Not how it works, no

UK-grown cabbages, potatoes and onions all fell prey to bad growing conditions last year, triggering higher costs and less choice on supermarket shelves for consumers, according to figures gathered by the British Retail Consortium.

With fewer vegetables to sell thanks to low yields, producers have charged more.

With fewer to buy consumers have been willing to pay more….

Think it through. Any supplier is always willing to charge more. What is it that lets him?

7 comments on “Not how it works, no

  1. Less choice?

    What, you mean mean we were unable to import cabbages, potatoes and onions from elsewhere? Places like Spain, France or Germany?

    Surely not, sir.

  2. Many supermarkets now sell imperfect veg. Just as good but not so pretty. They will no doubt be left out of any price comparison where they are looking to make it seem prices are rising.

  3. Business 101: Balance margins and volume.

    If volume is restricted, you can get higher margins.

    Economics 101: Supply and demand.

  4. “If volume is restricted, you can get higher margins.”

    Not necessarily – possible that your upstream costs may have risen too.

    Also compare % margin (which may well rise) and contribution/cash margin (which well fall if volumes fall far enough)

    Rising % margin is rarely the whole story.

  5. Really? I’ve not noticed that in Tesco; they always have ~6 types each of cabbages, potatoes and onions

Leave a Reply

Name and email are required. Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.