Found this interesting reading the other day - the sheer power of large corporate leverage:
"Walmart grocery sales have increased [more] than those from Kroger, Safeway, and SuperValu grocery chains combined (for a total of about 145 billion in 2011), is uniquely positioned to actually cut small farmers' profits, by virtue of their sheer size and market power.2
“To maintain its low cost provider status, WMT [Walmart] uses a two pronged approach. First, it leverages its scale to exert buying power on its suppliers and obtains a lower price for its inventory than competitors.
Second, WMT is relentless on cutting costs across its supply chain and maintaining as lean a structure as possible. By doing these two things, the company is able to pass on its savings to customers while still maintaining margins that are equivalent or higher than competitors.
To note an example, even when the U.S. grocery market was feeling the impact of food price inflation in the latter half of 2012, Wal-Mart was able to lower its grocery prices and take share from competitors who had no choice but to raise prices to maintain their margins.”
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Today's Featured Article - Grain Threshing in the Early 40's - by Jerry D. Coleman. How many of you can sit there and say that you have plowed with a mule? Well I would say not many, but maybe a few. This story is about the day my Grandfather Brown (true name) decided along with my parents to purchase a new Ford tractor. It wasn't really new except to us. The year was about 1967 and my father found a good used Ford 601 tractor to use on the farm instead of "Bob", our old mule. Now my grandfather had had this mule since the mid 40's and he was getting some age on him. S
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