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<blockquote data-quote="som farmer" data-source="post: 8131480" data-attributes="member: 86168"><p>the only real way, to increase profit, is to reduce COP, which is very difficult, but retailers have worked out the best 25% of producers costs, and if anyone thinks they will pay, any more than they absolutely have to, is dreaming. Prices rise, when product is short, and they have to compete, to purchase what they need. Even then, its the least possible amount, regardless of what it actually costs to produce it. Up till the present day, retailers have been able to source, all the milk they need, at their price, and despite all the facts and figures, showing COP as more than their price, they continue to receive the milk, they require, with no problems. If, you were in their shoes, with producers telling you, they can't produce it, at their price, but you could source all you need, without any problem, what would you say ?</p><p></p><p>To add further insult, up till now, when milk has been 'short', and they up the price, all we do, as farmers, is increase production, and then, milk is no longer 'short', so they drop the price, that scenario, has happened time, and time again, and each time we have to run faster, to stay in the same place. And there is only dairy farmers to blame for that, we never seem to learn the lesson. For absolute certainty, there are dairy farmers, working out, how to increase their production, on todays rising prices, how much to buy more cows, put up new buildings/parlour, take on more land etc, heard of 1 farm, bidding £260ac, and not getting it, which is all fine. So, more milk, price goes down, then it is most certainly not all right.. And, who is to blame ?</p><p></p><p>I will say, for once, there might not be enough incentive to increase production, at 70ppl though, farmers will jump. So, the only certain way to increase profit, is through cutting COP. And that is hard.</p></blockquote><p></p>
[QUOTE="som farmer, post: 8131480, member: 86168"] the only real way, to increase profit, is to reduce COP, which is very difficult, but retailers have worked out the best 25% of producers costs, and if anyone thinks they will pay, any more than they absolutely have to, is dreaming. Prices rise, when product is short, and they have to compete, to purchase what they need. Even then, its the least possible amount, regardless of what it actually costs to produce it. Up till the present day, retailers have been able to source, all the milk they need, at their price, and despite all the facts and figures, showing COP as more than their price, they continue to receive the milk, they require, with no problems. If, you were in their shoes, with producers telling you, they can't produce it, at their price, but you could source all you need, without any problem, what would you say ? To add further insult, up till now, when milk has been 'short', and they up the price, all we do, as farmers, is increase production, and then, milk is no longer 'short', so they drop the price, that scenario, has happened time, and time again, and each time we have to run faster, to stay in the same place. And there is only dairy farmers to blame for that, we never seem to learn the lesson. For absolute certainty, there are dairy farmers, working out, how to increase their production, on todays rising prices, how much to buy more cows, put up new buildings/parlour, take on more land etc, heard of 1 farm, bidding £260ac, and not getting it, which is all fine. So, more milk, price goes down, then it is most certainly not all right.. And, who is to blame ? I will say, for once, there might not be enough incentive to increase production, at 70ppl though, farmers will jump. So, the only certain way to increase profit, is through cutting COP. And that is hard. [/QUOTE]
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