I must be missing something

[angiolo]

I think it is a fact that if , in Thailand. the business is slow that they increase the price

[Anthony5]

You must have a different experience as me. I have a friend who is general manager of a Carrefour hyper market in my home country.

In the past when I was still in business I also sold sometimes to supermarkets.

The multinationals pay 90 days AFTER delivery, not up front, and with many items specifically new in assortment they pay only what is sold.

They will pay some on 90 day no doubt , usually the smaller or local suppliers who do not have the clout to negotiate like the bigger suppliers, but for the big players, the big multi-nationals it will be on the signing the contract, the money will go to a third party , usually a bank , who will hold the funds until and it will not be released until an agreed date , usually the delivery date , or certain conditions are met. . Interest etc will be negotiated in the contract of course. Therefore most of the prices are based on what was agreed to by the supermarket, or whoever is the purchaser, on prices agreed to ,perhaps a few years previously and the costs such as shipping has been factored in based on the costs agreed to in the contract . This will explain why with lower oil prices the shipping costs have not fallen..

So to get to the point now. Big C is owned by Geant-Casino in France, while tesco lotus is owned by Tesco in the UK.

Their homebrand products, which in case of Big C is Casino, are shipped over from the head office in France who pays their stock in Euro's to their suppliers. So for the head office the cost stays the same.

The office in Thailand needs to pay the French office in Euro's, because the origin of goods is Euroland. So even with your scenario it still means that the Thai branch get their goods cheaper than 6 months ago, due to the devaluation of the Euro.

Now even if the shipping costs have stayed the same, they make up for only a fraction of the price per item.

Same will happen with the goods Tesco-Lotus gets from Tesco in the UK.

No Anthony, the price paid is what has been negotiated and agreed to at the time of the signing of the contract and the contract will specify what currency it will be in . That is unless they renege on the contract . Again it is speculation that the right currency has been chosen for either party.. It is the same as plying the futures market. The company takes a punt on the price they agree to today will return them sufficient profit when the goods are delivered in whatever specified time frame..The goods are probably not even grown or manufactured . Many farmers will grow crops on consignment to a supermarket chain or a food processing chain on a the basis of a future agreed delivery date for an agreed amount . If a storm wipes out the crop then the farmer is in deep shit but if the crop comes in then all parties should be satisfied and the farmer gets his money.

So you want to say that the European suppliers negotiate a supply contract with each branch in Thailand ?

The contract is made with the headoffice, which is in Europe, as it is clear that the goods in the Big C were designed for Europe.e.g the labels are in French.

The contract was maybe made. like you say long time ago, and is in Euro because the goods are delivered by European companies to a European company. You will know that Europe isn't a country, right? And I doubt that French cheeses are produced by a Asian company, so the contract will be made in Euro.

The supplier has no business with Thailand, or Vietnam or whatever country Casino has supermarkets, they deal only with 1 company and that is the one in Saint Etienne France.

They on their turn distribute the goods to their branches all over the world, and each branch has to pay the head office again in Euro, because they don't negotiate contracts since they are all one and the same company.

Even if they would do, why would the head office take the currency risk? They have to pay their suppliers in Euro, so they want Euro's back.

So a President Camembert 250gr, which I can buy in Carrefour Europe for 1.59 Euro will probably be sold to the Thai branch for 1 Euro last year and still 1 Euro today.

Only the Thai branch will today only need 34 Baht to buy 1 Euro where they would have needed 44 Baht 1 year ago.

Edited April 20, 2015 by Anthony5

[lostoday]

I think it is a fact that if , in Thailand. the business is slow that they increase the price

I guess that's why they mark everything down at Lotus at 7:00 in the Bakery section and the deli section and the produce section?

Do you really think 60 year old women dance at go go's? Do you really think women who have been married 5 times with 8 children and are pushing 50 get the same sin sod as 19 year old uni girls?

[Anthony5]

I think it is a fact that if , in Thailand. the business is slow that they increase the price

I guess that's why they mark everything down at Lotus at 7:00 in the Bakery section and the deli section and the produce section?

Do you really think 60 year old women dance at go go's? Do you really think women who have been married 5 times with 8 children and are pushing 50 get the same sin sod as 19 year old uni girls?

They mark it down at 7.00pm because it are goods that have an expiry date of only 1 day, so they can't sell it anymore the next day.

Good try.

[lostoday]

I think it is a fact that if , in Thailand. the business is slow that they increase the price

I guess that's why they mark everything down at Lotus at 7:00 in the Bakery section and the deli section and the produce section?

