Can we do this calculation again please?

Oxfam also found that supermarkets are taking the lion’s share of the price paid by shoppers. Of the 79p paid by shoppers for a pack of 100g black Assam tea in the UK, supermarkets and tea brands receive 49p while workers receive just 3p.

The workers on a wheat farm receive what portion of the price of a loaf of bread?

15 thoughts on “Can we do this calculation again please?”

  1. “supermarkets and tea brands receive 49p”

    Presumably some of that 49p finds its way to the workers of the tea brands and supermarkets…..

    I do wish some of these lefties constantly moaning about businesses and telling them how they ought to be run would actually try running a business.

  2. I presume then that Oxfamites will be traveling to Sri Lanka to pick up the raw leaves directly from the farmers hands and bring them home?

  3. Bloke in North Dorset

    I’m reminded of the water privatisation arguments. Apparently water, in the form of rain, was free so therefore we didn’t need no stinking capitalists.

    When I asked those making these arguments if they’d get up at 3am to fix a burst mains water pipe without salary or work in a sewage farm again without salary, I got looks that ranged from blank incomprehensible stares to the shock of seeing someone with 3 heads.

  4. We already know I believe how much of the money folk give to fake charities like Oxfam actually goes to help poor people–ie very little indeed. CEO does well tho’.

  5. @BIND

    More to the point the stuff that falls out of the sky is not the same as as the stuff that comes out of a tap

    No-one in this country is prevented from collecting/using rainwater if they want to, it is indeed free

  6. ‘while workers receive just 3p’

    M’kay. What is the correct percentage they should receive?

    These people are communists, so the answer is easy: 100%.

  7. It’s the usual failure to understand where the value’s added. The value of the picked leaves in a Sri Lankans basket is virtually zero, because there’s insufficient demand in Sri Lanka. The value is added by moving the leaves to the UK shopper’s supermarket basket. You only have to look at commodity prices to see how much value is created by moving bulk leaves to the UK dockside & how much is added by packaging & retailing.

  8. Not only do the workers get only 3p, the people saving kittens trapped up trees get 0p. Does everyone know how much I LUV KITTENS

    In other words, Oxfam is again assembling heartstring-tugging factoids with no relevance.

  9. No, BiS. Has nothing to do with the product. It’s labor cost in Sri Lanka.

    “Employers pay what the have to pay to attract and retain people who can do what they want done.” – GC

  10. “The workers on a wheat farm receive what portion of the price of a loaf of bread?

    That I can tell you. A decent crop of milling wheat will be about 3.5 tonnes per acre, and a 1000 acre farm will be run with no more than 3 full time workers, 1 manager and 2 workers. Each year they could produce 3500 tonnes of milling wheat. One tonne of grain makes about 1600-1800 loaves of bread (depending on whether its brown or white flour used, white loses some of the grain in milling). Which will sell for anywhere from 50p to £1+. So our 3 employees will have produced enough grain to make roughly 6m loaves of bread, which is worth between £3m and 6m pounds retail. The paid employees on the farm will be paid £25-35k for skilled workers, and £45k for a manager. So on the basis all workers were paid employees, total remuneration would be around £100k.

    So the workers will have made the raw materials for say £4m worth of bread, but been paid £100k in wages. Which by my maths means they’ve received 2.5% of the value on the shop shelves, before tax, which I doubt the Indian workers pay. And I’ve been generous with the labour – there’s lots of 1000 acre arable farms that run with one full time employee and the owner doing the managing. If they were receiving the same proportion as the Indian tea plantation workers the wages would jump to over £150k split between the workers.

  11. On the Henry Ford version of economics that some Americans still seem to believe in, all you need pay a tea-picker is enough money so that they can afford a cup of tea.

  12. Bloomin ell , just after thinking about a 3500 tonne harvest with just 3 peeps, I needed a cup of tea and a sit down.

    i always wondered why leavened bread was so popular. Grain and flour yes, presumably for ease of storage, and transport. But you don’t have to make bread with it. All that kneading, proving, baking are a massive time and heat inputs compared to chopping up some spuds and putting them in a pot, not to say the chappati model of just making a dough and stuffing it on a hot plate.

  13. Well, yes, but farming for wheat in Europe – and Asia, Africa – predates farming for potatoes by about 8,000 years. Roughly, you understand. The actual surprise is how damn fast those American crops did in fact spread after their introduction. What, 1550 the potato arrives? -ish? By 1844 it’s feeding the entirety of Ireland? Then, of course, by 1848, not doing so.

    As to leavened, doesn’t it increase the ability of the human gut to absorb the nutrients?

  14. “Bloomin ell , just after thinking about a 3500 tonne harvest with just 3 peeps, I needed a cup of tea and a sit down.”

    Not really, modern combines can do 10-15 acres an hour depending on conditions, the corn carts carry about 15 tonne each so assuming no longer than a 30 minute round trip field to cornstore and back, a couple of tractors and carts can shift 50-60 tonnes per hour. Ten hour day in good conditions equals 400-500 tonnes no problem. 10 days work and harvest is done……..and no one got out of an air conditioned cab.

    Obviously in reality weather and mechanical breakdowns slow things down , but most farms with under 2000 acres of combinable crops will only have 1 combine, though the workload will be spread by having crop types that need harvesting at different times of the summer – barley is usually first, then OSR, then wheat, lastly beans and linseed.

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