Bacon sarnie?

[neilindevon]

So I've just seen on sky news that purchasing company "Beacon" has increased the price of uk bacon by up to 38% due to demand by China?
They are blaming this on brexit?
Surely a demand for British produce is a good thing, and this is no more than the fat cats milking the profits?
I'm sure you farmers don't see a percentage of this price increase?
Can anyone explain?
I'm not a politician or a farmer, just someone who hates to see the daily closure of British farms and believes a country is doomed if it can't produce enough food in proportion to its population.

 

[Exfarmer]

This is a positive of the Brexit vote, lower Uk pound drives up price to producers

 

[neilindevon]

I can see why the demand is beneficial, but won't hiking up prices to uk consumers push them towards a market which is already flooded with Danish produce(and thanks to supermarkets already receives a far greater profile)

 

[Sussex Martin]

I can see why the demand is beneficial, but won't hiking up prices to uk consumers push them towards a market which is already flooded with Danish produce(and thanks to supermarkets already receives a far greater profile)

Because the pound has fallen Danish bacon is more expensive for the supermarkets to purchase so should force them to look at home produced bacon for a while.

 

[Henarar]

Because the pound has fallen Danish bacon is more expensive for the supermarkets to purchase so should force them to look at home produced bacon for a while.

time to get some pigs ?

 

[stewart]

I can see why the demand is beneficial, but won't hiking up prices to uk consumers push them towards a market which is already flooded with Danish produce(and thanks to supermarkets already receives a far greater profile)

Is it thanks to Supermarkets? Or is it due to Danish producers promoting their product?

 

[Pasty]

Because the pound has fallen Danish bacon is more expensive for the supermarkets to purchase so should force them to look at home produced bacon for a while.

Which is what Remain are telling us is a very bad thing.

 

[stewart]

Because the pound has fallen Danish bacon is more expensive for the supermarkets to purchase so should force them to look at home produced bacon for a while.

Which is what Remain are telling us is a very bad thing.

There will be short term gains from a drop in the pound, once input prices have increased, due to a lower pound, most, if not all the gains from a low currency will be lost.

A currencies relative strength or weakness (in an open market) is generally decided by the Forex traders and the confidence in that currency, the pound has dropped due to a lack of confidence in the UK economy, this may change as time goes on.

 

[Pasty]

There will be short term gains from a drop in the pound, once input prices have increased, due to a lower pound, most, if not all the gains from a low currency will be lost.

A currencies relative strength or weakness (in an open market) is generally decided by the Forex traders and the confidence in that currency, the pound has dropped due to a lack of confidence in the UK economy, this may change as time goes on.

I would argue it has dropped due to pure speculation. It's been seen before. I have some background in this business.