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Tesco "cheap Food Era Is Over"


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HOLA441
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HOLA442

Tesco boss spills the beans

Well he's giving a cover story "our customers are demanding we pay farmers a decent whack" but this is surely the sign that inflation is about to let rip?

(not that food prices have remained stable - I'm constantly shocked how much basics like spuds and veg have gone up)

They would say that wouldn't they....it is in their interests that people become more willing and accepting in paying more for food, they are sowing a seed of what they are hoping will come, to make us think high food prices is normal and so must be paid........higher profits for them if we start believing their propaganda paying their higher prices and fall into their trap. ;)

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HOLA443

They would say that wouldn't they....it is in their interests that people become more willing and accepting in paying more for food, they are sowing a seed of what they are hoping will come, to make us think high food prices is normal and so must be paid........higher profits for them if we start believing their propaganda paying their higher prices and fall into their trap. ;)

High food prices are normal. We're paying them indirectly through agricultural subsidies, tax credits to NMW workers, HB, etc.

He is just telling the proles to 'suck it up'.

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HOLA444

Its not a story of Supermarkets paying their fair wack.

Its a story of mega farms and Corporations using their financial muscle to force small farmers to accept low prices or die...they die or leave the industry, leaving the farm for the Mega farmer.

Some day, maybe its now, this process will halt as the market has all the mega farms it can cope with, subsidies are no longer affordable, therefore, we have the megafarms now dictating the price.

Meanwhile we are awash with Golf Courses and ex farm playgrounds.

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HOLA445
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HOLA446

Its not a story of Supermarkets paying their fair wack.

Its a story of mega farms and Corporations using their financial muscle to force small farmers to accept low prices or die...they die or leave the industry, leaving the farm for the Mega farmer.

Some day, maybe its now, this process will halt as the market has all the mega farms it can cope with, subsidies are no longer affordable, therefore, we have the megafarms now dictating the price.

Meanwhile we are awash with Golf Courses and ex farm playgrounds.

I remember talking to a farmer who used to have a dairy herd, Now he does livery. There is more money to be made out of the rich that have horses than growing food. He said he wished he had done it years ago.

Sounds perfectly sustainable to me.

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HOLA447

(not that food prices have remained stable - I'm constantly shocked how much basics like spuds and veg have gone up)

Food is one of those things that genuinely moves both up and down. Of course the long-term trend is upwards (inflation), but downwards movements can also be big over short to medium terms. Example: I can buy pasta 30% cheaper than it was four or five years ago when some poor crops had led to wheat prices shooting up.

What might be more interesting is the long-term trend vs. incomes. The proportion of our incomes we have to spend on food has fallen through the floor over any longer-term measure. If that trend goes into reverse we could indeed call it the end of the era of cheap food.

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HOLA448

They would say that wouldn't they....it is in their interests that people become more willing and accepting in paying more for food, they are sowing a seed of what they are hoping will come, to make us think high food prices is normal and so must be paid........higher profits for them if we start believing their propaganda paying their higher prices and fall into their trap. ;)

Food retailing is hugely competitive. Tescos latest profit margins are 2.14% and falling. Sainsburys (2.63%) and Morrisons (3.57%) look pretty thin too, and Ocado's is negative. The only way you're going to get food cheaper is if you can dispense with all the food safety standards they have to follow, or perhaps get some juicy extra subsidies not available to them.

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HOLA449

Recently ventured back into Tesco's after six months and couldn't believe how poor the food (meat especially) was compared to the other places I frequent, namely Aldi. Lidl, Sainsburys (basic range) and various markets and independent butchers. Tesco have been taking their regular customers for a ride for a while from what I can see. It was like venturing back in a Soviet union shop or war time.

Edited by aSecureTenant
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HOLA4410

Tesco boss spills the beans

Well he's giving a cover story "our customers are demanding we pay farmers a decent whack" but this is surely the sign that inflation is about to let rip?

(not that food prices have remained stable - I'm constantly shocked how much basics like spuds and veg have gone up)

It's telling that the boss of an organisation that's made it a point of pride that they provide super-cheap food admits that prices are going to have to start to rise.