Do you really think 60 year old women dance at go go's? Do you really think women who have been married 5 times with 8 children and are pushing 50 get the same sin sod as 19 year old uni girls?

They mark it down at 7.00pm because it are goods that have an expiry date of only 1 day, so they can't sell it anymore the next day.

Good try.

Go go dancers and women wanting to get married have an expiration date?

Good try.

In most cases the product is not unhealthy it just looks bad and no one would buy it hence the lack of trade and they mark down the product. The whole world including Thailand marks down product to sell it. The whole world including Thailand sells two for one or buy four get one free. The rumor that Thailand raises prices if business is another one of those, "how many people does it take to screw in a light bulb" things.

[Berkshire]

I think it is a fact that if , in Thailand. the business is slow that they increase the price

No. Just because a few idiot farangs keep repeating this doesn't make it true.

[cocopops]

So what is your topic about?

I would have thought that anyone, with a brain at least the size of a green pea, would be able to comprehend the text in the OP.

So for you only.

If foreign currencies get weaker against the Thai Baht, it is only logical that importing goods from those countries becomes cheaper in Thai baht terms, especially since also shipping cost have declined because of the 50% decline in oil prices.

So since most Western currencies, except the US$, have weakened by about 30% and prices of imported goods in Thai shops have increased by at least 30% during the same period, prices have actually increased by 60% where there logically should have been a reduction of 30%.

So where is the logic the prices of imported goods increase instead of decrease.

Thai logic: stronger Baht = lower import price = much higher profit increasing sales price.

they increase prices because quite obviously they can. quite often i find that some expensive goods which i am willing to buy are out of stock.

Correct. Goods are priced in order to maximize the profitability of the enterprise, not to satisfy anyone's sense of fairness. The people running these operations have an ethical reponsibility to their shareholders to ensure that it is so.

[meltingpot2015]

One of the post above nearly says Hedge F_ _ _.

The OP is right, higher value of Thai Bhat should reduce the cost of imports, unless ...

OP: what about import tariffs...

if import tariffs for certain products has changed. Then Big C may have to put prices-up.

Reasons for import tariffs been increased:

1) Thai Bhat is being artificially propped-up.

2) reduction in domestic money supply can act in favor of importers if the central bank overshoot the target (in reducing money supply).

3) a current account deficit may in-turn send currency out of the country, thereby reducing liquidity even more.

4) So increasing import tariffs for imported goods keeps this (occurrence) at bay.

Edited April 20, 2015 by meltingpot2015

[Anthony5]

One of the post above nearly says Hedge F_ _ _.

The OP is right, higher value of Thai Bhat should reduce the cost of imports, unless ...

OP: what about import tariffs...

if import tariffs for certain products has changed. Then Big C may have to put prices-up.

Reasons for import tarrifs been increased:

1) Thai Bhat is being artificially propped-up.

2) reduction in domestic money supply can act in favor of importers if the central bank overshoot the target (in reducing money supply).

3) a current account deficit may in-turn send currency out of the country, thereby reducing liquidity.

3) So increasing import tariffs for imported goods keeps this (occurance) at bay.

ALL Casino branded products, it are a lot from cheese to spaghetti to mayonnaise to salami, went steadily up during the second half of last year. Then were additionally increased by 15% within a period of 2 weeks I think end of last year or beginning this year.

I would be surprised if import duties for all kind of food products went up enormously in those same 2 weeks.

Keep in mind that the import duty has to increase by much more than 15% to have a price increase of 15% at the end product.

If for example a product cost FOB 100 Baht and the import duty is 30% the end product cost 130 Baht, Now if the import duty increases by 15% that would mean the duty is now 34.5 Baht and the end product 134.5 Baht, not 149.5 Baht.

Now take notice that all the ready made Thai and foreign food products also went up by the same margin when the applied the 15% price rise.

Steamed rice went from 10 to 12 Baht. All the Thai dishes increased by 15%. Volauvent went from 55 to 65 Baht. The mashed potatoes similar up with 15%.

There is no import involvede in those items since all is made in Thailand with Thai grown products.

Wait a minute. The minimum salary went up with 15%. Does that justify that every product had a 15% increase?

Similar price rises were seen at Makro and everywhere.

I posted in another thread some time ago that imported frozen mussel meat went from 185 to 210 Baht while at the same time they decreased the size from 1 Kg to 900 gram.

Last week I saw they had the same 1kg bags again, but now they are 235 Baht.

[Naam]

So what is your topic about?

I would have thought that anyone, with a brain at least the size of a green pea, would be able to comprehend the text in the OP.

So for you only.

