Hogs? Farming ? and a rerun ?

tom abeles (tabeles@tmn.com)
Wed, 16 Dec 1998 08:38:28 -0600

there was an article in the local paper which indicated that the
differential pricing between retail and the farm was due to the fact
that shackle space was at its limits. Thus packers can't meet demand at
the retail and can charge based on this demand. On the other hand, more
pigs at the head of the line means the packers can force their raw
materials down in price.

Hmmm, is this a conspiracy- the packers control the marikets and the
price of the hogs--- seems that some producers would get smart and find
a way around the bottleneck-- pretty hard with no capital and then
having to go to new, high cost production, when the big processors can
undercut-
Have farmers been here before? Is this a rerun?

thoughts?

tom
abeles

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