|
|
We appreciate your help
in keeping this site going.
|
|
05-13-2011, 12:34 AM
|
|
Area Man
|
|
Join Date: Oct 2009
Location: The Swamp
Posts: 27,407
|
|
Had a big meeting today........(A rant.)
We had our annual "State of the Business" meeting with all of the big wigs at work today. I'm not going to go through the whole thing, because it was two hours long and would bore you to death. Especially if your not familiar with the coffee business.
The thing that has stuck in my mind all day long is this. We were told that the company had a record year in 2010 and the first quarter of this year as far as growth and productivity goes, and we are looking forward to potentially better second and third quarter this year. We have accrued more than 17 million pounds of additional volume from one customer, and nearly 35 milion pounds from a new customer for the upcoming year. Cost saving goals have been met, and efficiency teams (OEE and CI, of which I am a part.) have made significant strides over the last year.
Sounds great, Huh? I thought so, until I heard this.....
"However, our earnings have been disappointing. We've barely broken even. Can anyone tell me why?"
Someone guessed "Taxes".---"Nope, our tax liabilities have not changed."
"Labor costs"---"Well there has been an increase in overtime, but that is commensurate with our increase in volume. So, no."
Another person said, "Fuel Costs."---"Well, that's part of it, but not the worst part. The price of fuel does push up the price of everything. But, that's not what is killing us."
"Okay, here's what it is."
"The worst part is commodities speculation. Folks on Wall Street buying green coffee, then reselling it at a higher price. That's all they do. They never even see what they bought. They don't do anything with it. These people basically produce nothing. All they do is artificially run up prices. And the price of green coffee has been jacked up nearly 200% over the last year, doing serious damage to profitability throughout the entire industry, despite everyones hard work. So far were managing, but if it continues much longer it makes the future very uncertain, things could get very tough......."
But, no...no.... I get on the internet, go to a political board similar to this one and post that I'm worried about my job, and what do I get from my fellow Americans?
"Damn unions..........."-(We have no union.)
"F**kin' Obama........."-(Didn't know he's a commodities trader. )
"Well, if you #@*&^% people would just do your *^%$# job!!!!"-(We do our jobs and do them damn well. That has NOTHING to do with it.)
You know, I am really getting tired of this shit. If I lose this job, it will be the second time I have lost a good job, through no fault of my own and had to listen to ignorant people heap all of the blame on me and my coworkers. Why do they do it? Because they believe all of the bullshit they hear from people like Limbaugh, Boortz, Hannity, et al. And I'll leave the reason why THOSE assholes do what they do up to your imagination.
The first time it was because the clowns at corporate went on a reckless aquisition spree, buying up every friggin' automotive parts company that went up for sale, with heavy debt and somehow managed to take on three billion, that's right BILLION with a "B", worth of asbestos claim liabilities. Went bankrupt and sold our division to a Canadian company that took the contracts and equipment home with them, because they had people at home that needed the work. (And I don't blame them for that.)
But, for years, every time I mentioned this to people I would get the same brainwashed stupidity----"Serves you right, you lazy $%#&^!!!" etc, etc, etc........
Where does it end? When are we gonna snap out of it? Huh? Because I'd really like to know.
Dave
__________________
"When the lie is so big and the fog so thick, the Republican trick can play out again....."-------Frank Zappa
Last edited by BlueStreak; 05-13-2011 at 12:40 AM.
|
05-13-2011, 06:14 AM
|
|
Senior Member
|
|
Join Date: Oct 2009
Posts: 679
|
|
I dunno Dave. People like you and I leave a little money in an IRA or mutual
fund because that's what we were led to believe is the best longterm. Now
that is just free money for them to move around and manipulate to their
advantage all the while costing us more at the pump and the Mr Coffee ect..
What do we do? Blame the right, vote for the left and get no change?
Organize a grass roots movement to stand up for what you believe in only
to be made out to be fools or evil by the media? We need something bigger,
a movement where we cash out and demand US made products. Total
boycotts of things not to our advantage. Are we as citizens going to do
that, NO so we get what we got.
|
05-13-2011, 07:02 AM
|
|
Senior Member
|
|
Join Date: May 2009
Location: Scotland
Posts: 658
|
|
Quote:
Originally Posted by HatchetJack
I dunno Dave. People like you and I leave a little money in an IRA or mutual
fund because that's what we were led to believe is the best longterm. Now
that is just free money for them to move around and manipulate to their
advantage all the while costing us more at the pump and the Mr Coffee ect..
What do we do? Blame the right, vote for the left and get no change?
