Farmers have been squeezed by the supply chain into accepting prices that are in some cases the same price as has been for the past 20 years. But at the same time the purchasing power of the Australian Dollar has not historically been high so you are getting paid a little less than you were 20 years ago at the same prices at the farm gate.
Purchasing agents at farm gate at prices are buying product around 20 to 30 odd cents per kilogram of produce that the Supply Chain, the duopoly of Supermarkets in Australia, charge upwards of $5 to $6 a kilo for and then says support the local supply chains doing this. I'm actually proud of your stance, so long as you don't complain about being paid nothing for your produce and that you should get more money from the Supply Chain purchasing agents. They know the rules of economics and are squeezing both ends tighter as they know neither the primary producer nor the consumer in Australia has any will to fight and press back. The consumer can fight back with his wallet and purchasing power once he is informed about the markets and how much power he really possesses that he doesn't yet realise to move markets. Primary producers have a tougher time as you are working as individuals against each other and the world, you should form a producers co-operative and hire collectively a sole sellers agent outlet to get you the price you want or move a huge volume of produce away from the Supermarkets and to any other buyers domestic or offshore. With primary producers and consumers together squeezing back against the SuperMarkets the market will find a new balance without the Supermarkets taking the huge lions share of profit away from both the primary produce and the consumer.
Heres a tip though, grow what the market demands and can not get enough of. For example, Australian malt quality barley is absolutely tanking on the international markets. Why? Because Australian primary producers are growing the wrong types of barley that makes malts the world is not wanting nor are they demanding. It will be two or three more cross-bred generations of barley until we can get Aussie grain quality up to the level of protein content, germ quality and lower dextrinous malts that the world brewing market is demanding. There is a ton of high quality, and inexpensive barley on the international markets, subsidy or no subsidy. If you had a superior product the buyers would pay your higher price. Simple rules. If you can supply higher quality at the same price of lower quality grain you can unload as much grain as the purchasers can take up. You can now make more on the margins of the higher volumes.
Now the people on the bulk buy for hops are not buying Graham Sanders, some of the people on the bulk could probably not give a dogs rear end about Graham, they are buying hops pure and simple. If Graham was making a huge profit from the buy like the Supply Chain is doing then yes as a buyer you could rationalise and consider the person you are buying from in addition to the product. But he isn't so you won't be supporting Graham Sanders if you bulk buy, you won't be funding his radio program or be spreading his message. The only thing Graham Sanders will get is his own little ego boost in his own world outside of yours and a smirky smile for stirring up the shit pot for a short while once every few years or so. Lets be honest, six months from now if you bulk buy some hops and are making a beer, your umpteenth with the hops are you going to be thinking about Graham Sanders? Most Likely Not. The only thing this is simply put is an opportunity to try something you have never tried before and perhaps may never readily have the opportunity to try again. If that interests you then you jump on board, if it does not then you don't. But don't let a radio shock jock stir you up into idealism, idealogical feelings, or a need to feel threatened for what you think or do. You should be mature enough to handle that.
Cheers,
Brewer Pete
