n Farmer’s Weekly - Quality always wins : on the market floor
|Article Title||Quality always wins : on the market floor|
|© Publisher:||Caxton Magazines|
|Publication Date||Jul 2016|
As noted last issue, the old control boards called the shots when it came to determining prices, because they also determined supply. After their demise, the free market ensured that 'true' prices could prevail. This placed quality at the head of the list of price-forming factors. Supply and demand also came into their own right, as did many other considerations. The impact on farmers was huge. Without the artificial protection of the control boards, each found themselves thrown into the proverbial deep end. It was sink or swim. The premium quality brands (farmers) soon established themselves as the leaders in the market place. Through quality products they remained price makers. Farmers who could not provide the same quality standards soon became price takers. This remains the status quo. A walk through any major market will show how the top brands are sold at better prices than others. In some cases, the brand is so strong that the buyers don't even haggle over the price. They simply accept it and are usually grateful to have obtained the product.
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