Organize a grass roots movement to stand up for what you believe in only
to be made out to be fools or evil by the media? We need something bigger,
a movement where we cash out and demand US made products. Total
boycotts of things not to our advantage. Are we as citizens going to do
that, NO so we get what we got.
|
Same in the U.K. Those who produce bugger all make the most money. I don't see how a boycott could help; as these leeches only acquire things on paper, there would be no tangible goods to boycott.
|
05-13-2011, 07:04 AM
|
Abby Normal
|
|
Join Date: May 2009
Posts: 11,245
|
|
Quote:
Originally Posted by BlueStreak
We had our annual "State of the Business" meeting with all of the big wigs at work today. I'm not going to go through the whole thing, because it was two hours long and would bore you to death. Especially if your not familiar with the coffee business.
The thing that has stuck in my mind all day long is this. We were told that the company had a record year in 2010 and the first quarter of this year as far as growth and productivity goes, and we are looking forward to potentially better second and third quarter this year. We have accrued more than 17 million pounds of additional volume from one customer, and nearly 35 milion pounds from a new customer for the upcoming year. Cost saving goals have been met, and efficiency teams (OEE and CI, of which I am a part.) have made significant strides over the last year.
Sounds great, Huh? I thought so, until I heard this.....
"However, our earnings have been disappointing. We've barely broken even. Can anyone tell me why?"
Someone guessed "Taxes".---"Nope, our tax liabilities have not changed."
"Labor costs"---"Well there has been an increase in overtime, but that is commensurate with our increase in volume. So, no."
Another person said, "Fuel Costs."---"Well, that's part of it, but not the worst part. The price of fuel does push up the price of everything. But, that's not what is killing us."
"Okay, here's what it is."
"The worst part is commodities speculation. Folks on Wall Street buying green coffee, then reselling it at a higher price. That's all they do. They never even see what they bought. They don't do anything with it. These people basically produce nothing. All they do is artificially run up prices. And the price of green coffee has been jacked up nearly 200% over the last year, doing serious damage to profitability throughout the entire industry, despite everyones hard work. So far were managing, but if it continues much longer it makes the future very uncertain, things could get very tough......."
But, no...no.... I get on the internet, go to a political board similar to this one and post that I'm worried about my job, and what do I get from my fellow Americans?
"Damn unions..........."-(We have no union.)
"F**kin' Obama........."-(Didn't know he's a commodities trader. )
"Well, if you #@*&^% people would just do your *^%$# job!!!!"-(We do our jobs and do them damn well. That has NOTHING to do with it.)
You know, I am really getting tired of this shit. If I lose this job, it will be the second time I have lost a good job, through no fault of my own and had to listen to ignorant people heap all of the blame on me and my coworkers. Why do they do it? Because they believe all of the bullshit they hear from people like Limbaugh, Boortz, Hannity, et al. And I'll leave the reason why THOSE assholes do what they do up to your imagination.
The first time it was because the clowns at corporate went on a reckless aquisition spree, buying up every friggin' automotive parts company that went up for sale, with heavy debt and somehow managed to take on three billion, that's right BILLION with a "B", worth of asbestos claim liabilities. Went bankrupt and sold our division to a Canadian company that took the contracts and equipment home with them, because they had people at home that needed the work. (And I don't blame them for that.)
But, for years, every time I mentioned this to people I would get the same brainwashed stupidity----"Serves you right, you lazy $%#&^!!!" etc, etc, etc........
Where does it end? When are we gonna snap out of it? Huh? Because I'd really like to know.
Dave
|
another excellent post
wall street is killing american i can't see how anyone can disagree
trading has become a gimmick not a business investment. Speculation is but one "game".
|
05-13-2011, 08:59 AM
|
|
Possibly admin. Maybe ;)
|
|
Join Date: Sep 2009
Location: Land of the burning river
Posts: 21,098
|
|
So, what do we do? Set prices by government fiat?
Quote:
Originally Posted by BlueStreak
....."F**kin' Obama........."-(Didn't know he's a commodities trader. )
...
|
That would be Hillary
Pete
__________________
“How many legs does a dog have if you call the tail a leg? Four. Calling a tail a leg doesn't make it a leg.”
|
05-13-2011, 10:11 AM
|
|
Senior Member
|
|
Join Date: May 2009
Location: SF east bay
Posts: 4,455
|
|
Coffee prices here have pretty much doubled in the last year and I have not heard of any real causes for this to happen. So price gouging occuring makes a lot of sense. Hope you aren't part of any cost cutting to appease stockholders.
