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On Thu, 8 Nov 2018 19:54:51 +1100, "Rod Speed"
wrote:



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. ..
On Thu, 8 Nov 2018 07:56:44 +0000, Logan MacEwens
wrote:

I shop every week where I sometimes run out of cream near the end of the
week.

So I figured I'd stock evaporated and condensed milk, but they change
the
taste of the coffee and, 90% of the can gets wasted because I only need
one
shot or two until I go out and buy cream again (which can't be stocked).

Then I had the bright idea of stocking powdered milk!

Sure, it sucks as a product, but for emergencies it should work, right?
Guess what?

The PRICE of powdered milk is far more than fresh milk!
Why?

Generally crap costs less than the real thing, right?
So why is powdered milk (admittedly, it's crap), more EXPENSIVE than
fresh
milk?

I don't get it.
Do you?
There is more processing to make powdered milk. Regular milk just
comes straight from the cow with a quick pass through the pasteurizing
machine on it's way to the jug.

You also have the problem that powdered milk is an international
commodity and gets somewhat "price fixed" by trade agreements.

No trade agreement fixes its price.

Perhaps "establish" would be a better term

No trade agreement establishes its price either.

And there arent many trade agreements between the
US and the main exporters of powdered milk either.

but it is going to be based on what the traffic will bear

Yes, and the cost of producing it.

and if our competitors are charging more, we can charge more.

But has nothing to do with trade agreements.

Places like New Zealand are already griping that we "dump"
it on the market cheaper than they can produce it.

But that's mostly just more **** and wind.

The price part in valid tho.

What ?

We can bump our price up to 99.5% of theirs and still be cheaper.

The reality is that the market price isnt cheaper than NZ can produce it.
If it was, NZ wouldn't be selling so much of it to China.