Quote:
Originally Posted by bizaro86
The problem with using volatile input costs as a benchmark for a big raise is that they're volatile. Does anyone think they'll drop it next year if feed prices decline?
If only there was some other way to set prices that would take real time feedback...
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If input costs go down, yes, the price the PROCESSOR pays the farmer goes down.
Does that mean the IN STORE cost goes down? NO. This is why supply management prices are based on a cost of production model.
Beef is NOT supply managed. When beef prices took off at the start of the pandemic, do you think farmers were being paid more for their beef? No. The price the farmer was being paid was below average because the processing capacity was down, and there was lots of beef cattle waiting to be slaughtered.
Just because you as a consumer are paying more at the grocery store, it DOES NOT mean that farmers are being paid more for their efforts.