Carl
|
05-13-2011, 01:22 PM
|
|
Senior Member
|
|
Join Date: Aug 2010
Location: Metro Detroit
Posts: 13,016
|
|
Quote:
Originally Posted by CarlV
Coffee prices here have pretty much doubled in the last year and I have not heard of any real causes for this to happen. So price gouging occuring makes a lot of sense. Hope you aren't part of any cost cutting to appease stockholders.
Carl
|
I think it might be a good idea to check our premises in this discussion. Yes, there has been a rise in food commodity speculation, including coffee.
http://www.espressocoffeeguide.com/2...coffee-prices/
http://www.bloomberg.com/news/2011-0...inflation.html
But there are many reasons to engage in commodity speculation. It is not simply individuals gaming the market. It is producers and food manufactures as well engaging in market speculation in an attempt to lock in prices that are beneficial (manufacturers ), which may ultimately benefit consumers.
Supply and demand are influencing commodity prices as much as anything, and speculators are responding to supply issues. Its a gambit either way for the speculators, particularly if they're buying in a short supply scenario, and then the market changes and the speculators take a beating.
I recall a few years back Post did a good job locking in grain prices when demand (and cost) was relatively low in the marketplace. Kellogg failed to do so, and as a result there was some great pricing competition at the retail level for cereal products that allowed Post of gain market share against Kellogg while creating a lot of value for the consumer.
Its the "bad" speculation (from the consumer perspective) that makes headlines. There are any number of examples that don't get the same press when they actually benefit the consumer.
Last edited by whell; 05-13-2011 at 01:50 PM.
Reason: Spelling correction
|
05-13-2011, 01:27 PM
|
|
Reformed Know-Nothing
|
|
Join Date: Oct 2009
Location: MoCo, MD
Posts: 25,917
|
|
Quote:
Originally Posted by whell
I think it might be a good idea to check our premises in this discussion. Yes, there has been a rise in food commodity speculation, including coffee.
http://www.espressocoffeeguide.com/2...coffee-prices/
http://www.bloomberg.com/news/2011-0...inflation.html
But there are many reasons to engage in commodity speculation. It is not simply individuals gaming the market. It is producers and food manufactures as well engaging in market speculation in an attempt to lock in prices that are beneficial (manufacturers ), which may ultimately benefit consumers.
Supply and demand are influencing commodity prices as much as anything, and speculators are responding to supply issues. Its a gambit either way for the speculators, particularly if they're buying in a short supply scenario, and then the market changes and the speculators take a beating.
I recall a few years back Post did a good job locking in grain prices when demand (and cost) was relatively low in the marketplace. Kellogg failed to do so, and as a result there was some great pricing competition at the retail level for cereal products that allowed Post of gain market share against Kellogg while creating a lot of value for the consumer.
Its the "bad" speculation (from the consumer perspective) that makes headlines. There are any number of examples that don't get the same process when they actually benefit the consumer.
|
Yep, and Southwest Airlines did much the same with fuel prices. Economic analyses I've read all seem to favor the stabilizing effect of futures markets. I'm not fully convinced (nor am I convinced by any argument in "the dismal science"), but I haven't heard any real convincing counterpoints. Had your coffee company (or anyone else's) foreseen the price upswing and bought futures a year ago at low prices, they'd be bathing in profits.
__________________
As long as the roots are not severed, all will be well in the garden.
|
05-13-2011, 04:59 PM
|
|
Senior Member
|
|
Join Date: Oct 2009
Posts: 679
|
|
Dave I don't doubt for a minute those speculators are mostly out for themselves
with some back room deals going on constantly. Whell makes a good point
also. One thing is for certain coffee has always had its ups and downs as
long as I can remember but more often than not it's pretty reasonable.
I bet the price comes down but not before a bunch of iphone golfer
traders allow it to. Dont let those big wigs put their stress off on you, it's
a lot more their problem than yours.
Usually there is a warning before it goes up and I buy a few tubs and stick
it in the freezer to get past the high prices but I got caught with my pants
down this go around. Guess I'm guilty on a smaller scale.
|
05-13-2011, 11:14 AM
|
|
Loyal Opposition
|
|
Join Date: Oct 2009
Location: Johnson County, Kansas
Posts: 14,401
|
|
Broken record here, but our economy has become distorted to the extent that it values making money well above making products. How many of the richest people have been hedge fund managers?
Regards,
D-Ray
__________________
Then I'll get on my knees and pray,
We won't get fooled again; Don't get fooled again
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
All times are GMT -5. The time now is 05:53 PM.
|