Apparently there is a Facebook page "dairy farmers need your help please" and the gist of it is that if you support dairy farmers you should buy branded milk and not the Home Brand stuff at about half the price.
What I do not understand is that if the supermarket sells milk for $1 a litre the supermarket surely makes a profit...maybe 2c for arguments sake or profit neutral.
Now if you buy branded milk at $1.86 a litre the supermarket will make a larger profit and the profit margin % will be higher.
The milk in both home and branded milk come from the same suppliers Murray Goulburn and Frontera who buy milk from the dairy farmers.
Can I really believe that the dairy farmers actually get more money for branded milk or is it the villains who profit.
Does anyone have an angle on this?
Regards
Aus-Kiwi said
07:23 PM May 19, 2016
There's a world milk glut at present . The Supermarkets are dictating the buy at gate price to help there profit margin . We buy direct off Aust Dairy Farmers ., Also doesn't help when Frontera have farms in Asia yet Aust / NZ farmers have to buy shares in Fontera .. Last year for two months we actually owed Frontera .. Remember the Chinese milk supplement ? That was Fontera in China !
Bryan said
08:20 PM May 19, 2016
I wish I could still buy milk directly from the dairy farmer before its messed up with all the stuff that's done to it these days. My better half on the other hand likes hers buggered about to the extent that its a very thin watery consistency.
Until I was 18 or so, our milk was direct from the cow and I'm still alive (I think) many, many years later.
Such is the price of progress (or regress)!!!
Aus-Kiwi said
08:37 PM May 19, 2016
Pastorized and homogenised is ok . It's just super heated steam treated . But the cheap milk had butterfat etc taken out . Real milk contains between 3 to 6 cream . The dairy brand is far better . Or if you want buy the more expensive . Then water it down to the $1 a litre quality ..
kesue said
01:57 PM May 20, 2016
Isn't it a shame that people are quite happy to buy "spring or mountain fresh" water, and you have absolutely no idea where that's come from, for at least a $1.50 a litre but baulk at paying the same money for a litre of milk which the farmer has to work hard to produce and collect. At the moment they are being screwed hard by the distributers, namely Murray Goulburn and Frontera and eventually by the supermarket giants. It would be nice to think they were only making 2 cents a litre at the supermarket but I don't think so. If we don't support our farmers and pay them a fair price then it wont be too long into the future that our milk will come from overseas....what a thought. Keith
Desert Dweller said
03:58 PM May 20, 2016
Coles seem to have branded milk like Devondale at $1 per litre quite often these days.
hako said
07:52 PM May 20, 2016
Bottom line to my query is if I pay $1 as against $3 a litre for my milk, does the dairy farmer get more money if I buy $3 milk. Please note when I say dairy farmer I mean the actual farmer and not the co-op which is owed by overseas companies (Italy and China).
From what I understand if we buy branded milk the supermarket and the co-op make more money buy does that filter down to the bloke who milks the cows.
Good Luck.,
the rocket said
09:13 AM May 21, 2016
I have 2 thoughts - 1. i heard somewhere the chinese have bought a dairy farm in tasmania - how is this going to effect our dairy farmers?
2. How do we know we are buying 100% australian milk?
i would like to know the whole story.
For me - no more homebrand. I am happy to pay more. For the farmers - my heart goes out to you.
so come on australia help our dairy industry and fellow australians. Oe, oe, oe.
the rocket said
09:14 AM May 21, 2016
hako wrote:
Bottom line to my query is if I pay $1 as against $3 a litre for my milk, does the dairy farmer get more money if I buy $3 milk. Please note when I say dairy farmer I mean the actual farmer and not the co-op which is owed by overseas companies (Italy and China). From what I understand if we buy branded milk the supermarket and the co-op make more money buy does that filter down to the bloke who milks the cows.
Good Luck.,
Good question hako, i want to know that answer too.
BaupleNut said
11:37 AM May 21, 2016
It wasn't 1 dairy farm it's one company which owns 25 dairy farms,milking 18,000 cows.The Chinese government are buying dairy farms around the hunter valley at the moment. If you think this milk is going to stay in Australia, your kidding yourself. With a shortage of quality baby formula in China,I would say it's very likely to be shipped out or maybe processed first at a Chinese owned processing plant first, manned by 457 visa Chinese workers.
The Phantom said
01:39 PM May 21, 2016
BaupleNut wrote:
It wasn't 1 dairy farm it's one company which owns 25 dairy farms,milking 18,000 cows.The Chinese government are buying dairy farms around the hunter valley at the moment. If you think this milk is going to stay in Australia, your kidding yourself. With a shortage of quality baby formula in China,I would say it's very likely to be shipped out or maybe processed first at a Chinese owned processing plant first, manned by 457 visa Chinese workers.
