Quote:
Originally Posted by Mickey76
He simply means the price of the product (milk,poultry etc.) is based on the cost of production plus a profit factor. The price of quota is not factored in at all. If for example the price of quota doubled tomorrow because 18 Hutterite colonies decided to try and buy more at the same time the price paid to the farmer for the milk or poultry wouldn’t change.
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It doesn't matter how they say they calculate the price. And frankly, a cartel saying they're not setting the price to be highly profitable isn't credible.
The ever-rising price of quota in the market demonstrates empirically that prices are much higher than they otherwise would be without the quota system.