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Janet Hughes DEFRA Missing in action?
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<blockquote data-quote="Goweresque" data-source="post: 8144436" data-attributes="member: 818"><p>Yes but better prices bring every parasite out of the woodwork to suck on the extra cash flow. Its the reverse of the supermarket issue - farmers lack market power for their output prices because they are many and the supermarkets (and processors) are few, and the same applies to the input market - when output prices go up the input suppliers know they can raise their prices in lock step because they are few and farmers are many. </p><p></p><p>We all know that magic connection between the price of grain and the price of fertiliser, there is no way that all the input suppliers will ever allow higher world food prices to remain in farmers pockets. Everyone, from fertiliser manufacturers, to the agro-chemical conglomerates to the half a dozen big machinery makers will see extra cash pouring into farmers coffers and think 'We'll have that!' And they will because who else do you buy your fertiliser or new tractor from but one of the cartel?</p></blockquote><p></p>
[QUOTE="Goweresque, post: 8144436, member: 818"] Yes but better prices bring every parasite out of the woodwork to suck on the extra cash flow. Its the reverse of the supermarket issue - farmers lack market power for their output prices because they are many and the supermarkets (and processors) are few, and the same applies to the input market - when output prices go up the input suppliers know they can raise their prices in lock step because they are few and farmers are many. We all know that magic connection between the price of grain and the price of fertiliser, there is no way that all the input suppliers will ever allow higher world food prices to remain in farmers pockets. Everyone, from fertiliser manufacturers, to the agro-chemical conglomerates to the half a dozen big machinery makers will see extra cash pouring into farmers coffers and think 'We'll have that!' And they will because who else do you buy your fertiliser or new tractor from but one of the cartel? [/QUOTE]
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