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?>
Its not a conspiracy even though it may be an undesirable situation.
Why should supermarkets charge less for pork if consumers will pay more?
Why should packers pay more if hogs are still driving up the driveway at
$0.16?
This scenario militates toward more vertical integration since both the
retailer & packer are making money. When producers sell directly to
consumers that is precisely what they are doing (even if they don't realise
it). Most family farm operations are financed with equity or debt capital.
Perhaps a CSA for meat could attract "venture" type capital for expansion
or neccesary upgrading of facilities & breeding stocks?
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