Different country, same problems

[grassfarmer]

I was reading an interesting report in a UK paper today which reveals for the first time the largest recipients of EU farm subsidies in England. Not large farming estates or individual farmers but a list dominated by big food processors and manufacturers. Tate and Lyle(sugar), Nestle and Meadow Foods among others. Of the GBP3.9 billion that British taxpayers pay into the EU farm budget Tate and Lyle alone got GBP127 million.
Meanwhile farm incomes in the UK dropped 8.1% in real terms in 2004. They are now 50% below their peak 1995 levels yet consumers are paying 11% more for their food than they were in 1995. This kind of thievery really is becoming the scourge of ag producers everywhere.

[cowman]

It is sort of sad that there is a whole lot of money to be made in agriculture...but unfortunately the parasites have pretty well drained it all off!
Unfortunately that is just how it is! The growth of international corporations and the various governments lack of will to control them, has created a situation where they really can never be brought into check?
I believe we have basically entered a time when international corporations have virtual control over the world. The various governments are nothing more than corporate lap dogs? I don't think there is a solution.

[farmers_son]

I think there is a solution.

I agree that there is a whole lot of money in agriculture and most of it is beyond the farm gate.

The solution is for primary producers to integrate beyond the farm gate and capture their fair share of those value added opportunities that are available. Producer packing plants are a prime example.

It is my belief that primary producers have competitive advantages and strengths in marketing beyond the farm gate and that profits do exist for those that can that extra step.

The problem of diminishing farm gate returns is not going to reverse itself. Value adding is not just an option, it is a necessity for farmers wishing to seek a profit and see their farms continue to grow.