Also rather disingenuous to claim it's simply all about being more fair to food producers - market conditions are making food more expensive. Market forces and conditions mean that the likes of Tesco are no longer able to dictate prices to suppliers in the way that they once were. I suspect that a lot of their strongarm tactics which are reputed to have squeezed smaller farming operations out the farming business are about to reap a whole host of headaches for them.

As food purchasing takes a larger share of income, it will be rather harder to hide the reality of inflation.

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HOLA4411

Recently ventured back into Tesco's after six months and couldn't believe how poor the food (meat especially) was compared to the other places I frequent, namely Aldi. Lidl, Sainsburys (basic range) and various markets and independent butchers. Tesco have been taking their regular customers for a ride for a while from what I can see. It was like venturing back in a Soviet union shop or war time.

Or a Tesco's back in the 70s/80s?

Tesco's is a mystery to me. Offering neither quality, nor value. Nor even some trade-off of the two

As for reported profit margins, when you're big enough and liquid enough, they can be more or less whatever you want them to be.

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HOLA4412

It is the traders and the speculators that bet on the prices that make more from the food than anyone else...all they do is buy it and sell it at the prices that they set....zero sum game.

Some if they want something specific to eat they will pay any price for something that comes from any place....others will buy only when local, in season and when there is a good enough supply to sell at a good price.......there are plenty of ways to cook and eat plenty of fresh healthy foods that are just as good if not better than something that has travelled many, sometimes hundreds of miles at high cost.....you pays your money and you takes your choice. ;)

Edited by winkie
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HOLA4413
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HOLA4414

Or a Tesco's back in the 70s/80s?

Tesco's is a mystery to me. Offering neither quality, nor value. Nor even some trade-off of the two

As for reported profit margins, when you're big enough and liquid enough, they can be more or less whatever you want them to be.

Agree on the whole.

Some of the half price meat offers can be really good though. Rump steak for £7/KG and it was some of the best I've had.

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HOLA4415

Agree on the whole.

Some of the half price meat offers can be really good though. Rump steak for £7/KG and it was some of the best I've had.

Tescos is good for a one stop shop if you don't know an area. Otherwise, agree that there are better quality suppliers, and lower cost suppliers out there.

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HOLA4416

Agree on the whole.

Some of the half price meat offers can be really good though. Rump steak for £7/KG and it was some of the best I've had.

If I buy meat in just about any supermarket, I end up with two nice bits and a piece of scrag...rarely had all nice bits...except from my local farm shop...who is cheaper and always excellent...you know, meat pies with meat in ( rather than a coating round the edge of the pastry), sausages that fill you up and dont drip half a pint of fat, bacon that remains the size you put it in the pan...that sort of thing.

The good thing about supermarket meat is that if comes in handy stackable packs...easy for the fridge.

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HOLA4417

The era of Aldi and lidl is here. Tesco will have no chance just like they had no chance in Japan. (smaller supermarkets make more money)

Waitrose will keep their customer base, will always be those that can afford to pay more for the same or less....the cost efficient stores that are able to cut their margins, shop wisely, buy in bulk fewer brand names and choices and provide their customers with what they want, good food of good quality and value will survive well....pile em high sell em quickly......the middle try and be all things to all people. ;)

It never ceases to amaze me the amount of lines and items a supermarket carries today.....The average number of products carried by a typical supermarket has more than tripled since 1980, from 15,000 to 50,000..... :o

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HOLA4418

If I buy meat in just about any supermarket, I end up with two nice bits and a piece of scrag...rarely had all nice bits...except from my local farm shop...who is cheaper and always excellent...you know, meat pies with meat in ( rather than a coating round the edge of the pastry), sausages that fill you up and dont drip half a pint of fat, bacon that remains the size you put it in the pan...that sort of thing.

The good thing about supermarket meat is that if comes in handy stackable packs...easy for the fridge.

I'm surprised meat is cheaper at your farm shop - jealous!

I live in a pretty cheap area and all the nearby(ish) butchers (there's very few left), cost quite a bit more than the supermarkets - even M&S and Waitrose are cheaper for some cuts. We have a farmers' market but the prices are ridiculous - wonderful pies, though, for a treat.

I'd love to find a good, reliable alternative to the supermarkets for meat but around here it's hopeless.

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HOLA4419

I'm surprised meat is cheaper at your farm shop - jealous!

