Meat and poultry shortages on the way with big price increases for consumer's! What next.
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If the meat plants wind up going bankrupt, it will get even worse. It takes a lot of capital to restart these facilities and ramp them up once they shut down. Right now capital is getting in short supply as the government diverts it to for the purpose of paying people not to work.
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Packers certainly not going bankrupt when they are making $1k per carcass. Bigger plants in US are grossing over 1/2 mil US$ every day they run.Originally posted by Austrian Economics View PostIf the meat plants wind up going bankrupt, it will get even worse. It takes a lot of capital to restart these facilities and ramp them up once they shut down. Right now capital is getting in short supply as the government diverts it to for the purpose of paying people not to work.
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Cheap food policy means that they got it wrong. Processor consolidation worked until lately. No matter the commodity, we have lost our local processing processing capacity and now we have nothing to fall back on. What does the future hold? A certain amount depends on the consumer to support local industry.
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I am optimistic that the pendulum of excess regulation that pushes the smaller operators out of business, or off shore, has finally swung too far, and will now start to come back thanks to COVID showing the weaknesses in our system.Originally posted by farmboy1 View PostCheap food policy means that they got it wrong. Processor consolidation worked until lately. No matter the commodity, we have lost our local processing processing capacity and now we have nothing to fall back on. What does the future hold? A certain amount depends on the consumer to support local industry.
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