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The Forum > Article Comments > Woolworths: the farmer’s friend! > Comments

Woolworths: the farmer’s friend! : Comments

By Alan Matheson, published 19/1/2007

Corporations like Woolworths, rarely wake up one morning, and decide it would be a good idea to dump a day’s profits into the bank accounts of organisations like the CWA.

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The employees of my local-small-township grocery store do their own weekly shop at Woolworths some 15km away. Why? Because their bill is about 20% less, the choice is much greater, and a lot of the stuff is fresher. There are upsides to supermarkets alongside the problems they create in their procurement methods.

I would like to see honest facts and figures about the relative percentages of price that go to the producers, transporters, and the wholesale/retail end of distribution. My guess is that more than a half of what something costs goes towards distribution. I am not sure there is a lot to be gained by insisting on a less efficient system of distribution such as thousands of street corner shops.

We need to curb sharp and destructive procurement practices, but making everything cost 20% more to the consumer will not solve the problems.
Posted by Fencepost, Friday, 19 January 2007 6:11:44 PM
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The Big Supermarkets will eventually have the power of oil companies.They force small specialised competitors from the market by selling selected lines at a loss,and subsidise these selected lines with the profits from others.It only takes a few months to send a small green grocer broke.

Then they use their buying power to dictate to farmers and other suppliers the wholesale price.Small producers just go broke.

When they have eliminated all the small competitors,they simply jack the price under the ruse of competition.What we will really have then is a cartel,who have an unstated agreement that prices should not fall below a certain level.The customer is then screwed.

Competition policy like many Govt initiatives is doing the exact opposite.Now these big companies like Coles and Wollies have so much power,that Govts dare not criticise them.

What the small farmers should do is form a co-operative and have a string of retail outlets in the cities.They then can compete with the big sharks and enjoy much greater margins themselves.Some I've spoken to have said it is just too hard.Well just find some ex Coles/Wollies executives who have all the knowledge and start with one small step.Then we all will benefit.
Posted by Arjay, Friday, 19 January 2007 7:03:35 PM
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I WON"T SHOP THERE!
Posted by Rainier, Friday, 19 January 2007 7:30:31 PM
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Better something than nothing however Woolworths, Westpace et al have departments dedicated to skiting on about how wonderful they all are. It is a concept called ( you guessed it) CORPORATE CULTURE which engages in INCULTUARATION. This is brainwashing of its staff and its customers and the wider community.

A way forward and to lessen the effects of big companies and the drought is to be found in the current policies and programmes developed by Pat Byrne and Jim Manwaring and a team of Australian economists, famrers and manufacturers who contribute to the National Civic Council. View their website ; join with them and make a difference. The outlook is traditional Catholic social doctrine in theory and practice:

http://www.newsweekly.com.au/
Posted by Michael Southern Cross, Friday, 19 January 2007 7:44:29 PM
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Better something than nothing however Woolworths, Westpace et al have departments dedicated to skiting on about how wonderful they all are. It is a concept called ( you guessed it) CORPORATE CULTURE which engages in INCULTURATION. This is brainwashing of its staff and its customers and the wider community.

A way forward, and to lessen the effects of big companies and the drought, is to be found in the current policies and programmes developed by Pat Byrne and Jim Manwaring and a team of Australian economists, famrers and manufacturers who contribute to the National Civic Council. View their website ; join with them and make a difference. The outlook is traditional Catholic social doctrine in theory and practice:

http://www.newsweekly.com.au/
Posted by Michael Southern Cross, Friday, 19 January 2007 7:45:21 PM
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I like the idea from Arjay re-farmer's cooperatives.

I was only half serious about the parking idea, but I think you got my point.

Farmer's cooperatives could be assisted by local government in providing land or real estate for co op markets and networks to organise the co ops.

I'm sure some from the CWA, church groups, and some and apprentices or on centrelink payments would be willing to either volunteer or help out for with some kind of voucher system or a "top-up" allowance for their assistance.

Farmers and consumers can cut the middle man if we are smart. Imagine cheaper prices and knowing that the farmers are not being ripped off.
Posted by saintfletcher, Friday, 19 January 2007 11:42:01 PM
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