Recent comments by: jaydinsouth
Qlander ... might not be the best assumption. I've seen a lot smaller enterprises make just a big a loss and not the postive cash flow seen here. Hard to read too much into these things without more detail IMO.
All very nice and noble Tommo, but some things to consider: businesses pressure suppliers yes for profit, but it also ensure the suppliers remain efficient. Guaranteed if they were never pressured they would still complain of pressure and low profits however it would be because they have lazy business practices. Some suppliers of fresh produce actually make big margins. If you're from the country I presume you know this. But yes much more volatility. Can be feast or famine. Oh, and you'll find they do treat themselves the same way. Tell their business units to cut costs ... business.
I'm with Bushie Bill re the spirit of this, noting "better value" could also include considerations of freshness depending on the product.
And Kanzi, I'm not a farmer although have had family on the land (across livestock, cropping, and horticulture). And my entire working life I have never been a member of a union, or hidden behind any award. Happy for whoever I work for, whether that be myself or others, pay me according to the quality of work I do.
So Matt. A business is successful so we clip their wings so they go backwards right?
My theory re market power is simply this: no supplier has to deal with WOW if they don't want to. They make decisions. I've seen all sorts of businesses decide NOT to deal with the likes of WOW, Harvey Norman, pick a name, as they don't want the risk of over reliance on one customer or the lower margins that such deals dictate. Business decisions.
I've seen other businesses determine to deal based on term contracts that work for them.
Business people need to make business decisions that are smart.
People will by what they believe is good value for money. Which with wine is good flavour at a good price. Let's face facts. Most consumers don't need or want a bottle to cellar for the next 10+ years. They buy because they have a need that weekend. And will buy something they can rely on at decent price.
Casks sell well as the wines are almost always easy drinking, nice flavour, and good value. Exactly what a lot of consumers want. When the choice is that or a $50 bottle that one might like or not why take the risk.
I visited a farmer in SA (YP) mid last year. He said fairly close to this: "I don't know why the government provides 'exceptional circumstances' payments to farmers. In the area they need it there is absolutely nothing exceptional about drought".
There are farmers, and there are business people. The best farmers are both. A large number of farmers on the edge are possibly there as they had too much of a love for debt and some poor seasons caught them out. Easy to blame the weather. Sometimes self help is also needed.
Buying brands doesn't make you another Fonterra. If WBC, MG, whoever, had vision and strategy that drove growth overseas it would happen. They don't, so it doesn't. Take A2, fancy milk, started with a vision, good marketing, and is succeeding. Maybe one of the Aussie companies could try the same, regardless of who owns them.
Grow up Jock. Bega can sell their shares to whoever is prepared to pay for them.
With you there Bushie. Owned by profitable Australian listed CCA they certainly have the funds to invest if it is indeed worthwhile. Fact is, they will ask the government as nothing to lose if they don't.
" If those assets can potentially be misused by a foreign entity they can potentially be misused by an Australian entity"
Something those against the deal (or most other foreign transactions) just don't get. Being "Australian" is nice however the same asset being "American", "Canadian", "Chinese", or whatever would make no difference at all in the vast majority of cases.
Arnold, because under normal commercial terms payments are rarely done COD (primarily the retail front). A farm is a business, and should be operated as such. If you're not happy with payment terms put in in bags out the front of your property to sell for cash and see how well that goes. If it doesn't go so well, which it won't maybe you're onto an ok deal.
So Jock and Mug you're saying that by their various blendings the grain merchants are selling what the market doesn't want?
Or has the market changed and some farmers don't want to?
Wool ... cotton ... similar discussions about market position / quality in the past. The world is not static and farmers can't be too.