Apparently they tried to get in Lidl too....
The part I don't understand is why they ever agreed to *supply supermarkets for less than it costs to produce the milk?
*as far as I'm aware you have to agree a sale (to supermarket) price before you start supplying them with the goods....
Surely supermarkets wouldn't go back on a contract & pay less before the contract was up?
I'm no market expert but my understanding is that farmers produce milk and only have a limited number of outlets (Supermarkets, Muller et al) for said milk. All outlets are getting squeezed by the customer for cheaper milk and it becomes a loss leader, made worse by cheap imports. The farmer is between a rock and a hard place. Refuse to sell at the ridiculously low price the outlets are paying and he's left with a shit load of milk and no buyer, sell at the very low price and he's making a loss. If British dairy farmers hold out for a higher price the supermarkets will just buy cheaper, lower welfare milk from overseas. Alot of dairy farmers have decided not to sell at a loss and ended up going out of business. I'm also led to believe that milk sold as milk generates a higher price for the farmers than milk sold for cheese and yoghurt type products. Supermarkets most definitely do go back on contracts to pay a certain price. What can the farmer do? his cows will still be costing money to keep and will still be producing milk. they have to accept the reduction. Finally, if we all bought our milk from the milkman, thereby guaranteeing the farmers a decent price for their product, we'd cut out the profit making supermarkets, we'd directly support the dairy industry and we'd employ the local milkman too boot.
I have the name of a very reliable milkman if anyone is interested
