Race to the bottom - who pays

[raymono57]

Aldi advertisement yesterday - veg 19p per pack.
Today, Lidl advertisement in the Times - veg 15p per pack, turkey £2.80 per kilo.
Are these loss leaders for the discount supermarkets or are the farmers picking up the tab again?

No winners here I fear.

Raymondo

 

[Formatted]

I imagine most fresh products are loss leaders in supermarkets and they'll make their margin on ready meals, pre-packaged items and branded goods

 

[Pennine Ploughing]

No winners here I fear.

the customer wins

 

[Steevo]

I'd be surprised if the supermarket lost out on them and footed any bill.....most (if not all) promotions are paid for by the product manufacturer as I understand it. Tesco tell them your product is on offer next week etc. If you won't do it, we'll stock someone elses brand on the shelf instead.

 

[bluebell]

race to the bottom the mega dairies of 3,000 plus cows that then have to employ migrant workers to produce cheaper and cheaper dairy products replacing many many small family run farms ? whats better ? better for the workers ? better for the consumer ? better for the country side ? better for the many trades that suported the many small farms ? a lesson from america ?

 

[John Slejpner]

I'd be surprised if the supermarket lost out on them and footed any bill.....most (if not all) promotions are paid for by the product manufacturer as I understand it. Tesco tell them your product is on offer next week etc. If you won't do it, we'll stock someone elses brand on the shelf instead.

Don't lose any sleep over supermarket suppliers - they have been operating in a ruthless environment since 1990 if not a bit before. If they are still at it they are winners!

Note that only an idiot would build a business to supply multiples UNLESS they had a genuinely unique offering, and could protect it.

 

[unlacedgecko]

race to the bottom the mega dairies of 3,000 plus cows that then have to employ migrant workers to produce cheaper and cheaper dairy products replacing many many small family run farms ? whats better ? better for the workers ? better for the consumer ? better for the country side ? better for the many trades that suported the many small farms ? a lesson from america ?

Yes large units are infinitely better for the workers. There will be layers of management and a chance for promotion/career advancement, rather than 40yrs being a sole employee.

 

[Hilly]

Yes large units are infinitely better for the workers. There will be layers of management and a chance for promotion/career advancement, rather than 40yrs being a sole employee.

Less stress , bring it on, I want my holiday pay overtime and sick pay , ultimately the customer will pay not the farmer .

 

[John Slejpner]

The short answer to the original question is that the " middle class " loses.

 

[John Slejpner]

race to the bottom the mega dairies of 3,000 plus cows that then have to employ migrant workers to produce cheaper and cheaper dairy products replacing many many small family run farms ? whats better ? better for the workers ? better for the consumer ? better for the country side ? better for the many trades that suported the many small farms ? a lesson from america ?

Follow the money.
Where does the cash to establish the 3000 dairy come from ?
This is what happens when credit is too cheap.

 

[bluebell]

a bit of different messages, on the one hand the farming industry needs young people to come into it as a serious career not, as a the good life hobby farming so they might have to take on small council farms, if you can find a council with farms still to rent and then pay a rent and try to earn a living ? the other message is bigger and bigger farms run by one person and still complaining they cant make it pay ? whats the answer ?

 

[Steevo]

a bit of different messages, on the one hand the farming industry needs young people to come into it as a serious career not, as a the good life hobby farming so they might have to take on small council farms, if you can find a council with farms still to rent and then pay a rent and try to earn a living ? the other message is bigger and bigger farms run by one person and still complaining they cant make it pay ? whats the answer ?

Larger units and trained managers?