Milk prices: blocking of central purchasing in the west

[Christophe]

Yes, but that does not mean that it is "not profitable" automatically ... quite the contrary ...

I believe there is a "saying rumor" among manufacturers saying:

"If something new works in France, it's because it will work everywhere else!"

... or was it with Alsace? I do not know anymore...

[elephant]

Well, it's industrial, actually, experience made, convince French manufacturers to change habits (in the broad sense) is not easy. Much easier with the Belgians.

Europe is X times 22 mentalities: I was paid to know it. If changing mentality is first of all a large advertising budget, it is not within the reach of farmers, even federated. It would surprise me that a large part of the European commercial potential "waits" for milk from the farm near their hypermarket.

[C moa]

I just stumbled upon this representation in the world.



It seems that the dark green corresponds to the gross margin but I have some questions about its calculation because the representation does not present the cost of each step but good ....

If all that is right, I make two findings hot:
1 - It is better to be a distributor than a farmer (but that we already knew) because in cumulated distributor + radius we arrive at 45% of margin. It is very well paid distributor !!!
2 - It is better to be a processor than a farmer. Here we talk about turning milk into ... milk not cheese, butter, cream or other. 25% to go from a whole milk in bulk to a semi skimmed milk cardboard or bottle, I think it is well paid too ....

[pb2488]

The last percent 5 is the VAT. It still leaves 40% margin for branded milk .... there is also a sacred difference in brand milk and no brand ...
however, they could have detailed the costs and expenses.

[elephant]

Logically, brand milk has significant marketing costs: packaging, merchandising, advertising, company executives, image campaign, etc.
Distributor's milk is in some ways "sold" before being purchased: price is the main driver of the purchasing decision.