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Agricultural Matters
NFU price negotiation with British Sugar - competition law
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<blockquote data-quote="Grass And Grain" data-source="post: 8215296" data-attributes="member: 23184"><p>The quality aspect is interesting. Currently we seem to be often required to provide high provenance (thinking Red Tractor) produce, yet often compete with standard quality imports. Suppose this is simar to the processor who is required by Mr Supermarket to be BRC audited, just to be able to supply the supermarket. </p><p></p><p>Clearly with the broiler example, lack of willingness to produce by individual farmers caused a price rise. Free markets working to settle on a market price. Although wouldn't have been lawful if all those broiler growers had organised this between themselves, yet they could join a cooperative marketing association. I'm not sure where the line is drawn (maybe at 40% of the market volume, i.e. dominance in the marketplace).</p><p></p><p>One thing for certain, many producers negotiating price as a large group will likely secure better prices than thousands of farmers working as individuals.</p></blockquote><p></p>
[QUOTE="Grass And Grain, post: 8215296, member: 23184"] The quality aspect is interesting. Currently we seem to be often required to provide high provenance (thinking Red Tractor) produce, yet often compete with standard quality imports. Suppose this is simar to the processor who is required by Mr Supermarket to be BRC audited, just to be able to supply the supermarket. Clearly with the broiler example, lack of willingness to produce by individual farmers caused a price rise. Free markets working to settle on a market price. Although wouldn't have been lawful if all those broiler growers had organised this between themselves, yet they could join a cooperative marketing association. I'm not sure where the line is drawn (maybe at 40% of the market volume, i.e. dominance in the marketplace). One thing for certain, many producers negotiating price as a large group will likely secure better prices than thousands of farmers working as individuals. [/QUOTE]
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NFU price negotiation with British Sugar - competition law
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