Farm gate cost of cider

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Raymond Blockley

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Feb 4, 2013, 9:18:52 AM2/4/13
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Hi all,
After a bit of info from UK based folk on approx price per litre inc VAT for farm gate sales of cider.

A chap on a Facebook group is claiming to buy cider at a retail cost (so non-wholesale) of £1.20 per litre. Says it was £1.00 litre up to this Jan. I'm assuming that this price is when taking your own container.

Is that really likely based on your experiences and local knowledge?

Cheers, Ray

Tim

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Feb 4, 2013, 9:23:08 AM2/4/13
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Varies down here Ray, some charge as little as 90p which does nobody any favours, I have customers saying my cider is too expensive because they can get it cheaper elsewhere, if I sold at 90p it would not be worth getting out of bed for.

 

Tim

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Raymond Blockley

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Feb 4, 2013, 9:26:28 AM2/4/13
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So sadly such low prices will also be seen as more grist for the I'll informed 50p MUP lobby, as well as doing none of us any favours?

Cheshire Matt

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Feb 4, 2013, 9:45:17 AM2/4/13
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Can't be sure, but that price sounds like Frank Naish's price to me.
There are some on twitter who regularly make trips to Somerset ciderland
and mention his name and "�1 a litre" in the same sentence (or 140
characters...) That's the lowest I know of - and presume it's with own
container, but don't know as not actually bought from there myself.

Of course, if it is Frank, he's the UK's oldest cider maker and has had
his kit in the family for generations - I reckon there's been no new
press, barrels or other capital outlay for agood number of years; it's
an established orchard, no buying in of apples; if you want a container,
price of it is added onto the cider; always makes the same amount and
isn't having to buy kit to grow his "business"; no marketing/advertising
spend; will have income from other farming activities probably to pay
the rates and put food on the table; so incremental/marginal production
costs are minimal, if not damn close to zero. With the average weekly
rural wage in those parts close to �200 a week, if one person worked
4months of the year on producing it, and made 3000L his wages would be
covered too. So sorry CAMRA, but even at that price, it's not being
sold at below the cost of production - it's just the economics of how
cider's made in Somerset.

Probably not what you wanted to hear Ray, but...

Matt

Raymond Blockley

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Feb 4, 2013, 9:49:09 AM2/4/13
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No Matt, it is what I wanted to hear with regard to the massive misinformation being bandied about with regard to MUP and selling below cost.

As a cider maker, I'm pleased not to be living locally and in direct competition though!

Ray

On 4 Feb 2013 14:45, "Cheshire Matt" <goo...@camelid.net> wrote:
Can't be sure, but that price sounds like Frank Naish's price to me.  There are some on twitter who regularly make trips to Somerset ciderland and mention his name and "£1 a litre" in the same sentence (or 140 characters...)  That's the lowest I know of - and presume it's with own container, but don't know as not actually bought from there myself.

Of course, if it is Frank, he's the UK's oldest cider maker and has had his kit in the family for generations - I reckon there's been no new press, barrels or other capital outlay for agood number of years; it's an established orchard, no buying in of apples; if you want a container, price of it is added onto the cider; always makes the same amount and isn't having to buy kit to grow his "business"; no marketing/advertising spend; will have income from other farming activities probably to pay the rates and put food on the table; so incremental/marginal production costs are minimal, if not damn close to zero.  With the average weekly rural wage in those parts close to £200 a week, if one person worked 4months of the year on producing it, and made 3000L his wages would be covered too.  So sorry CAMRA, but even at that price, it's not being sold at below the cost of production - it's just the economics of how cider's made in Somerset.

Probably not what you wanted to hear Ray, but...

Matt



Raymond Blockley wrote:

Hi all,
After a bit of info from UK based folk on approx price per litre inc VAT for farm gate sales of cider.

A chap on a Facebook group is claiming to buy cider at a retail cost (so non-wholesale) of £1.20 per litre. Says it was £1.00 litre up to this Jan. I'm assuming that this price is when taking your own container.

Is that really likely based on your experiences and local knowledge?

Cheers, Ray

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Tim

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Feb 4, 2013, 9:55:05 AM2/4/13
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Not Frank, one of the biggest independents in Somerset ;)

Alan Stone

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Feb 4, 2013, 12:46:56 PM2/4/13
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Frank did invest in a squeezbox press about 4 years ago
 
Talk to a landlord and find out what the nationals charge for keg cider - I know some of the big brands are below £1.00 a litre, I believe I have heard of the orange stuff in the 45p per pint area.

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