If foreign currencies get weaker against the Thai Baht, it is only logical that importing goods from those countries becomes cheaper in Thai baht terms, especially since also shipping cost have declined because of the 50% decline in oil prices.

So since most Western currencies, except the US$, have weakened by about 30% and prices of imported goods in Thai shops have increased by at least 30% during the same period, prices have actually increased by 60% where there logically should have been a reduction of 30%.

So where is the logic the prices of imported goods increase instead of decrease.

Thai logic: stronger Baht = lower import price = much higher profit increasing sales price.

they increase prices because quite obviously they can. quite often i find that some expensive goods which i am willing to buy are out of stock.

Correct. Goods are priced in order to maximize the profitability of the enterprise, not to satisfy anyone's sense of fairness. The people running these operations have an ethical reponsibility to their shareholders to ensure that it is so.

but perhaps it's all just one big conspiracy against us Farangs because "they" don't like us?

[Sealbash]

I have not read every post so perhaps somebody has mentioned that many multinationals buy and pay for their stock often a few years beforehand . The contract is signed and payment is placed in a suspended account until a delivery date , perhaps two or three years in the future. For example if the parent company of Big C has purchased 500 tons of frozen peas at x amount in 2012 and the market for frozen peas was high then then the company still has to base it selling price on the 2012 price to make back the loss when they are delivered and sold in 2015 . It works both ways of course - it is the basis of the futures markets and most multi - national companies play this game as a hedge against inflation..

You must have a different experience as me. I have a friend who is general manager of a Carrefour hyper market in my home country.

In the past when I was still in business I also sold sometimes to supermarkets.

The multinationals pay 90 days AFTER delivery, not up front, and with many items specifically new in assortment they pay only what is sold.

They will pay some on 90 day no doubt , usually the smaller or local suppliers who do not have the clout to negotiate like the bigger suppliers, but for the big players, the big multi-nationals it will be on the signing the contract, the money will go to a third party , usually a bank , who will hold the funds until and it will not be released until an agreed date , usually the delivery date , or certain conditions are met. . Interest etc will be negotiated in the contract of course. Therefore most of the prices are based on what was agreed to by the supermarket, or whoever is the purchaser, on prices agreed to ,perhaps a few years previously and the costs such as shipping has been factored in based on the costs agreed to in the contract . This will explain why with lower oil prices the shipping costs have not fallen..

So to get to the point now. Big C is owned by Geant-Casino in France, while tesco lotus is owned by Tesco in the UK.

Their homebrand products, which in case of Big C is Casino, are shipped over from the head office in France who pays their stock in Euro's to their suppliers. So for the head office the cost stays the same.

The office in Thailand needs to pay the French office in Euro's, because the origin of goods is Euroland. So even with your scenario it still means that the Thai branch get their goods cheaper than 6 months ago, due to the devaluation of the Euro.

Now even if the shipping costs have stayed the same, they make up for only a fraction of the price per item.

Same will happen with the goods Tesco-Lotus gets from Tesco in the UK.

No Anthony, the price paid is what has been negotiated and agreed to at the time of the signing of the contract and the contract will specify what currency it will be in . That is unless they renege on the contract . Again it is speculation that the right currency has been chosen for either party.. It is the same as plying the futures market. The company takes a punt on the price they agree to today will return them sufficient profit when the goods are delivered in whatever specified time frame..The goods are probably not even grown or manufactured . Many farmers will grow crops on consignment to a supermarket chain or a food processing chain on a the basis of a future agreed delivery date for an agreed amount . If a storm wipes out the crop then the farmer is in deep shit but if the crop comes in then all parties should be satisfied and the farmer gets his money.

Is it also possible some of these futures contracts are signed in USD? As is oil, etc?

[Anthony5]

I have not read every post so perhaps somebody has mentioned that many multinationals buy and pay for their stock often a few years beforehand . The contract is signed and payment is placed in a suspended account until a delivery date , perhaps two or three years in the future. For example if the parent company of Big C has purchased 500 tons of frozen peas at x amount in 2012 and the market for frozen peas was high then then the company still has to base it selling price on the 2012 price to make back the loss when they are delivered and sold in 2015 . It works both ways of course - it is the basis of the futures markets and most multi - national companies play this game as a hedge against inflation..

You must have a different experience as me. I have a friend who is general manager of a Carrefour hyper market in my home country.

In the past when I was still in business I also sold sometimes to supermarkets.

The multinationals pay 90 days AFTER delivery, not up front, and with many items specifically new in assortment they pay only what is sold.

