There again, it’s never black and white…
As a principle, if you can make a product
and fix the price yourself with the final consumer (without dealing with
middlemen), you should be on a winning ticket.
And yet it’s easy to forget that the
intermediaries are not simply buying to sell on immediately without incurring
any costs! Let’s take an example I know only too well, the lengthy process of
turning milk into cheese.
The “added value” takes into account the
following different steps (and I may be missing out a few, as it’s a long and
not exhaustive list – nor does it apply to certain cheeses)
-
collecting milk to bring it to a
transformation centre
-
bacteriological and
physico-chemical analysis of delivered milk : milk is not just a simple white
liquid. It contains flora composed of milk cells, bacteria, yeasts, moulds, fatty
matter, a level of protein etc… Therefore one has to undertake a daily analysis
to check that it does not contain any harmful bacteria (either for humans or
for the quality of the cheese itself) and also to align the manufacturing
process to the daily volume brought in
-
storage, when necessary
-
acidifying the milk and adding
rennet: the starter cultures can take more or less time to work (it can be up
to 18 hours)
-
curdling of the milk in rooms
at the right temperature and the right hydrometric level
-
time spent in a vat (depending
on the type of cheese, more or less power is required. For example with those
hard cheeses which are cut into small beads the size of corn seed and then stirred
vigorously and heated up to 52-55° to remove as much humidity as possible
through evaporation.
-
shaping: in one movement or
several
-
salting: with dry salt in brine
for between a few minutes and a few weeks, depending on its individual recipe
-
ripening: the “affineur” does
not simply look after the cheeses as they mature – so you must pay his wages.
-
packaging: box or wrapper,
paper, final shaping, protective film or plastic container, delivery cartons …
to say nothing of the personnel costs involved in manufacturing, packaging,
administration, R and D, quality control, marketing etc…
-
not forgetting maintenance
staff, suppliers, technical development, packaging etc, etc.
-
then selling onward to a
wholesaler: transport costs for collecting these cheeses together
-
with those of other regions;
warehousing them in cold storage with controlled humidity so that they do not
dry out. Cost of warehousing and commercial and administrative staff, cleaners…
-
selling onward again to a
distributor : costs of delivery to store. General operating costs of the retail
outlet (sales staff, admin costs, advertising, out of date produce, stolen
stock etc, etc.
I am sure I’ve
forgotten something. But it’s clear there is a multitude of operations between
the delivery of the milk and the purchase of the cheese in store – and that all
these operations provide employment for people to earn money which they can then
spend buying milk products… and what if they were not earning?
But all this is
only my opinion…
And if you look
at the stages gone through in the meat business for one moment, I still remember
the comment of a man who raised cattle, saying how pleased he was to work with
industrial clients and big retail chains because they took his meat by the
carcass rather than asking for bits and pieces, as was the habit of individual
consumers coming direct to him for their meat.
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