Published: 28 Sep 11 15:40 CET | Print version
Online: http://www.thelocal.se/36412/20110928/
As Sweden's butter shortage enters its second month, the dairy industry is still struggling to meet demand and shelves in supermarkets up and down the country remain empty. Blame is being directed at the new back to basics cooking trend, full fat diet fads and young people turning their backs on farming.
What do you think? Leave your comment below.
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What Arla does not mention is that they have used their monopoly situation to force down the price they pay to farmers so that they have switched from dairy farming to meat or arable farming.
The real reason for a shortage of milk for making butter. is the greed of Arla
o.O Are you really blaming a company that is offering one of tge cheapest Milk in Sweden. Monopoly ? Do you know the definition of Monopoly ? Monopoly is what Systembolaget is not Arla, Arla has competitors in the field, so you are sadly mistaken. And other then that, Greed ? ... I think you need to read a business book what you are talking about is prisledare in Swedish, it basically means that their business strategy would be to be the cheapest in the Market nothing wrong or illegal about that.
Even with EU grants which are available for normal and organic dairy unit, it costs alot of money to fit out a dairy farm and you neeed an economy of scale, most small Swedish farms nestled in little pockets of forest just can do it, with 10-20 hectares.
The biggest problems is the consumer being unwilling to pay more for the product and not appreciating where it comes from and how little the producer ie the farmer actually gets, it's certainly alot less than Arla / ICA etc.. If the moaning public paid more, there wouldn't be any shortage.
thanks for reading, Skogsbo (worked on a dairy farm in the UK long ago, now have cattle for beef and forest here, with no intention of even considering dairy!!).
Thank you for your reply it actually was an interesting read, I am not sure about the prices and stuff but I would love some insight as i actually am studying in the field of Business would be interested to know more any links or info you could supply is most welcomed thank you for taking your time to reply =D
Why not put up the price?
And then while you're about it start importing some nouveaux products from the rest of Europe or even the world!
I for one would just love to but some butter that comes from France, the UK, Spain, anywhere in fact. It seems most places only stock Arla products. And dont get me started on Tetra-pakI would like to buy 2 4 or even 6 litres of milk/filmjolk/other at a time.
On Arla products, I think it's fairly likely there is a deal between the likes of Ica and Arla, that or one cheif exec, has moved from another and they are helping each other out. Ica is good for somethings do flex and stock local, then other things it is zero variety.
Yes, bjorkon, just put the price up I agree, that's supply and demand, how it should work. The shop will gain though, not the end user.
Neoz717, I will post some stuff at weekend, too much on. If you want a curious story google Wensleydale creamery, the local farmers bought it out years ago, because of the milk monopoly issues and now most local milk goes there and they make shed loads of Cheeeesssseeee (wallace and gromit style), as well as creating lots of local jobs.
On the other hand we should not let the Swedes immigrate to the U.S. we should ship some of America's fat cows to Sweden. We could drop them with parachutes strapped to their backs, let the military C-17 fly low and send the fat cows out the back sprinkling the dairy field below. I can see it now all the pink utters dotting the sky. This of course will also help trans-Atlantic relations and that whole spying thing will be forgotten. Remember you heard it here first on The Local!
Besides I think then we would be importing the American obesity disease to Sweden. I have this sneaky feeling that all the chemicals the cattle industry pumps into the animals in the US (such as growth hormones for instance) just continue to work on people's bodies after they have consumed the products.
But your suggestion is funny anyway :)
hmmmm...you have a point there. I would think, NO, this would be an elit team of harden free range cows, who would be trained in the Buddhist ways of the natural being. Yeah, it couldn't be a chemical-cow it would have to be the utter ones.
Arla is the 7th biggest dairy company in the world, by far the biggest in Scandinavia and in the UK as it owns Express dairies. It does use it's buying power and near monopolistic position to force farmers to sell milk cheap. Like Skogsbo, I come from a farming family and grew up on a dairy farm in the UK and I am well aware of the practices employed by Arla and others like them. The fact is that a lot of milk, especially from small producers , is being sold below cost.
While the general public accept that food prices have risen because of poor harvests and increased demand, they still expect to pay the same price for milk as they did 10 years ago. Cows do not only need grass to produce milk but cow cake and other feed which is increasing in cost all the time. Milk products are a good source of nutrients that are essential for health.
If the dairy companies do not stop pandering to the pressure from consumers and supermarkets to keep the end price low, more and more farmers will leave dairy farming and we will have less and less butter, cream and other natural products available.
It's convenient for Arla to blame fad diets and tv shows, instead of owning up to the fact that they're screwing over farmers to the point of them not being able to profit from making butter anymore.
One of the benefits on a social level is the fact that dairies are still mostly run by small farmers and are grass based, which is very sustainable and one can run independantly. Now if only we can get people to skip the middle man and get their products directly from the farm and small producers! The price wouldn't necessarily go up, it would just go to the farmers and their products. Take pride in your local food economy! Support your local farmers! Go grass based dairy!