They will pay some on 90 day no doubt , usually the smaller or local suppliers who do not have the clout to negotiate like the bigger suppliers, but for the big players, the big multi-nationals it will be on the signing the contract, the money will go to a third party , usually a bank , who will hold the funds until and it will not be released until an agreed date , usually the delivery date , or certain conditions are met. . Interest etc will be negotiated in the contract of course. Therefore most of the prices are based on what was agreed to by the supermarket, or whoever is the purchaser, on prices agreed to ,perhaps a few years previously and the costs such as shipping has been factored in based on the costs agreed to in the contract . This will explain why with lower oil prices the shipping costs have not fallen..

So to get to the point now. Big C is owned by Geant-Casino in France, while tesco lotus is owned by Tesco in the UK.

Their homebrand products, which in case of Big C is Casino, are shipped over from the head office in France who pays their stock in Euro's to their suppliers. So for the head office the cost stays the same.

The office in Thailand needs to pay the French office in Euro's, because the origin of goods is Euroland. So even with your scenario it still means that the Thai branch get their goods cheaper than 6 months ago, due to the devaluation of the Euro.

Now even if the shipping costs have stayed the same, they make up for only a fraction of the price per item.

Same will happen with the goods Tesco-Lotus gets from Tesco in the UK.

No Anthony, the price paid is what has been negotiated and agreed to at the time of the signing of the contract and the contract will specify what currency it will be in . That is unless they renege on the contract . Again it is speculation that the right currency has been chosen for either party.. It is the same as plying the futures market. The company takes a punt on the price they agree to today will return them sufficient profit when the goods are delivered in whatever specified time frame..The goods are probably not even grown or manufactured . Many farmers will grow crops on consignment to a supermarket chain or a food processing chain on a the basis of a future agreed delivery date for an agreed amount . If a storm wipes out the crop then the farmer is in deep shit but if the crop comes in then all parties should be satisfied and the farmer gets his money.

Is it also possible some of these futures contracts are signed in USD? As is oil, etc?

Why would a European company who orders goods from another European company, the biggest part of those goods intended to be sold in Europe, get currency risk involved in the deal.

[meltingpot2015]

OP: The duty on Imported Cheese can be as high as 60%. This depends on the kind of cheese and where its been imported from. There are Trade agreements with Australia/New Zealand (Also CHina and Japan..so mainly other ASEAN countries) that has lower tariffs.

So we cannot simply say, it cost 1.59 Euroes in Europe, so converted to Thai Bhat it should cost 59.46 Thai Bhat (using todays Exchange rate 34.88), because obviously there is the freight, import duty, stocking costs etc. But I take your point that over a 9 fold price difference (250g President Camembert at 540 Bhat at Big C) is plain ridiculous.

It seems that whenever you go to Big C, the manager is calling you over..ah!, Mr Walking CashCow, step in to my office, then Bending you over the desk, asking you to pull your trousers down and ......please use your imagination to complete the story.

[meltingpot2015]

Some say ethics and morals dont come in to it. Others say, yes they (ethics) do, but only to justify the responsibility owed by the enterprise (the people running the enterprise..I should add..not the Starship) to their shareholders.

What about the responsibility owed to their loyal customer. Wonder if these so called "shareholders" buy imported cheese from Big C.

[Naam]

OP: The duty on Imported Cheese can be as high as 60%. This depends on the kind of cheese and where its been imported from. There are Trade agreements with Australia/New Zealand (Also CHina and Japan..so mainly other ASEAN countries) that has lower tariffs.

So we cannot simply say, it cost 1.59 Euroes in Europe, so converted to Thai Bhat it should cost 59.46 Thai Bhat (using todays Exchange rate 34.88), because obviously there is the freight, import duty, stocking costs etc. But I take your point that over a 9 fold price difference (250g President Camembert at 540 Bhat at Big C) is plain ridiculous.

It seems that whenever you go to Big C, the manager is calling you over..ah!, Mr Walking CashCow, step in to my office, then Bending you over the desk, asking you to pull your trousers down and ......please use your imagination to complete the story.

some prices for imported items are indeed outrageous. but then... nobody is forced to buy

[Sealbash]

I have not read every post so perhaps somebody has mentioned that many multinationals buy and pay for their stock often a few years beforehand . The contract is signed and payment is placed in a suspended account until a delivery date , perhaps two or three years in the future. For example if the parent company of Big C has purchased 500 tons of frozen peas at x amount in 2012 and the market for frozen peas was high then then the company still has to base it selling price on the 2012 price to make back the loss when they are delivered and sold in 2015 . It works both ways of course - it is the basis of the futures markets and most multi - national companies play this game as a hedge against inflation..

