Marmite & Mayonnaise - the return of UK production?

Anonymous

http://www.bbc.co.uk/news/business-37639518

16% fall in sterling means a steep price hike for supermarkets importing food who already operate on tight margins.

Is there a chance for the UK producer to get stuck in, across all industries?

Tashman

As long as the producer gets their raw materials from the UK too otherwise it's just moving the problem 1 step down the food chain.

mrfpb

As our farmers will no longer get CAP payments they may find themselves working harder for a living anyway, so we may get more product from them.

meanredspider

And so long as the labour is cheap. There's a pitiful supply in Eastern Europe - oh, wait a minute...

Ultimately, unless you have shares on the FTSE, this will mostly cost us money. Stuff sourced from the UK will cost the same and stuff imported (including fuel) will be more expensive. So long as this doesn't also drive up interest rates too.

Hopefully it will mean that apples in the supermarket come from Kent and not S Africa or NZ

Redbaron1

Does that mean we will now only get vegemite, my nan would have turned in her grave. "I don't want any of that foreign muck" was her favourite quote, she much preferred proper English food of polish gammon, Kenyan pineapple and chips from Irish potatoes.

rick_chasey

Who wants lessons in the basic advantages of trade and the disadvantages of autarky? Anyone?

fenix

Pretty sure vegemite will be even MORE expensive than Marmite. How much have we lost vs the AUSD ?

Redbaron1

Rick Chasey wrote:

Who wants lessons in the basic advantages of trade and the disadvantages of autarky? Anyone?

No ta I prefer to live in a utopian dream

rick_chasey

Ha. My sister is a buyer at a big supermarket.

Basically once the hedges run out, prices across the board will rise.

Tashman

Rick Chasey wrote:

Ha. My sister is a buyer at a big supermarket.

Basically once the hedges run out, prices across the board will rise.

This entirely, supermarkets operate over a global economy and will have speculated trends in currancies all over.

surrey_commuter

Rick Chasey wrote:

Ha. My sister is a buyer at a big supermarket.

Basically once the hedges run out, prices across the board will rise.

Oh no!!! so when on the news they say that sterling falling is good because we will import less they did not explain this is because all imports will cost more so we (the consumer) will be forced to buy less?

pblakeney

oxoman wrote:

Don't believe most of what you hear from tesco and the bbc as its BS. Most of the products are uk based especially marmite its just tesco trying bully boy tactics to get suppliers to cut prices and pay more for shelf space, They did it a few years ago with Nestle and Reckitt Benckiser. They got delisted for a bit till tesco backed down. Tesco are the worse for this but all suppliers do it to some level. Tesco are big on getting you to make things cheaper by watering it down and i have known them to try to bully big manufacturers to make shops an inferior product under the shops own brand labels. For reference Marmite is made in Burton on Trent and the waste by-product is shipped in from all the local breweries.

Alternate theory. Marmite's owners are based in Holland. Their profits are accounted for in Euros.
A fall in the strength of the Pound = less Euros profit from the UK. Increase prices to match Pound drop.

meanredspider

oxoman wrote:

Don't believe most of what you hear from tesco and the bbc as its BS. Most of the products are uk based especially marmite For reference Marmite is made in Burton on Trent and the waste by-product is shipped in from all the local breweries.

So, hang on, it's Unilever that are asking for the price rise based upon the drop in value of £ vs €. And Unilever, according to what you say, that are asking the Brits to pay more for a product made in Britain because of exchange rate fluctuations. So how is that Tesco's fault?

Now, I happen to agree that Tesco often bully suppliers (they did way back when I worked for P&G) but, on this occasion, I don't see it's their fault.

cougie

Oil has risen about 20% in the last 6 months - so that increases the bottle, lid and transport costs.

Ingredients from Europe have also increased too - so that's a real cost.

None of this is Tescos or Unilevers fault. But they need to increase their prices.

If anyone's fault it's ours for Brexiting and crashing the pound. So that's who will pay. And it's not only going to be Unilever. Everything will increase.

This shouldn't be a surprise.

joelsim

cougie wrote:

Oil has risen about 20% in the last 6 months - so that increases the bottle, lid and transport costs.

Ingredients from Europe have also increased too - so that's a real cost.

None of this is Tescos or Unilevers fault. But they need to increase their prices.

If anyone's fault it's ours for Brexiting and crashing the pound. So that's who will pay. And it's not only going to be Unilever. Everything will increase.

This shouldn't be a surprise.

^This.

mr_goo

Joelsim wrote:

cougie wrote:

Oil has risen about 20% in the last 6 months - so that increases the bottle, lid and transport costs.

Ingredients from Europe have also increased too - so that's a real cost.

None of this is Tescos or Unilevers fault. But they need to increase their prices.

If anyone's fault it's ours for Brexiting and crashing the pound. So that's who will pay. And it's not only going to be Unilever. Everything will increase.

This shouldn't be a surprise.

^This.

Brexit. Brexit. Brexit. Yawn.
It's like a bl00dy scratched record.

surrey_commuter

Mr Goo wrote:

Joelsim wrote:

cougie wrote:

Oil has risen about 20% in the last 6 months - so that increases the bottle, lid and transport costs.

Ingredients from Europe have also increased too - so that's a real cost.

None of this is Tescos or Unilevers fault. But they need to increase their prices.

If anyone's fault it's ours for Brexiting and crashing the pound. So that's who will pay. And it's not only going to be Unilever. Everything will increase.