If the reason for the drop in milk prices is a over supply of milk world wide, why do the Chinese Government need to come to the Hunter Valley to buy dairy farms and send the milk to China? How are the Chinese responsible for Australian farmers being disadvantaged as seems to be the thrust of your argument.
And 457 Visas were introduced by John Howard in 1996 (called Temporary Work(Skilled)(SubClass 457)visa) so it is pointless to blame the Chinese for the visas if, indeed, they are using them. You can vote the Liberals out on 2 July and then agitate for the Labour Party to revoke the 457 visas.
Just another example of scaremongering about the Chinese.
There are 6 major firms in Australia controlling approximately 85% of dairy products.
Murray Goulburn - a farmers co-operative - Australian
Fonterra - NZ owned
Lion - Japanese owned
Parmalat - Italian
Warrnambool Cheese and Butter - majority Canadian owned by Saputo Inc.
Bega - owned by Fonterra
That was discovered after 5 minutes Google research. Isn't it nice to have the real facts rather than making up your own.
Anything else I can help with?
The Phantom
BaupleNut said
02:20 PM May 21, 2016
Please explain your conclusions oh purple headed one. I didn't blame the chinese for any of those situations, if anyone's to blame it's our government, where's the evidence of over supply? and 457 visa's aren't abused are they?So why don't you crawl back into that hole you call a cave and bite the next passerby.
-- Edited by BaupleNut on Saturday 21st of May 2016 02:21:27 PM
Aus-Kiwi said
02:43 PM May 21, 2016
In not trying to be a conspiracy theorist . But it SEEMS everything a certain country buys in Australia . The price goes up ., They STOP buying .. The price drops as local Manu can't afford to pay off the machinary they bought to produce the product .. Then next you here of overseas country buying out here at low fire sale prices ..
Bryan said
03:09 PM May 21, 2016
I think people quoting the 457 visa should look deeper into it as it is definitely not a source of cheap labour.
BaupleNut said
03:27 PM May 21, 2016
Not sure on the No. attached to these visa's, but maybe you remember this;
And then there was The Pacific Seasonal Workers recently who were ripped of instead of getting weekly wages they were issued a debt. So yeah some people don't look very close at all do you Bryan!
Aus-Kiwi said
03:29 PM May 21, 2016
Iff your the same nationality ? It may ? Or seems that way ?? 7/11 type rip off ?? But they tmk warn't 457 .,
Bryan said
07:56 PM May 21, 2016
BaupleNut wrote:
Not sure on the No. attached to these visa's, but maybe you remember this;
And then there was The Pacific Seasonal Workers recently who were ripped of instead of getting weekly wages they were issued a debt. So yeah some people don't look very close at all do you Bryan!
Were these workers on 457 visas?
I rest my case.
-- Edited by Bryan on Saturday 21st of May 2016 08:12:38 PM
HunnyBunny said
06:03 PM May 25, 2016
From what I have read the problem is that a price cut earlier this year by Murray Goulburn & Frontera dropping the price from $5.60 per kilo of milk solids to $4.60 ( blamed on a slump in global prices) Has been made retrospective, leaving farmers owing money for product already sold. Because farmers have been paid $5.60 all financial year, Murray Goulburn and Fonterra are essentially claiming that the farmers were overpaid from July last year until the price cuts three weeks ago And now, the farmers suddenly owe Murray Goulburn and Fonterra massive debts.
The average debt reportedly owed to Murray Goulburn by a dairy farmer is $120,000.
It also meant suppliers cost of producing dairy products now exceed the wholesale price. It costs about 38¢ to produce a litre of milk. The new prices see farmers paid 37¢ a litre.
rockylizard said
07:02 PM May 25, 2016
Gday...
Thank you HunnyBunny.
THAT is the problem .... nothing to do with $1/litre milk. Although that isn't helping the industry in any way as Coles/Woolies squeezed the providers to low supply prices.
Thanks for posting that Brickies ... a very clear, and surprisingly unemotional, explanation of the predicament of the dairy industry at the moment.
The social media driven hyperbole regarding $1/litre milk as the reason for the dairy industry's trauma is unfortunate and misleading.
Rejecting $1/litre milk and buying 'branded' milk only increases the profit to the supermarket and their supplier - with NO effect to the producer ... the farmer.
I am always reluctant to seek government intervention in any industry as it very often introduces further inefficiencies. However, I think there needs to be a 'government' investigation/audit on the Frontera's of the industry and perhaps a 'floor price' established TO THE FARMER.
Cheers - John
brickies said
06:49 PM May 26, 2016
I think we need to eat more dairy product other than milk , eat more cheese and yogurt .