You must have a different experience as me. I have a friend who is general manager of a Carrefour hyper market in my home country.

In the past when I was still in business I also sold sometimes to supermarkets.

The multinationals pay 90 days AFTER delivery, not up front, and with many items specifically new in assortment they pay only what is sold.

They will pay some on 90 day no doubt , usually the smaller or local suppliers who do not have the clout to negotiate like the bigger suppliers, but for the big players, the big multi-nationals it will be on the signing the contract, the money will go to a third party , usually a bank , who will hold the funds until and it will not be released until an agreed date , usually the delivery date , or certain conditions are met. . Interest etc will be negotiated in the contract of course. Therefore most of the prices are based on what was agreed to by the supermarket, or whoever is the purchaser, on prices agreed to ,perhaps a few years previously and the costs such as shipping has been factored in based on the costs agreed to in the contract . This will explain why with lower oil prices the shipping costs have not fallen..

So to get to the point now. Big C is owned by Geant-Casino in France, while tesco lotus is owned by Tesco in the UK.

Their homebrand products, which in case of Big C is Casino, are shipped over from the head office in France who pays their stock in Euro's to their suppliers. So for the head office the cost stays the same.

The office in Thailand needs to pay the French office in Euro's, because the origin of goods is Euroland. So even with your scenario it still means that the Thai branch get their goods cheaper than 6 months ago, due to the devaluation of the Euro.

Now even if the shipping costs have stayed the same, they make up for only a fraction of the price per item.

Same will happen with the goods Tesco-Lotus gets from Tesco in the UK.

No Anthony, the price paid is what has been negotiated and agreed to at the time of the signing of the contract and the contract will specify what currency it will be in . That is unless they renege on the contract . Again it is speculation that the right currency has been chosen for either party.. It is the same as plying the futures market. The company takes a punt on the price they agree to today will return them sufficient profit when the goods are delivered in whatever specified time frame..The goods are probably not even grown or manufactured . Many farmers will grow crops on consignment to a supermarket chain or a food processing chain on a the basis of a future agreed delivery date for an agreed amount . If a storm wipes out the crop then the farmer is in deep shit but if the crop comes in then all parties should be satisfied and the farmer gets his money.

Is it also possible some of these futures contracts are signed in USD? As is oil, etc?

Why would a European company who orders goods from another European company, the biggest part of those goods intended to be sold in Europe, get currency risk involved in the deal.

Are all products sourced by a Euro company sourced in a country using the Euro as currency? Nothing from outside the European Union? South America perhaps?

When a Euro country purchases oil from Saudi Arabia, it is traded in USD. You may not like it, but it is a fact for now. Trading futures in the USD stabilizes possible losses due to currency fluctuations. Simple economics, really.

[meltingpot2015]

OP: The duty on Imported Cheese can be as high as 60%. This depends on the kind of cheese and where its been imported from. There are Trade agreements with Australia/New Zealand (Also CHina and Japan..so mainly other ASEAN countries) that has lower tariffs.

So we cannot simply say, it cost 1.59 Euroes in Europe, so converted to Thai Bhat it should cost 59.46 Thai Bhat (using todays Exchange rate 34.88), because obviously there is the freight, import duty, stocking costs etc. But I take your point that over a 9 fold price difference (250g President Camembert at 540 Bhat at Big C) is plain ridiculous.

It seems that whenever you go to Big C, the manager is calling you over..ah!, Mr Walking CashCow, step in to my office, then Bending you over the desk, asking you to pull your trousers down and ......please use your imagination to complete the story.

some prices for imported items are indeed outrageous. but then... nobody is forced to buy

nobody is forced to buy

I am not buying your comment above. Kindly provide the OP with a choice where he can purchase the goods he has mentioned (apart from Big C). That's basic economics..Choice.

If there was price competition, this would drive down the price of President Camembert 250 gram Cheese. Instead, Big C is charging the OP whatever price it wants. The excuses, reasons, justifications are:

The business should be allowed to maximize profits because it owes a responsibility to its shareholders.

If there was price competition.. (and this is also conditional upon, having price competition without collusion. That is, both companies not getting together and fixing prices..of course then there would be a competition commission or such to investigate and penalize the offending party. The competition commission in Australia has often adjudicated between the two major retailers Woolworths and Coles. As I recall both chains have been fined for things like offering spectacular deals on reduced price petrol when customers shop at their stores)

In order to balance the responsibility owed to shareholders and the responsibility owed to the consumer, we have price competition. It's a check against the business charging reduculous amounts. To use an analogy from soccer, If there is no price competition, this is the same as giving one team (say Big C) an open goal. Big C could score as many goals as they want.

