock, an expense that was removed. Who will pay for that stock ? You can be certain everyone will try and pass it down the line, in food, that's us. I am not sure that our industry can withstand higher imput costs, without rising prices, the trouble is, we are the bottom of the chain, and we will be targeted so all above us in that chain, try and pass those extra costs down, to us.</p><p> To be very fair, contractors are great, and we cannot do without them, but they are in the same dilemma as us, if we have reduced income, it cannot go out, and they to, are close to the bottom of that chain.</p><p> I hope this massive shock of brexit, covid and energy prices, along with the supply line issues, may finally make the penny drop. Because with prices of 85p for red diesel, and £650 a tonne for N, along with other prices, production has to take a hit, there is very little left in the pot, for many farmers, and alas, contractors.</p></blockquote><p></p>
[QUOTE="som farmer, post: 7795387, member: 86168"] pretty well the whole ag industry is run on a shoestring, completely controlled by what the big super/mkts are prepared to pay, even for what they don't buy, their price sets the whole. Those that run the s/mkts, are extremely good business men, they don't give a ###### about anything other than their profit, they are completely ruthless. All my farming life, it's been, not paid enough, but product is still produced. If the boot was on the other foot, and your suppliers kept moaning we need more money, but you can still buy all you need, without a price increase, what would you do ? It is only when short, does the price increase. There used to be butter mountains, wine lakes, etc, 1,000,000's of tons of all ag produce, all held in intervention, set aside, quotas all came in to reduce the surplus. Well that surplus has gone, intervention is still there, for emergencies, but no longer is a surplus produced. Our milk prices are pretty near set, by the fronterra auctions, which trade just 5% of global dairy supplies, and all we get are accusations of destroying the planet, and given mega amounts in subsidies. Contracting as a profession, must be hard, just as with farmers, imput prices are on a speedy upward surge, but what we sell, is not. You only have to go to an agshow, and see the mass of equipment, assistance, building, and drug companies present, start looking at them as parasites, because, they all rely on us, for their living, without us, the dole ! Much of the above, has been supported, by the 'just in time' system, that, l suspect, is nearly defunct. But it is important to realise the effect that will have, it will mean virtually every business will have to hold more stock, an expense that was removed. Who will pay for that stock ? You can be certain everyone will try and pass it down the line, in food, that's us. I am not sure that our industry can withstand higher imput costs, without rising prices, the trouble is, we are the bottom of the chain, and we will be targeted so all above us in that chain, try and pass those extra costs down, to us. To be very fair, contractors are great, and we cannot do without them, but they are in the same dilemma as us, if we have reduced income, it cannot go out, and they to, are close to the bottom of that chain. I hope this massive shock of brexit, covid and energy prices, along with the supply line issues, may finally make the penny drop. Because with prices of 85p for red diesel, and £650 a tonne for N, along with other prices, production has to take a hit, there is very little left in the pot, for many farmers, and alas, contractors. [/QUOTE]
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