Baby formula shortage

Discussion in 'Four Corners' started by Smack, May 17, 2018.

  1. myrrh ken

    myrrh ken Bench

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    Id say chinese consumers want a wholly imported product
     
  2. Smack

    Smack First Grade

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    No certainly not, the regulation you are talking about is how it's made rather than how it's sold. You are basically saying well if you like regulation one one aspect, you must like it for everything. lol
     
  3. myrrh ken

    myrrh ken Bench

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    ne'mind
     
    Last edited: May 17, 2018
  4. Smack

    Smack First Grade

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    I need clarification on this because from my conversation with Aptamil rep, I gathered they have some or most of the control in setting prices, that is why I'm hoping Charlatan might be able clarify if there is something in the contract that dictates that.

    What is to stop them from visiting numerous stores or going in and out during the day to purchase more than the limit? Nobody is keeping tabs on Mr Smith and how many times he comes in Coles, they have shit to do.

    And as great as it sounds, keeping them affordable only means the Chinese will keep buying local and selling overseas, so it becomes and issue of, well do I want to pay more for this product or drive a few hours and get it cheaper?

    How will increasing the price make the product sell out? If they cost 60 and sell for 75, narrowing the profit margin, why would they buy more and not less?

    Keeping them 'affordable' certainly won't help. Keeping them at $23 and allowing people to make huge profit certainly won't stop them from trying to get their hands on as many as they can now, will it?

    What are you implying here?
     
  5. Bandwagon

    Bandwagon Moderator Staff Member

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    Well, I don't know how one would take that from what I posted, as I said no such thing.

    Perhaps you would prefer it if it was? It might well be a less inconvenient argument.
     
  6. Canard

    Canard Coach

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    What's the argument here??

    We should jack up prices just to keep those "slopes" from buying formula?

    Great Idea! Let's double the price of a home as well.
     
  7. Smack

    Smack First Grade

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    My argument is about price controls.
     
  8. Smack

    Smack First Grade

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    Well if you had any idea of supply and demand, you might come to that logical conclusion as well.
     
  9. myrrh ken

    myrrh ken Bench

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    Who has price controls? Coles? Probably.

    Nothing is stopping people from visiting 40 shops and buying them up. But its a pain in the hoop for someone to do that. Limiting quantity is an effective measure .

    Who do you think has more money? Up the price and you price out the local market.

    These companies are trying to retain their local customers/market, not piss them off.
     
  10. Canard

    Canard Coach

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    Holy Shit.

    Of all the dumb shit you've posted, these is full retard.
     
  11. Smack

    Smack First Grade

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    wrong thread
     
  12. Smack

    Smack First Grade

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    Cool, care to explain why it's full retard?
     
  13. Smack

    Smack First Grade

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    the price is deliberately being kept low, as per my conversation with the company rep, to make it 'affordable' which in turn is causing the Chinese to buy it locally and sell it for a profit in China.

    But that is what they are doing right now.. The only thing that would stop them doing that is by not keeping the price low.

    No you don't because people will still buy it. They are not going to let babies starve because it's more expensive. What it will do, is stop the Chinese from buying them in bulk because there won't be a wide profit margin.

    Would you rather they had stock or no stock, what would piss them off more?
     
  14. myrrh ken

    myrrh ken Bench

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    Huh? How is it considered a price control if the manufacturers themselves are doing it. They go for around the same price as in the pharmacies, so its not the supermarkets dictating the measures.

    Yes what they are doing right now is effective for the local market.

    Jacking up the price instead of having measures to limit demand is what is going to piss off the local market.
     
  15. Smack

    Smack First Grade

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    The price that matters is the one that the retail customer pays for in this case, that ios what is being kept low for the sake of 'affordability'

    Not when there are shortages around Australia.

    I mean, sure it will piss people off, but it's better to have the formula available rather than empty shelves, no?
     
  16. myrrh ken

    myrrh ken Bench

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    What the hell are you arguing about?

    Are you annoyed that manufacturers have kept their prices low? How dare they!

    You are of course aware that this problem has been around for 5 years or more?


    Baby formula brand Aptamil says supplying Australian customers is ‘priority’
    DECEMBER 29, 2015A KEY supplier of baby formula has told “unofficial” exporters to get their hands off its popular brand.

    It comes after the Herald Sun revealed authorities stopped 60 tonnes of baby formula and milk from being shipped from Melbourne to China.

    Agriculture Minister Barnaby Joyce said the Federal Government was doing all it could to ensure infant formula leaving Australia complied with export laws.

    Parents are unleashing fury at makeshift operations stocking cars full of the hard-to-find formula, including at a house in Melbourne’s north.

    Danone Nutricia, which produces the Aptamil brand, said its priority was to maintain supply to local families.

    “Danone Nutricia is aware of unofficial trade of infant formula from Australia, which includes our well-known global brand, Aptamil,” a company spokeswoman said.

    “Our priority is ensuring we supply the market for local families so that our products are consistently available for Australian parents and carers. We’ve done this by increasing production, supplying through our online stores, and working with retailers.”

    Strathmore resident Jen Perera said people who lived in a nearby house were loading pallets full of tins into their garage, including Aptamil.

    “It affects me because I see how sad my friends are when they can’t find formula for their babies, and these people have boxes full of it,” she said.

    A woman at the Strathmore house said her son had started a business to sell the formula.

    “I don’t have any idea. Boys never listen to their mum,” she said.

    Mr Joyce called on Australia’s dairy industry to ramp up production to meet the demand.

    “While my department is doing all it can at our borders to ensure that Australian exported goods meet our export rules as well as China’s import rules, clearly there is an opportunity for Australia’s entire dairy supply chain to meet this growing demand both in Australia and overseas,” he said.

    Coles and Woolworths said they would continue rationing purchases until demand caught up with supply.
     
    Last edited: May 18, 2018
  17. myrrh ken

    myrrh ken Bench

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    You are inconsistent with your economic logic. You say that jacking up the price won't affect Australian consumer, because they have to buy it so their babies won't starve, yet it will be effective in deterring Chinese consumers. That simply does not make sense. Especially considering the scale of demand of cashed up Chinese buyers.

    Even the manufacturers recognise that demand for their product is price inelastic. In fact its probably close to a Giffen good https://en.wikipedia.org/wiki/Giffen_good

    What is effective is making it annoying for the middlemen to do their business.

    What is unfortunately hilarious is Asian- Australian mums copping grief from buying formula for their kids at the supermarkets.
     
    Pantherjim. likes this.
  18. SpaceMonkey

    SpaceMonkey Coach

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    And that’s probably largely because of the almost complete lack of copyright/trademark enforcement in China, a brand name on a tin/packet there is no guarantee because counterfeit product is everywhere.
    Buying product overseas is the sure fire way of knowing you’re getting the real thing.
     
  19. Smack

    Smack First Grade

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    What do you need me to clarify?

    No, not at all. I'm explaining that the reason we have shortages is largely due to the artificial price.

    Yeah.. due to the price..
     
  20. Smack

    Smack First Grade

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    I said they won't buy it in bulk if the price is at market value, people will only buy what the need.

    Source?

    That may be so, but they are still doing it and there are still shortages.
     

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