- Location
- Ledbury, Herefordshire
Really interesting report published recently by the food research collaboration: https://foodresearch.org.uk/publications/the-supermarket-system-balanced-on-a-knife-edge/
Telling us what we already know? Supermarketing: A model balanced on a knife edge
- Thread starter SteveHants
- Start date
Slim margins takes a bit of beleiving. I saw baker size spuds for sale in morrisons £8000/ton. If there margins are slim its because their fixed costs are way to high. Their fixed costs being too high is symptamatic of having it too easy and too much control until the discounters came along and give them a kick up the ass.
spider mike
Member
Supermarkets aren't cheap though. They sell the idea of cheapness via low prices on the staples where they can screw the farmer ie milk and veg. And convenience with everything being under one roof. But what they stock is what they can make the biggest margin on.
- Location
- LINCOLNSHIRE/KENYA
2020-2021 Tesco turned over 53 billion pounds and made a profit of 1.7 billion pounds basically 3% profit. Business doesn’t seem brilliant. I’d say they are as much a victim of successive Governments cheap food policies as farmers. Lidl lost £25.1 million their model doesn’t look to be working either.
ollie989898
Member
That profit figure will be the one they chose to announce after their legions of accountants did their level best to obliterate it.
- Location
- LINCOLNSHIRE/KENYA
Which one Tesco as a public company has a duty to its shareholders to make as big a profit as possible which is where they ran into trouble before by over-inflating profits whilst Lidl which is privately owned will try to hide profits as much as possible. Low food prices only benefit the consumers unfortunately there’s more of them than us.
- Location
- Eastern Ontario Canada
Where the money is really going. Time to cut out the middle man. Going to source as much as possible direct from my neighbouring farmers.
" But for some price increases affecting Americans, there’s another culprit: dominant corporations in uncompetitive markets taking advantage of their market power to raise prices while increasing their own profit margins. Meat prices are a good example. "
" The November Consumer Price Index data released this morning demonstrates that meat prices are still the single largest contributor to the rising cost of food people consume at home."
" According to these companies’ latest quarterly earnings statements, their gross profits have collectively increased by more than 120% since before the pandemic, and their net income has surged by 500%. They have also recently announced over a billion dollars in new dividends and stock buybacks, on top of the more than $3 billion they paid out to shareholders since the pandemic began."
The source ---
https://www.whitehouse.gov/briefing...ower-to-raise-prices-and-grow-profit-margins/
"Some claim that meat processors are forced to raise prices to the level they are now because of increasing input costs (e.g., things like the cost of labor or transportation), but their own earnings data and statements contradict that claim. Their profit margins—the amount of money they are making over and above their costs—have skyrocketed since the pandemic. Gross margins are up 50% and net margins are up over 300%. If rising input costs were driving rising meat prices, those profit margins would be roughly flat, because higher prices would be offset by the higher costs. Instead, we’re seeing the dominant meat processors use their market power to extract bigger and bigger profit margins for themselves. Businesses that face meaningful competition can’t do that, because they would lose business to a competitor that did not hike its margins."
" But for some price increases affecting Americans, there’s another culprit: dominant corporations in uncompetitive markets taking advantage of their market power to raise prices while increasing their own profit margins. Meat prices are a good example. "
" The November Consumer Price Index data released this morning demonstrates that meat prices are still the single largest contributor to the rising cost of food people consume at home."
" According to these companies’ latest quarterly earnings statements, their gross profits have collectively increased by more than 120% since before the pandemic, and their net income has surged by 500%. They have also recently announced over a billion dollars in new dividends and stock buybacks, on top of the more than $3 billion they paid out to shareholders since the pandemic began."
The source ---
https://www.whitehouse.gov/briefing...ower-to-raise-prices-and-grow-profit-margins/
"Some claim that meat processors are forced to raise prices to the level they are now because of increasing input costs (e.g., things like the cost of labor or transportation), but their own earnings data and statements contradict that claim. Their profit margins—the amount of money they are making over and above their costs—have skyrocketed since the pandemic. Gross margins are up 50% and net margins are up over 300%. If rising input costs were driving rising meat prices, those profit margins would be roughly flat, because higher prices would be offset by the higher costs. Instead, we’re seeing the dominant meat processors use their market power to extract bigger and bigger profit margins for themselves. Businesses that face meaningful competition can’t do that, because they would lose business to a competitor that did not hike its margins."
- Location
- Essex
- Location
- Essex
Oh there you are!
betweenthelines
Member
- Location
- southwest
But, like all big businesses, they are continually reinvesting to expand-buying more land, building more stores etc.
Imaging farmers being able to buy more cows, more land, upgrade tractors and milking parlours every year.
- Location
- Essex
A cow can only have one calf a year and give so much milk, only so much wheat to the acre in a year, combine only gets used for 6 weeks a year.
The factories and shops that take this stuff can run 365 if they want, selling the equivalent of one farm's output multiple times a year. They use the same assets day in day out.
Who's farming who?
the .7 will go on their most effective use of their money, political lobbying. Reminding your elected reps that they are too big to fail. The 9 will go to shareholders, buying up land, hiring the best for the top jobs, soon spend money when you set to it.
They employ a lot of people which, in HM Govt eyes, makes them
They employ a lot of people which, in HM Govt eyes, makes them
https://www.theguardian.com/sustain...11bn-to-top-up-low-wages-paid-by-uk-companies
https://www.lancs.live/news/uk-world-news/asda-morrisons-tesco-aldi-lidl-21134109
They don't employ them. We do. The cartel is underwritten by the taxpayer at every turn.