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Arable Farming
Cropping
Potato crop 2021
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<blockquote data-quote="Hindsight" data-source="post: 7610616" data-attributes="member: 3169"><p>Why do you say that? This is a genuine question. </p><p></p><p>Let me ask you - if the merchants representative published a guide price of say £100 tonne for this Autumn would you blindly accept that for your crop even though you know the cost of production is nearer £200? Presume so?! </p><p></p><p>I say the last thing the bag market needs is an 'official guide price' merchants and the trade can hide behind, quote and dominate. It just means the bag trade heads off into the disaster world which is the packing job where so much crop is now on contract that the seven or so main packers (proxy for there respective supermarket retailer) can stand out from the free buy market and thus destroy any potential of free buy premium - so barring complete crop failure the contract price is the maximum. And because the free buy price is disastrous this has had the effect of ensuring an even greater tonnage is now contracted. And why - well the supermarket retailers sell at a fixed price all year - the last thing they want is volatility in raw material price. </p><p></p><p>The bag trade thank goodness is still a 'true' market with umpteen buyers (chip shops) no larger financially than the farmer supplier. So there is an element of free market competition. And the end user is less price sensitive as the potato is considerably smaller percentage of the end product price.</p><p></p><p>In so far as a market report mechanism - now AHDB is gone something else will appear - probably web based forum type share information. </p><p></p><p>My views so probably wrong.</p></blockquote><p></p>
[QUOTE="Hindsight, post: 7610616, member: 3169"] Why do you say that? This is a genuine question. Let me ask you - if the merchants representative published a guide price of say £100 tonne for this Autumn would you blindly accept that for your crop even though you know the cost of production is nearer £200? Presume so?! I say the last thing the bag market needs is an 'official guide price' merchants and the trade can hide behind, quote and dominate. It just means the bag trade heads off into the disaster world which is the packing job where so much crop is now on contract that the seven or so main packers (proxy for there respective supermarket retailer) can stand out from the free buy market and thus destroy any potential of free buy premium - so barring complete crop failure the contract price is the maximum. And because the free buy price is disastrous this has had the effect of ensuring an even greater tonnage is now contracted. And why - well the supermarket retailers sell at a fixed price all year - the last thing they want is volatility in raw material price. The bag trade thank goodness is still a 'true' market with umpteen buyers (chip shops) no larger financially than the farmer supplier. So there is an element of free market competition. And the end user is less price sensitive as the potato is considerably smaller percentage of the end product price. In so far as a market report mechanism - now AHDB is gone something else will appear - probably web based forum type share information. My views so probably wrong. [/QUOTE]
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Potato crop 2021
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