Friday, 13 July 2012

Has the business world in the UK gone MAD


Has the business world in the UK gone MAD.

British farmers' milk price protest. Has the business world in the UK gone MAD.



British farmers' milk price protest

Has the business world in the UK gone MAD.

As a business man I understand that costs are fundamental to profit and loss.

But there is one underlying  fact about the final cost.  If it cost 30 pence to product an item then I will need to be at least 31p so that you make a profit.

This week I sat in front of the TV and transfixed by a conversation between a farmer and a big UK food retailer.  The basics are the big supermarkets and government agreed that it cost the farmers 30p to produce a liter of milk, but the farmers are being told that they will only be paid 26p for that milk.

Now the excuse was that we the public should get a better price on milk and the farmers (not big supermarkets) should make a loss.
This is about the most stupid idea I have heard this year and this is a case of the big boys bullying the small boy in the playground and at the moment the madness is working.  The only option for the farmers is to stop producing milk or go bankrupt.

How a retailer can sit back and make billions in profits can ask another company to make a loss it total unbelievable , but seeing how big business it I am not surprised.
Please tell me what your think about this or are you I a similar position as the UK farmers.

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