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Farm Business
Agricultural Matters
The on-going up hill battle that is agriculture.....
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<blockquote data-quote="Goweresque" data-source="post: 7549096" data-attributes="member: 818"><p>But why be the farmer at all, if you can operate a successful processing/retailing business? You might as well just buy in the raw materials/products and forget about the production, its not going to make you much extra profit in and of itself.</p><p></p><p>This is farming's fatal flaw - there are very few synergies to be found between production and processing/retailing. If there were any Tesco would own millions of acres of farm land and direct its produce straight into its stores. But as we know the Co-op divested itself of its farms because owning them made no economic sense. They were better off concentrating on the retailing and ignoring the production as it added nothing to the bottom line.</p></blockquote><p></p>
[QUOTE="Goweresque, post: 7549096, member: 818"] But why be the farmer at all, if you can operate a successful processing/retailing business? You might as well just buy in the raw materials/products and forget about the production, its not going to make you much extra profit in and of itself. This is farming's fatal flaw - there are very few synergies to be found between production and processing/retailing. If there were any Tesco would own millions of acres of farm land and direct its produce straight into its stores. But as we know the Co-op divested itself of its farms because owning them made no economic sense. They were better off concentrating on the retailing and ignoring the production as it added nothing to the bottom line. [/QUOTE]
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The on-going up hill battle that is agriculture.....
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