I live in a pretty cheap area and all the nearby(ish) butchers (there's very few left), cost quite a bit more than the supermarkets - even M&S and Waitrose are cheaper for some cuts. We have a farmers' market but the prices are ridiculous - wonderful pies, though, for a treat.

I'd love to find a good, reliable alternative to the supermarkets for meat but around here it's hopeless.

There are some mobile, known suppliers that sell from their van their own meat and others meat, local....some visit different towns and markets...always seem busy, must be good or else no repeat buyers. ;)

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HOLA4420
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HOLA4421

I'm surprised meat is cheaper at your farm shop - jealous!

I live in a pretty cheap area and all the nearby(ish) butchers (there's very few left), cost quite a bit more than the supermarkets - even M&S and Waitrose are cheaper for some cuts. We have a farmers' market but the prices are ridiculous - wonderful pies, though, for a treat.

I'd love to find a good, reliable alternative to the supermarkets for meat but around here it's hopeless.

well, I say cheaper, but I think I really mean I dont feel cheated when I cook the stuff...bacon for example, £2 for a good few streaky slices at Iceland, you plac it on the grill, then when cooked, its all shrivelled up and you can barely cover a thin slice with it. the butchers stuff, though...thats a different story.

Bacon is £7.00 per Kilo at my local.

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HOLA4422

Tesco and Clarke might well try to blag that the "cheap food era is over" but there still seems to be plenty of scope for new competition and new entrants to the UK market as apart from the Aldis and Lidls etc there are some good supermarkets from far eastern countries opening up and offering more variety and cheaper than the likes of Tesco.

Edited by billybong
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HOLA4423

well, I say cheaper, but I think I really mean I dont feel cheated when I cook the stuff...bacon for example, £2 for a good few streaky slices at Iceland, you plac it on the grill, then when cooked, its all shrivelled up and you can barely cover a thin slice with it. the butchers stuff, though...thats a different story.

Bacon is £7.00 per Kilo at my local.

£7/kg is really good for bacon that doesn't shrink!

I've been trying loads of different bacon recently. All the prepackaged stuff seems to give out white goo, even the expensive stuff and even if it's dry cured, but some are much better than others regarding goo.

At my farmers' market it's £16/kg - delicious but wouldn't pay that again - nice dripping and no goo.

£9/kg at the last butcher I tried - it didn't shrink but it was awful.

Anyway, I've finally cracked it - from Morrisons meat loose meat counter of all places! - £9/kg for dry cure "Old English" back bacon bought as loose slices - totally different to the stuff they sell in the packs - doesn't shrink and gives off loads of clear dripping - no white gunk in sight.

Edited by oldsport
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HOLA4424

Tesco boss spills the beans

Well he's giving a cover story "our customers are demanding we pay farmers a decent whack" but this is surely the sign that inflation is about to let rip?

(not that food prices have remained stable - I'm constantly shocked how much basics like spuds and veg have gone up)

Depends what he means by various terms. I mean, by percentage of income food is cheaper now than at almost any point in history, including ten years ago (uptick starts around 2008). By global standards its still phenomenally cheap, even in the developed world - I was shocked at prices in North American supermarkets this year, about twice as much.

We can go back to income percentages of the 90s and still have relatively cheap food, but nominally higher prices than we've seen before. In my case, Although some things are definitely getting more expensive (tomatoes in sainsburys went from 60p to 80p for a pack earlier this year, and last week changed from about 6 in the pack to 4), can till do a weekly shop for one for under £12 (usually under £10), so can't really complain.

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HOLA4425

£7/kg is really good for bacon that doesn't shrink!

I've been trying loads of different bacon recently. All the prepackaged stuff seems to give out white goo, even the expensive stuff and even if it's dry cured, but some are much better than others regarding goo.

At my farmers' market it's £16/kg - delicious but wouldn't pay that again - nice dripping and no goo.

£9/kg at the last butcher I tried - it didn't shrink but it was awful.

Anyway, I've finally cracked it - from Morrisons meat loose meat counter of all places! - £9/kg for dry cure "Old Fashioned" back bacon bought as loose slices - totally different to the stuff they sell in the packs - doesn't shrink and gives off loads of clear dripping - no white gunk in sight.

caught me out again...£7.80 per kilo for smoked streakey

http://www.wickfarmmeats.co.uk/gammon-bacon

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