ChatterBank2 mins ago
price of milk
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For more on marking an answer as the "Best Answer", please visit our FAQ.Milk - big debate at present in farming about the treatment of dairy farmers and the price they get in comparison to the shelf price.
If you want a background on it all, read up at: http://www.fwi.co.uk/HOMEPAGE/ARTICLES/213/1_1/13_98/Dairy%20-%20Milk%20prices.htm which is the online Farmers Weekly.
Estimated production cost per litre is 20p. The milk processors - Arla, Dairy Crest, Wisemans, etc - are typically paying 18.5 p a litre.
Does that make sense? Some of the supermarkets are getting milk direct from farm gates, but not at much higher prices, as milk is a food that is seen as a benchmark for pricing in stores, and if consumers know it is cheaper in store B, rather than their usual storeA, off they go and get the cheaper product - and so do the restof the shopping there as well.
Bananas are in the same category. Often called known value products or similar as they are the sort of thing that keep shoppers loyal to one shop.