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Showing posts with the label Woolworths

More Expensive Eggs - "End" of Battery Hens

Coles and Woolworths promise no support for battery chickens and pork grown in like manner. They say they will only purchase from "green" suppliers. Is this being good citizens on their part? Well frankly, it is not. Controlling 80 per cent of the market they have the power to force low prices on more expensive production. We will see small operations go to the wall and a future oligopoly forming. When this is finalized, like in the paint market, buyers will have to pay the price offered by the few gigantic producers. For example, Bunnings has to take prices of the few paint manufacturers. Furthermore, there is nothing to stop backyard battery operations selling at weekend markets. Legislated changes have unintended consequences. The result will be more expensive eggs. This has to be the case. Higher costs mean higher prices overall. This is economic fact. Get ready to see cardboard signs nailed to front fences of houses selling "home grown" eggs. http:...

Nothing Will Make Coles Sell Growth Enhanced Beef

Coles has chosen not to sell beef enhanced by Hormone Growth Promotants (HGP). For making this stand it has been condemned by Animal Health Alliance (AHA). Note that AHA is financed by pharmaceutical companies. Elanco and Pfizer are members of this organization. Saying that Coles ignores scientifically based findings that HGP beef is safe is unscientific in itself. No number of tests will ever prove it to be safe because it hasn't been in use long enough to ascertain its dangers. CSIRO has found HGP beef to be of poor eating quality, and as Coles makes a quality related buying decision is will not be purchased by them. This is a free country and producers "jumping up and down" will not make consumers buy their product. HGPs make cattle grow faster so it should be cheaper. Unfortunately, this saving is not passed on to the buyer. Indeed, consumers will pay more for non-HGP beef. Sales of HGP meat is declining and it won't be around for much longer. How can Coles action...

Tax on Internet Sales is Economically Irrational

Calls by big business in Australia for the Goods and Services Tax to be extended to cover Internet purchases less than a thousand dollars is just sour grapes on their part. Only 3 per cent of all Australian purchases are for Internet sales and many of these are local Australian purchases. The Government has said the cost of collection would be far more than the income gained. Such a tax would be like re-implementing tariff barriers. It could certainly be interpreted that way. Big business is not calling for new trade barriers is it? It has taken half a century to reduce barriers in the car industry. Even now some obstacles to free trade remain in motor vehicle production. Australian businesses have to lift their game. Go into a department store and try to find someone to give assistance. You can't find anybody! Staff has been cut to ridiculously low levels. If you do find a lower price for a product on the Internet from a company overseas there is still the post and packaging cost ...

New Payless Cards Makes It Easy for Thieves

As if bankcard fraud is not bad enough a new "easy to cheat" card is released. No pin number is necessary to use cash resources on the card. Just tap it on an Eftpos and a green light comes on to show goods are paid for. Businesses may like this new system because purchases are quick, impulsive and transaction costs are lower. But what if someone gets hold of the card from a burglary. The account can be emptied without a pin or signature. Surely banks will refuse to refund money to the card owner. It is a way for banks to opt-out of their responsibilities. Retailers can also be hit, apparently, because the card can be used with nothing in the bank account. New technology is the culprit. Magnetic strip is now seen as old fashioned. Solid state chips are now the go. Competition is beginning with PayWave and Payless trying to dominate the new market. Thankfully, transactions are limited to $100 at the moment. Takeaway chains and corner stores are adopting the new system for quic...