Posted by BarnyardEngineering on February 22, 2022 at 11:20:23 from (161.69.121.34):
In Reply to: No Shortage posted by john in la on February 22, 2022 at 07:14:09:
redforlife, you go to all that effort of explaining how the supply chain works and then you go and completely ignore it as you appear to accuse the other processors of price gouging.
The processing is an integral part of the... process, I guess. You have live cows on one end and meat on styrofoam trays on the other. When the processing capacity is reduced significantly, and demand stays the same, you end up with a shortage of processed meat and a surplus of live animals.
Sure there is no shortage of beef... ON THE HOOF. Fat lot of good that does the average consumer who thinks beef comes from the grocery store. To put it another way, you can't just bite a hunk off of a cow and eat it.
The shortage is in PROCESSED beef, and it's due to a bottleneck in the processing not necessarily a shortage of raw materials. Simple supply and demand economics apply here. When the supply goes down the price goes up. Demand does not have to go up. The meat processing plants are going full bore but they can't keep up with normal demand, that necessitates an increase in price of the finshed product to curtail demand some until, or instead of, bringing more processing online.
On the other side of the coin, there are now too many live cows because the processers can't kill them fast enough. Again, simple supply and demand economics. Demand has dropped because that plant burned, and even though there are the same number of cows available, that is, supply has not changed, the price has to go down due to reduced demand.
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