Bank governor in 'apocalyptic' warning over rising food prices

[Henarar]

That is going to happen for sure but if say a farm cuts production by 30% then they will also need to cut their fixed costs/ own drawings by 30% to be any better off.

How many farms can actually cut fixed costs like that?

What costs are fixed

 

[gone up the hill]

What costs are fixed

Everything from insurance/ wages/ HP/ accountants and so the list goes on.

Yes the above can be cut but take insurance, are you really going to cut the amount insured by 30%? hell of a gamble and will pay off untill something goes badly wrong and you need to claim!

 

[gone up the hill]

Whilst we appear to be a world of sh!t at the moment we can't get too carried away. The world can generally produce enough food to feed itself and the government had already stated that the answer to this will be to get imports from Ukraine back on track ffs to help with food inflation.

Boris lives in cloud cuckoo land..

Will take years to get imports etc back on track from Ukraine let alone from Russia !

 

[glasshouse]

Right up to the hedge

Take the hedge out

 

[neilo]

What costs are fixed

'Fixed costs' are those that don't change in the business, even if you reduce the scale of enterprises.

 

[GeorgeK]

I'm surprised Bailey can even get into the Bank of England with all the chickens in there roosting

 

[Sid]

What costs are fixed

The ones that don't vary whether you have 1 cow/sheep/ton of corn or 100

 

[Huno]

All of them are cashing in on farmers post covid including the civil service and their friends... the winter of 2022/23 will make these threads seem paltry compared to how our general public of all classes will behave... just be glad you planted an acre of turnips for your soup

 

[Henarar]

Everything from insurance/ wages/ HP/ accountants and so the list goes on.

Yes the above can be cut but take insurance, are you really going to cut the amount insured by 30%? hell of a gamble and will pay off untill something goes badly wrong and you need to claim!

If you have less animals it costs less to insure them, the rest is hardly fixed

 

[gone up the hill]

'Fixed costs' are those that don't change in the business, even if you reduce the scale of enterprises.

Yes but those fixed costs need to reduce pro rata with the drop in herd/flock size or else your Cop per head on the remaining stock/ arable ground will rise !

Is that too hard to understand?

 

[hally]

If you have less animals it costs less to insure them, the rest is hardly fixed

I think the point is your car, tractor, house , bike, buildings , public liability, etc will cost the same to insure if you have 10cows or 10000.

 

[serf]

Take the hedge out

Can see the green crew letting that happen ....

 

[hoff135]

Who would have thought that adding 80million people a year to a planet they tell us is becoming more environmentally unstable every year, where there is no spare capacity for something to go wrong wasn't a good idea.

 

[Bald Rick]

Cost of food is immaterial, they are buying time.

Hence the rise of food delivery companies delivering fast food.

Was reading about “Dark Supermarkets“ recently such as Geddit where you order online and get stuff delivered to your door in less than 10 minutes (if you live within their catchment area) from a single garlic bulb to 12 pack of beer

Now that is weird

 

[devonbeef]

If you have less animals it costs less to insure them, the rest is hardly fixed

If a tractor breaks , it will cost the same to repair 1 cow or 100 cows

 

[serf]

Why? That last metre grows feck all of any value.

Cos the crap and green sh!t pees me off and the encroachment just gets further into the field

 

[Henarar]

I think the point is your car, tractor, house , bike, buildings , public liability, etc will cost the same to insure if you have 10cows or 10000.

Hardly, cos you won't need so much of any of them bar house and car and thats hardly all business

 

[Henarar]

If a tractor breaks , it will cost the same to repair 1 cow or 100 cows

Won't break so quick as it won't be doing the hours or you won't need so many tractors

 

[4course]

Just put up interest rates that'll stop them spending on stuff they can't afford anyway!

can someone explain to me how raising interest rates by 1/4 of a % is going to make the slightest difference to folk who are maxing out their credit cards on plastic throwaway shi-- paying well over 20%/annu

 

[Sid]

can someone explain to me how raising interest rates by 1/4 of a % is going to make the slightest difference to folk who are maxing out their credit cards on plastic throwaway shi-- paying well over 20%/annum

From what I can see it won't , energy and housing costs is what's hurting folk