If we were to accept the Futures argument (I am not convinced personally). I recall that the member putting it forward mentioned that all multinationals take part in this. So this would need to be factored in when the businesses set the prices. But that doesen''t excuse NOT having price competition between two or more businesses. To give it another context: Does participating in the futures market mean the business does not have to participate in price competition?

Even if the futures argument holds, we are still left with a business that has made profits to satisfy their shareholders (this part is fine...that's what the business is there to do), but also left a really bad taste in the mouth of the customer that keeps buying the product, not because he's forced to but because he has to.

[lostoday]

Even if the futures argument holds, we are still left with a business that has made profits to satisfy their shareholders (this part is fine...that's what the business is there to do), but also left a really bad taste in the mouth of the customer that keeps buying the product, not because he's forced to but because he has to.

What is the difference between between forced and "he has to?" If habit is forcing you to buy you are still forced to buy.

When I came to Thailand I gave up beer and beef and cheese. In the West I gave up women, bum guns and affordable housing. All depends on what is important to you.

I find not eating cheese and beef improves my quality of life and bum guns improves the way I smell and affordable housing gives me more money to spend on the important things like women. Up to you.

[fred Kubasa]

You seem to be an above average/intelligent/curious person seeking answers which means you don't belong and will not thrive here -- get out while you still can !

[Anthony5]

I have not read every post so perhaps somebody has mentioned that many multinationals buy and pay for their stock often a few years beforehand . The contract is signed and payment is placed in a suspended account until a delivery date , perhaps two or three years in the future. For example if the parent company of Big C has purchased 500 tons of frozen peas at x amount in 2012 and the market for frozen peas was high then then the company still has to base it selling price on the 2012 price to make back the loss when they are delivered and sold in 2015 . It works both ways of course - it is the basis of the futures markets and most multi - national companies play this game as a hedge against inflation..

You must have a different experience as me. I have a friend who is general manager of a Carrefour hyper market in my home country.

In the past when I was still in business I also sold sometimes to supermarkets.

The multinationals pay 90 days AFTER delivery, not up front, and with many items specifically new in assortment they pay only what is sold.

They will pay some on 90 day no doubt , usually the smaller or local suppliers who do not have the clout to negotiate like the bigger suppliers, but for the big players, the big multi-nationals it will be on the signing the contract, the money will go to a third party , usually a bank , who will hold the funds until and it will not be released until an agreed date , usually the delivery date , or certain conditions are met. . Interest etc will be negotiated in the contract of course. Therefore most of the prices are based on what was agreed to by the supermarket, or whoever is the purchaser, on prices agreed to ,perhaps a few years previously and the costs such as shipping has been factored in based on the costs agreed to in the contract . This will explain why with lower oil prices the shipping costs have not fallen..

So to get to the point now. Big C is owned by Geant-Casino in France, while tesco lotus is owned by Tesco in the UK.

Their homebrand products, which in case of Big C is Casino, are shipped over from the head office in France who pays their stock in Euro's to their suppliers. So for the head office the cost stays the same.

The office in Thailand needs to pay the French office in Euro's, because the origin of goods is Euroland. So even with your scenario it still means that the Thai branch get their goods cheaper than 6 months ago, due to the devaluation of the Euro.

Now even if the shipping costs have stayed the same, they make up for only a fraction of the price per item.

Same will happen with the goods Tesco-Lotus gets from Tesco in the UK.

No Anthony, the price paid is what has been negotiated and agreed to at the time of the signing of the contract and the contract will specify what currency it will be in . That is unless they renege on the contract . Again it is speculation that the right currency has been chosen for either party.. It is the same as plying the futures market. The company takes a punt on the price they agree to today will return them sufficient profit when the goods are delivered in whatever specified time frame..The goods are probably not even grown or manufactured . Many farmers will grow crops on consignment to a supermarket chain or a food processing chain on a the basis of a future agreed delivery date for an agreed amount . If a storm wipes out the crop then the farmer is in deep shit but if the crop comes in then all parties should be satisfied and the farmer gets his money.

Is it also possible some of these futures contracts are signed in USD? As is oil, etc?

Why would a European company who orders goods from another European company, the biggest part of those goods intended to be sold in Europe, get currency risk involved in the deal.

Are all products sourced by a Euro company sourced in a country using the Euro as currency? Nothing from outside the European Union? South America perhaps?

When a Euro country purchases oil from Saudi Arabia, it is traded in USD. You may not like it, but it is a fact for now. Trading futures in the USD stabilizes possible losses due to currency fluctuations. Simple economics, really.