Hylife said
11:06 PM May 30, 2016
HunnyBunny wrote:
From what I have read the problem is that a price cut earlier this year by Murray Goulburn & Frontera dropping the price from $5.60 per kilo of milk solids to $4.60 ( blamed on a slump in global prices) Has been made retrospective, leaving farmers owing money for product already sold. Because farmers have been paid $5.60 all financial year, Murray Goulburn and Fonterra are essentially claiming that the farmers were overpaid from July last year until the price cuts three weeks ago And now, the farmers suddenly owe Murray Goulburn and Fonterra massive debts.
The average debt reportedly owed to Murray Goulburn by a dairy farmer is $120,000.
It also meant suppliers cost of producing dairy products now exceed the wholesale price. It costs about 38¢ to produce a litre of milk. The new prices see farmers paid 37¢ a litre.
That is quite normal practice for a Cooperative.
Ignorance by farmers on how coop shares work has now come back to bite them on the @rse.
Farmers are effectively shareholders in a coop and have been paid advanced dividends on their shares which has been based on their production.
Now that the coop income is down, just like any shareholder in any incorporated entity, you have a liability up to the value of your shares.
If the entity is to prevent a loss the shareholders must pay up.
If you owned Telstra shares and Telstra got into a financial pickle they could make their shareholders pay up too.
The difference is that the value of a milk coop is based on an annual estimate for the production of a particular quantity milk being sold at a particular rate. One shouldn't gamble if one cannot afford to lose. If a farmer spends all their advanced dividends without putting some aside for the inherent risk of receiving pre-payment dividends there is no one to blame but the farmer.
This little squirrel for one, is not sucked in by the sob stories being spun by the rabbits, who failed to prepare for the winter.
Aus-Kiwi said
10:55 AM May 31, 2016
What compounds the milk price . Is the way Coles and Woolworths have dominated, taken advantage the kill glut and pricing structure!
dazz49 said
09:05 PM Jun 8, 2016
Now the other side of the coin. Dairy Farmers received some huge payouts from the government about ten years ago when dairying was deregulated. Some went out of dairying whilst others used the money to double production, or buy more land. And when the farmer wants to buy merchandise for his farm or a new vehicle does he support the local business or does he shop around to get the cheapest price. Or when he goes off to the big smoke does he not stop at the Coles or Woolies store and stock up as his grocer at home is a bit dearer. It is a fact of life. EVERYONE wants to buy at the best price not the fairest to all price. Its called competition and the strongest survive. I had a retail outlet once where it was cheaper to buy my Coca Cola from the supermarket than it was direct from COCA COLA. And I sold it for a profit after the super market had closed for the day. I bet most GNs fill up at the cheapest fuel outlet and use the shopper docket. I do Cheers Daz
dazz49 said
09:10 PM Jun 8, 2016
Hylife
If you owned Telstra shares and Telstra got into a financial pickle they could make their shareholders pay up too.
Absolute rubbish This sort of information is ill informed
Apparently there is a Facebook page "dairy farmers need your help please" and the gist of it is that if you support dairy farmers you should buy branded milk and not the Home Brand stuff at about half the price.
What I do not understand is that if the supermarket sells milk for $1 a litre the supermarket surely makes a profit...maybe 2c for arguments sake or profit neutral.
Now if you buy branded milk at $1.86 a litre the supermarket will make a larger profit and the profit margin % will be higher.
The milk in both home and branded milk come from the same suppliers Murray Goulburn and Frontera who buy milk from the dairy farmers.
Can I really believe that the dairy farmers actually get more money for branded milk or is it the villains who profit.
Does anyone have an angle on this?
Regards
I wish I could still buy milk directly from the dairy farmer before its messed up with all the stuff that's done to it these days. My better half on the other hand likes hers buggered about to the extent that its a very thin watery consistency.
Until I was 18 or so, our milk was direct from the cow and I'm still alive (I think) many, many years later.
Such is the price of progress (or regress)!!!
From what I understand if we buy branded milk the supermarket and the co-op make more money buy does that filter down to the bloke who milks the cows.
Good Luck.,
I have 2 thoughts - 1. i heard somewhere the chinese have bought a dairy farm in tasmania - how is this going to effect our dairy farmers?
2. How do we know we are buying 100% australian milk?
i would like to know the whole story.
For me - no more homebrand. I am happy to pay more. For the farmers - my heart goes out to you.
so come on australia help our dairy industry and fellow australians. Oe, oe, oe.
If the reason for the drop in milk prices is a over supply of milk world wide, why do the Chinese Government need to come to the Hunter Valley to buy dairy farms and send the milk to China? How are the Chinese responsible for Australian farmers being disadvantaged as seems to be the thrust of your argument.
