Sunday, June 15, 2014

ON THE EU AND THE COMMON AGRICULTURE POLICY MADNESS

Things are on the up and up in Northland (albeit from a fairly low base).   In Paihia my hotel/motel/restaurateur contacts are telling me that business this year has have been the best in a decade.    May it continue apace.

And so it was that last night the Veteran and Mrs Veteran took off to one of our favorite eateries, Jimmy Jack's Rib Shack.    As usual it was crowded.   In the 90 minutes we spent there we saw over 100 customers arrive/depart. Those are good numbers any way you want to play it.

JJ's promotes itself as having on offer the best ribs in Northland.    Some might opine they are being a little too modest for their own good; no matter.     Very few patrons would have an inkling where mine-host gets his ribs from ..... you would guess local but you would be dead wrong.   JJ's source their ribs from FINLAND ... I kid you not.   They bring them in by the container load at a cost to the door delivered 25% cheaper than they can get from any New Zealand supplier.     

I don't blame them from making a market decision ... but its a perfect example of how subsidies distort the market.   Sooner or later someone in the EU will say enough is enough, this is unsustainable ... then what happens?   Meantime JJ's diners feast on.

Jimmy Jack's Rib Shack is right in the middle of town opposite the NZ Post office.   They serve a mean drop of Tiger beer on tap too.
 
   

12 comments:

Watcher said...

Strange aint it.
Fonterra can only exist because we have no subsidies.
I bet the Aussies would love the removal of milk subsidies. Not.

Barry said...

Ah - you didnt say they were pork ribs. And you will probably find that actually they are russian pork ribs. Theyve spent a few months in Finland sure - but they could have been feed anything in Russia - probably why they taste so good......
Anyway - dont be surprised when we get some dastartly desease that ruins the NZ pork industry. Palm Kernel has bought in weeds that weve never had before and kiwi fruit polen bought in PSA .

The really worrying things is though that neither this nor the previous government seemed to think that these sorts of things are a possible problem. Idiots.

The Veteran said...

Watcher ... more fool Aust. Like their car industry, subsidised to hell until the Govt realised they were subsidising failure.

Barry ... if the were Russian ribs they wouldn't be eligible for a subsidy under the CAP.

Adolf Fiinkensein said...

That's interesting because last week I bought a gorgeous leg roast of pork for $3.99/kg on special. A small local chain of butchers which owns its own livestock operations here offers superb specials like this frequently. The other which was memorable was scotch fillet (whole) at $6.99.

Sadly, I've not been able to find a butcher who makes decent traditional English beef sausages.

Watcher said...

" kiwi fruit polen bought in PSA ."

Actually for some that has been a money maker. Those with the hybrid PSA resistant varieties are reaping the reward as they become sought after in China.

Watcher said...

More fool Aust
Nah I can just see the Aussies face when you tell them there milk bottle price would go from $1 to $3.59

Paulus said...

Milk is a loss leader in the Australian Supermarkets, which are overall poor against ours.
The A$1 milk price is there to attract customers only into the stores.
One day it will change back to a real price.

Adolf Fiinkensein said...

Quite right Paulus.

NZ supermarkets use wine to do the same thing.

BTW I don't agree the Ockers are better.

20% cheaper overall, last time I looked/

Noel said...

"One day it will change back to a real price."
Aussie milk is cheap because they are awash in it. They have been cut out of the international market by Fonterra and the like and until Dairy Australia undercut those markets it will remain cheap at home.

Mind you they are known for under arm bowling so anything is possible in the future.

Adolf Fiinkensein said...

Noel, I suspect you might be a little way off the mark here.

It's not that long ago I recall Australia's dairy industry struggle to supply the domestic market.

The fact of the matter is loss leading on milk by Coles and Woolworths is the major factor at play.

Anonymous said...

"The fact of the matter is loss leading on milk by Coles and Woolworths is the major factor at play."

Coles has 4% and Woolworths a little less. You saying the majority of milk retailers are trying to compete with two minor players price?

Adolf Fiinkensein said...

Anon

Pray tell who are the mysterious milk retailers to whom you refer?

The '4%' to which you refer is only Coles brand milk. You should step into a Coles store and see how many other brands are sold. You will find the number is well over 100.