So you want to tell us that French cheeses are sourced from Saudi these days?

Probably their pork salamis as well?

Please if you want to add something to the conversation stay on topic and don't try to sound interesting with ridiculous statements.

I agree that there are probably a few products that may be sourced from outside the European union, but the majority isn't, you understand that the EU is quite large these days.

[Anthony5]

You seem to be an above average/intelligent/curious person seeking answers which means you don't belong and will not thrive here -- get out while you still can !

Wow that took 139 posts to get the "if you don't like it go home" brigade to find the thread.

You must be proud of yourself. What was your previous username again?

[meltingpot2015]

Even if the futures argument holds, we are still left with a business that has made profits to satisfy their shareholders (this part is fine...that's what the business is there to do), but also left a really bad taste in the mouth of the customer that keeps buying the product, not because he's forced to but because he has to.

What is the difference between between forced and "he has to?" If habit is forcing you to buy you are still forced to buy.

When I came to Thailand I gave up beer and beef and cheese. In the West I gave up women, bum guns and affordable housing. All depends on what is important to you.

I find not eating cheese and beef improves my quality of life and bum guns improves the way I smell and affordable housing gives me more money to spend on the important things like women. Up to you.

Let me break-it down..IF you are forced - are you making a choice? No.. Right?

If you have to ...thats a need. Food is a need. its not a want..It's not a designer t-shirt. Like this article says:

http://frugalliving.about.com/od/frugalliving101/qt/Wants_vs_Needs.htm

It dosent matter if you are talking about "Western" societies or places like Thailand (I think even western societies are more collectivist these days), food is a need.

Hip hip Hurray!, you have discovered that certain foods are bad for you. YOU discovered that and you made the change (be it by yourself or with the support of loved ones). But it came from within. Right?. Not because someone told you, give-up Beef or give up Beer. For some it may be a lifestyle choice because of the stage in their life, due to older age or illness,(lets not forget some foods are particularly bad if someone dosen't lead an active lifestyle) but the change has to be made by the person. Not even doctors orders is sufficient sometimes.

So, change your lifestyle if its important to you by all means (I am not going to get into changing lifestyle for a loved one..its way too complex and need to stay on topic), but not because you have to (again..I am referring to a need) pay ridiculous amounts. Yes, its for an imported food, but its one of the OPS needs. No one has suggested where the OP could purchase the same product elsewhere.

If what you say is correct, I could provide many examples, that are actually bad. i.e. could leave someone in a worse position. Gambling is one example (Of course there is that chance that it could leave you in better position), But many still do it. More often than not it leaves someone in a worse position.

What you are suggesting is..look, I've done it (given-up beer and beef), so should you. It makes no sense. The OP shouldn't need to stop eating cheese because Big C put the prices-up by such a large margin. Your reason for stopping beef and beer are because like you say it improved your quality of life. (Personally, I don't think a slice of Camembert is bad..its one of the healthiest cheeses around. You could do far worse on the health scale when it comes to cheeses. The OP may feel a slice of cheese improves his quality of life..it may give him a boost of energy or improve his mood. Dont forget quality of life can work both ways..so having something can also improve the quality of life) What about "I stopped eating my favorite cheese, because the place where I have always shopped is charging over 9 times the amount for which its available where its produced).. What kind of reasons is that. Thats not because it's important for the OP.

Also, be careful when you use words like "habit". I know you are referring to a personal habit, But it could backfire, in a situation where someone has become accustomed to a certain food or drink. The French are renown for eating cheese, eating snails, frogs, drinking wine. So telling someone to stop eating cheese because it improves the quality of life can be offensive if you are from a french background.

Happen to read a post from yesterday, where ThaiVisa members From UK have mentioned that they ask family members and friends to bring their favorite Tea Bags, PG TIps and Yorkshire Tea when visiting Thailand:

http://www.thaivisa.com/forum/topic/818955-anyone-notice-their-favs-disappearing-from-villa-markets/#entry9326546

Tea drinking plays a huge part in the British culture. If you tell a British person stop drinking tea because it has too much caffeine, he would probably tell you where to get off. Stopping Cheese, beer has worked wonders for YOU (actually I think its more diary produce??. if I am not mistaken, not cheese in particular). Tell us the good news but don't impose it.

[lostoday]

Tea drinking plays a huge part in the British culture. If you tell a British person stop drinking tea because it has too much caffeine, he would probably tell you where to get off. Stopping Cheese, beer has worked wonders for YOU (actually I think its more diary produce??. if I am not mistaken, not cheese in particular). Tell us the good news but don't impose it.