And 457 Visas were introduced by John Howard in 1996 (called Temporary Work(Skilled)(SubClass 457)visa) so it is pointless to blame the Chinese for the visas if, indeed, they are using them. You can vote the Liberals out on 2 July and then agitate for the Labour Party to revoke the 457 visas.
Just another example of scaremongering about the Chinese.
There are 6 major firms in Australia controlling approximately 85% of dairy products.
Murray Goulburn - a farmers co-operative - Australian
Fonterra - NZ owned
Lion - Japanese owned
Parmalat - Italian
Warrnambool Cheese and Butter - majority Canadian owned by Saputo Inc.
Bega - owned by Fonterra
That was discovered after 5 minutes Google research. Isn't it nice to have the real facts rather than making up your own.
Anything else I can help with?
The Phantom
Please explain your conclusions oh purple headed one. I didn't blame the chinese for any of those situations, if anyone's to blame it's our government, where's the evidence of over supply? and 457 visa's aren't abused are they?So why don't you crawl back into that hole you call a cave and bite the next passerby.
http://theconversation.com/morrison-ticks-off-sale-of-australias-biggest-dairy-to-chinese-buyer-55236
-- Edited by BaupleNut on Saturday 21st of May 2016 02:21:27 PM
I think people quoting the 457 visa should look deeper into it as it is definitely not a source of cheap labour.
www.abc.net.au/4corners/stories/2015/05/04/4227055.htm
And then there was The Pacific Seasonal Workers recently who were ripped of instead of getting weekly wages they were issued a debt. So yeah some people don't look very close at all do you Bryan!
Were these workers on 457 visas?
I rest my case.
-- Edited by Bryan on Saturday 21st of May 2016 08:12:38 PM
The average debt reportedly owed to Murray Goulburn by a dairy farmer is $120,000.
It also meant suppliers cost of producing dairy products now exceed the wholesale price. It costs about 38¢ to produce a litre of milk. The new prices see farmers paid 37¢ a litre.
Gday...
Thank you HunnyBunny.
THAT is the problem .... nothing to do with $1/litre milk. Although that isn't helping the industry in any way as Coles/Woolies squeezed the providers to low supply prices.
Cheers - John
Gday...
Thanks for posting that Brickies ... a very clear, and surprisingly unemotional, explanation of the predicament of the dairy industry at the moment.
The social media driven hyperbole regarding $1/litre milk as the reason for the dairy industry's trauma is unfortunate and misleading.
Rejecting $1/litre milk and buying 'branded' milk only increases the profit to the supermarket and their supplier - with NO effect to the producer ... the farmer.
I am always reluctant to seek government intervention in any industry as it very often introduces further inefficiencies. However, I think there needs to be a 'government' investigation/audit on the Frontera's of the industry and perhaps a 'floor price' established TO THE FARMER.
Cheers - John
That is quite normal practice for a Cooperative.
Ignorance by farmers on how coop shares work has now come back to bite them on the @rse.
Farmers are effectively shareholders in a coop and have been paid advanced dividends on their shares which has been based on their production.
Now that the coop income is down, just like any shareholder in any incorporated entity, you have a liability up to the value of your shares.
If the entity is to prevent a loss the shareholders must pay up.
If you owned Telstra shares and Telstra got into a financial pickle they could make their shareholders pay up too.
The difference is that the value of a milk coop is based on an annual estimate for the production of a particular quantity milk being sold at a particular rate.
One shouldn't gamble if one cannot afford to lose. If a farmer spends all their advanced dividends without putting some aside for the inherent risk of receiving pre-payment dividends there is no one to blame but the farmer.
This little squirrel for one, is not sucked in by the sob stories being spun by the rabbits, who failed to prepare for the winter.
Now the other side of the coin. Dairy Farmers received some huge payouts from the government about ten years ago when dairying was deregulated. Some went out of dairying whilst others used the money to double production, or buy more land. And when the farmer wants to buy merchandise for his farm or a new vehicle does he support the local business or does he shop around to get the cheapest price. Or when he goes off to the big smoke does he not stop at the Coles or Woolies store and stock up as his grocer at home is a bit dearer. It is a fact of life. EVERYONE wants to buy at the best price not the fairest to all price. Its called competition and the strongest survive. I had a retail outlet once where it was cheaper to buy my Coca Cola from the supermarket than it was direct from COCA COLA. And I sold it for a profit after the super market had closed for the day. I bet most GNs fill up at the cheapest fuel outlet and use the shopper docket. I do Cheers Daz
Absolute rubbish This sort of information is ill informed
Daz