Thursday 12 July 2012

In response to The Grocer's announcment that "David Cameron announces £5m fund to help dairy farmers improve competitiveness with 'game-changing' innovation.



Dear Grocer,

If we may be so bold: a very big thumbs down to you for publishing this. 

Why? Two reasons:

1, Because this has all the hallmarks of a classic hot-air, knee-jerk "let's look speedy & pro-active in the face of a crisis" initiative from a PR driven government.

There is no game changing innovation contained in the announcement- just a tiny uncommitted sum put forward for great ideas from farmers - a Dragons Den style shiny bauble of a reward dangling in front of suffering dairy farmers.

2, because game-changing innovations are not what is needed, and frankly reading such piffle, I dont know whether to laugh of cry.

Milk is fundamentally undervalued, and this is for two main reasons:  a, due to a ruthless discounting culture amongst retailers (especially on staple lines: for heaven's sake, it is cheaper than bottled water and most beers), and partly due to a now deeply seated "why pay more?" culture for which both retailers and consumers are responsible.

The game changing idea that is needed is therefore threefold:

a, for one of the main grocery retailers to respond to this crisis by to raise the price of their milk, and i would suggest that they do it under a "WHY WE pay more" strapline - a doubling of the price of milk would cost families on average (assuming a consumption of 3 litres per week) approximately 170p - is this so bad?

b, that retailers have a new price structure for payments to dairy farmers that involves them receiving a share of the retail price of a carton of milk, POST the direct production costs of the product.

c, that consumers are educated to understand that buying milk for 60p per litre is just too low for what is a highly nutritious product and that if they want to keep their farmers in business, then they should pay more for this great product.

For The Grocer to take such a passive line on this announcement will only serve to propagate the myth that you are but a figleaf to the supermarkets.

Yours sincerely,

The Farm Direct Team.

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