This shouldn't be a surprise.

^This.

Brexit. Brexit. Brexit. Yawn.
It's like a bl00dy scratched record.

My initial thought was that you still don't get it, but on reflection I am confident that the penny is beginning to drop. Yes Brexit and will continue to be Brexit for years to come. Are you starting to get the significance of leaving the EU yet?

cougie

Bloody experts and their facts eh?

rick_chasey

Mr Goo wrote:

Brexit. Brexit. Brexit. Yawn.
It's like a bl00dy scratched record.

What were you expecting?

surrey_commuter

Rick Chasey wrote:

Mr Goo wrote:

Brexit. Brexit. Brexit. Yawn.
It's like a bl00dy scratched record.

What were you expecting?

That is a very good question and I hope we get an answer

tangled_metal

I wonder if the average Brexit voter knew that it would be done to death on every online forum like it has, would they still have voted for it?

I reckon there'd be enough who weren't strongly Brexit who'd vote against their views just to prevent this future happening. We need the good terminator to go back in time and stop it! Farage accidentally found drowned in his own beer fueled, alcoholic vomit years before he forced Cameron's hand. Mystery man with red flashing eye seen leaving the area.

Sorry! It seems I'm more of a fantasist than the average Brexit campaigner!

PS I never seriously wish harm to anyone. It just feels that politics is dying at the altar of Brexit. What I mean it has taken over and raises it's head in every discussion. Some will even use spurious arguments.just to raise it. Yes it's a big deal but can we sometimes look at the other factors and politics aspects too?

tangled_metal

PS one more thing. Remainers, are you gloating a little bit? That you are being proven to.be more than a little bit right, is that cause for gloating? Seriously, we're likely to.get fcuked here and your smirking because you're right? Petty? Is there one dignified commentator on Brexit from either side? Not just on here but the wider sphere?

fenix

Id much rather that it was just moaning on forums than the real financial pain that exiting the EU will cause. I'd take that any day.

I see no reason to gloat. We have to pay the increased prices. Jobs will be lost. There is no reason to gloat at all. Its a mess.

TM what did you vote for?

tangled_metal

Remain. My personal view was a that there had been no.good argument to.leave so unless that came along I felt it safer to remain part of the EU.

I am not a strong.believer in the permanence of any institution including our union. If it's in our interest I'll support joining any.union or leaving an existing one. If no argument to one action I'll prefer not to.act.

Personally I have no issue with.immigration. I'm partly a product of immigration in and out of the UK/England. I've got a lot of European ancestry within say the last 5 generations but I don't associate myself as European or even British.

So which way did you vote fenix? Also why did you vote that way? Was it as you expected?

fenix

I voted remain too. Its madness to alienate ourselves from Europe when we do most of our business with them. Immigration was a red herring. I cant think of one exit reason to leave the EU. Even speaking to colleagues who did vote exit (who were few and far between seeing as we work for a business with HQ in Europe.... - all they had was 'thought it was time to shake things up' and 'fancy a change'.

Taking back control - was just meaningless jingoism.

surrey_commuter

Tangled Metal wrote:

PS one more thing. Remainers, are you gloating a little bit? That you are being proven to.be more than a little bit right, is that cause for gloating? Seriously, we're likely to.get fcuked here and your smirking because you're right? Petty? Is there one dignified commentator on Brexit from either side? Not just on here but the wider sphere?

I think it is people eager to prove themselves right rather than gloating. After the vitriolic nature of the campaign it was always going to end in one side shouting "I told you so". Mind you as Brexit leadership had told us it would lead to short term pain they could seize the initiative and shout "I told you so"

fat daddy

Surrey Commuter wrote:

it was always going to end in one side shouting "I told you so"

I wonder when the "end" is though ..... in a few years time, when the pound has found its natural resting place, markets have stabilised, we have new trade agreements and everything is back to the normal .... the Brexiters will be shouting "ha we told you so"

surrey_commuter

fat daddy wrote:

Surrey Commuter wrote:

it was always going to end in one side shouting "I told you so"

I wonder when the "end" is though ..... in a few years time, when the pound has found its natural resting place, markets have stabilised, we have new trade agreements and everything is back to the normal .... the Brexiters will be shouting "ha we told you so"

the short-term was always quoted as being 2030 - as actually leaving has been pushed back 9 months I guess it is 2031.

But there is no reason why the Camp Brexit don't shout "I told you so" with every bit of bad news. it would be the ballsiest bit of ownership in the history of politics - I for one would doff my cap to them

BTW - I genuinely don't get the obsession with trade deals - if they are such a good idea why would you leave the single market. They should all go the "full Redwood" and fall back on standard WTO terms or nothing if we get vetoed

surrey_commuter

amazing that 12 months ago Tesco was public enemy number 1 for beating up suppliers and delivering low prices to consumers.

Now it is the people's champion for beating up suppliers and delivering low prices to consumers.

pblakeney

Surrey Commuter wrote:

amazing that 12 months ago Tesco was public enemy number 1 for beating up suppliers and delivering low prices to consumers.

Now it is the people's champion for beating up suppliers and delivering low prices to consumers.

Ben6899

Tangled Metal wrote:

Remain. My personal view was a that there had been no.good argument to.leave so unless that came along I felt it safer to remain part of the EU.

I'm confused. Mr Goo and Coop told me that we needed to Brexit to stop the imminent invasion of Turkish ISIS madmen. Did I misunderstand?

(I voted to Remain)