Where I come from coffee is quite important. The doctor told me to stop so I did. I never drank milk, I drank beer and whiskey and the doctor told me to stop doing that. I drank and ate cheese and smoked cigarettes and cigars. The doctor told me to stop all those things. The doctor also told me to stop eating fried foods and to exercise daily.

I know the difference between need and want. Now I don't have to drink or smoke. I know the difference between a habit and a need.

In Thailand beef is awful, cheese is too expensive and beer is swill, better fed to Japanese cattle than humans.

Thailand has great women, wonderful bum guns and affordable housing.

I belong in Thailand and I've known that for a long time. Perhaps you don't?

As a young man in my teens I was well traveled and exposed to many different cultures and lands. I imagine you were not. I adjust easily to different countries. I imagine you don't. It's your parents fault. Had they exposed you to many other cultures you would have found out the relative unimportance of tea and cheese.

Edited April 22, 2015 by lostoday

[meltingpot2015]

Our family moved from South East Asia to Europe when I was a teenager.

[IMA_FARANG]

On the original topic..... the basic mistake you are making is that just because such a world-wide corporation happens to have it's world-wide headquarters in the Eurozone it does not normally buy and sell the produce it markets in the Eurozone in Euro or purchases the produce and goods it sells n Thailand in Thai Baht.

Big C for example sells Bananas in Thailand , but I would bet that a large majority of the Bananas it sells worldwide come from Central America not Thailand.

I would expect that Big C grows very few Bananas in France especially in the winter, but it sells many Bananas over the Christmas and New Year period in Europe.

What a large corporation like that does is secure it's supply of produce in areas where those crops are grown many months ahead, like Bananas or Mangos, by making agreements with suppliers in those growing areas far ahead of the planned selling dates and pre-paying or at least negotiating a price for the products with the growers months ahead of time.

That's the only way they can insure a known and reliable supply of produce available in the winter when demand is higher.

That also means that although currency fluctuations do have some effect on the price of produce in their stores world-wide, by the time the produce actually appears in the stores, the price they need to charge to make a profit was decided many months before, when the production contract was negotiated with the produce supplier at that time.

That is what being a world-wife company means.

So the ides that just because the Euro may have declined against another currency does not necessarily mean that the price of a product in that country will necessarily be cheaper as the currency declines in the area where the product is sold.

The "break-even" price for a particular product may have been determined many months before it appears in a store for sale.

Edited April 24, 2015 by IMA_FARANG

[Anthony5]

On the original topic..... the basic mistake you are making is that just because such a world-wide corporation happens to have it's world-wide headquarters in the Eurozone it does not normally buy and sell the produce it markets in the Eurozone in Euro or purchases the produce and goods it sells n Thailand in Thai Baht.

Big C for example sells Bananas in Thailand , but I would bet that a large majority of the Bananas it sells worldwide come from Central America not Thailand.

I would expect that Big C grows very few Bananas in France especially in the winter, but it sells many Bananas over the Christmas and New Year period in Europe.

What a large corporation like that does is secure it's supply of produce in areas where those crops are grown many months ahead, like Bananas or Mangos, by making agreements with suppliers in those growing areas far ahead of the planned selling dates and pre-paying or at least negotiating a price for the products with the growers months ahead of time.

That's the only way they can insure a known and reliable supply of produce available in the winter when demand is higher.

That also means that although currency fluctuations do have some effect on the price of produce in their stores world-wide, by the time the produce actually appears in the stores, the price they need to charge to make a profit was decided many months before, when the production contract was negotiated with the produce supplier at that time.

That is what being a world-wife company means.

So the ides that just because the Euro may have declined against another currency does not necessarily mean that the price of a product in that country will necessarily be cheaper as the currency declines in the area where the product is sold.

The "break-even" price for a particular product may have been determined many months before it appears in a store for sale.

I thought by now you would have figured out that we are not talking about seasonal products, as it has been clarified several times already throughout the thread, but homebranded products which are available all year round and are mostly directed at the European market ( read their home market).

French cheeses, duck pate, salami, powdered mashed potato, mayonnaise, chocolate or spaghetti are goods that are produced in Europe for Europe in Euro's and don't change in price with the season.

Edited April 25, 2015 by Anthony5

[lostoday]

Mayonnaise a quick note on the post above since the OP mentioned mayonnaise. Thailand has to be the mayonnaise capital of Asia. Lotus has 25 different kinds both in the refrigerated and canned sections of the store; from Kraft Miracle whip, Japanese Kewpi (4 different kinds) and a variety of colors of Thai mayonnaise and salad dressings.