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Farming without subsidies
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<blockquote data-quote="stewart" data-source="post: 5858170" data-attributes="member: 42710"><p>Your memories of the MMB are different to mine, I remember the UK having one of the highest percentages of milk going into liquid, which was a high paying product, while our continental cousins were putting more of their milk into lower paying products, unfortunately this was not reflected in the price the farmer received, UK dairy farmers, even though they should have been receiving one of the highest milk prices in Europe were at the other end of the scale receiving one of the lowest.</p><p>I went to all the talks given by the MMB prior to the setting up of Milk Marque and after listening to the dinasours giving the presentations opted to go direct, the price increase post vesting day was huge, so much so that we didn't send any milk on 31st October 1994 sending twice as much to the dairy 1st November.</p><p>The MMB ran a pooling system for milk which I generally agree with, the way it was run was ridiculous, the CATFI system guarenteed a profit to the processing dairies, which by its very nature promoted inefficiencies, these inefficiencies were also clearly evident through the whole supply chain that the MMB ran.</p><p>You are dreaming if you believe that a present day MMB would see returns of 35-40ppl, how would or could they force supermarkets to pay more? The MMB couldn't obtain the highest price in Europe 25 years ago how would they do so now?</p><p>The system that is operating now doesn't seem to be much better with a dog eat dog environment. Producer co-ops would be the way to go, I have mentioned this several times, co ops just don't seem to work in the UK, despite the fact that they work in Europe and elsewhere, if every dairy farmer invested in a processing co op then the milk price would improve, the potential solution is in the hands of the farmer.</p><p>NZ generally gets discussed when subsidies are mentioned, due to the fact we don't have them, what we do have is a very good coordinated marketing strategy (see Lockwood Smiths presentation put up by Clive) the average NZ dairy farmer would have $500,000 invested in processing through their co ops, if the UK dairy farmer invested a similar amount in processing this would enable them to share in the profits from higher up the supply chain.</p></blockquote><p></p>
[QUOTE="stewart, post: 5858170, member: 42710"] Your memories of the MMB are different to mine, I remember the UK having one of the highest percentages of milk going into liquid, which was a high paying product, while our continental cousins were putting more of their milk into lower paying products, unfortunately this was not reflected in the price the farmer received, UK dairy farmers, even though they should have been receiving one of the highest milk prices in Europe were at the other end of the scale receiving one of the lowest. I went to all the talks given by the MMB prior to the setting up of Milk Marque and after listening to the dinasours giving the presentations opted to go direct, the price increase post vesting day was huge, so much so that we didn't send any milk on 31st October 1994 sending twice as much to the dairy 1st November. The MMB ran a pooling system for milk which I generally agree with, the way it was run was ridiculous, the CATFI system guarenteed a profit to the processing dairies, which by its very nature promoted inefficiencies, these inefficiencies were also clearly evident through the whole supply chain that the MMB ran. You are dreaming if you believe that a present day MMB would see returns of 35-40ppl, how would or could they force supermarkets to pay more? The MMB couldn't obtain the highest price in Europe 25 years ago how would they do so now? The system that is operating now doesn't seem to be much better with a dog eat dog environment. Producer co-ops would be the way to go, I have mentioned this several times, co ops just don't seem to work in the UK, despite the fact that they work in Europe and elsewhere, if every dairy farmer invested in a processing co op then the milk price would improve, the potential solution is in the hands of the farmer. NZ generally gets discussed when subsidies are mentioned, due to the fact we don't have them, what we do have is a very good coordinated marketing strategy (see Lockwood Smiths presentation put up by Clive) the average NZ dairy farmer would have $500,000 invested in processing through their co ops, if the UK dairy farmer invested a similar amount in processing this would enable them to share in the profits from higher up the supply chain. [/QUOTE]
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