View Full Version : Cheap Milk Makes Austrian Farmers Angry

Wednesday, November 12th, 2008, 06:53 PM
Cheap milk makes farmers angry (http://www.austrianews.co.uk/2008/11/11/cheap-milk-makes-farmers-angry/)

Everything becomes more expensive. Only the milk is becoming cheaper. Yesterday the discount store chain “Hofer” decreased the price for 20 cent. Now also other discount stores and supermarkets think about a price cut.

A situation which is not really a big motivation for famers who are selling milk. The reason for the cheap milk is an excess supply on the European market.

Also the president of the chamber of agriculture is not happy about the development on the milk market. He complains that chain stores are trying to pit the dairies against eachother.

“Cheap and undeclared goods from abroad cause an overpressure for butter and cheese. This is not alright. I don’t believe the consumer is happy about the cheap prices for such kind of quality”, confirms the president. But he also admit that a labour dispute wouldn’t be useful.

It's a tough life for farmers nowadays, because everything in the suparmarkets is cheaper. But not necessarily better quality.

Wednesday, November 12th, 2008, 07:52 PM
Hofer (for all those not acquainted with the Austrian supermarket landscape - the Austrian branches of ALDI go by the name of "Hofer") most of the times don't get their stuff from elsewhere, instead they just relabel them without the "brand name" - most of their dilutive juices, f. ex., are still manufactured by Spitz in Linz. ;)

What makes Hofer/ALDI able to offer goods at ridiculously low prices are three things:

- They agree to be responsible for their own transportation. As such, they do not have to pay for the transport of their goods, and already save out on one merchant down the line: They have a more direct line to the manufacturer, hence it will be cheaper for them.

- They have little to no decoration of any type in any of their outlets. The decoration of a Hofer/ALDI store a schoolkid could probably afford with their pocket money. As such, they save on a lot of expenses that way, and are able to offer their goods at a somewhat cheaper price: This strategy has helped them become one of the leading firms, it goes back right to the days when Albrecht brothers just had the parental shop.

- They "unlabel" certain goods. Many manufacturers will produce products for different ends of the market --- this is oft especially visible in the UK, where own-branding is a common phenomenon, and even under own-brands there is a cheap, a medium-market and a ridiculously upmarket version. ALDI/Hofer use the fact that most of the times, the cheaper ones are of equal quality as the more expensive ones, and offer these cheaper ones for sale.

This is how they are able to provide goods at such low prices. Has nothing to do with importing milk from Gudaloupe or Burkina Faso --- just a matter of marketing strategies that have been refined for over 40 years. And as the "credit crunch" hits, they are able to take them to the laughable extreme, because they know that people will look to get their goods as cheap as possible, and by word-of-mouth already know that ALDI/Hofer or LIDL are a good deal cheaper than most non-discount supermarket chains. ;)

Uwe Jens Lornsen
Sunday, August 19th, 2018, 12:15 PM
In France a milk farmer committed suicide in December 2016 .

A wave of letters of solidarity is said have been written to the agricultural ministers in the European Union
in March 2017 .

Swedish language:

Systemet med ohämmad avreglering och överproduktion måste komma till ett slut, betonar Boris Gondouin.


I personally do not drink much fresh milk anymore , since drinking milk for some reasons
makes me rush to the toilet since about one year ago .
Something has changed processing milk it seems .

We have since a decade a new kind of pasteurization, that keeps fresh milk weeks longer conserved ;
probably I should try H-Milk , since my finger nails are starting to get crumpy .