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Message
re: Meat prices spiking. Here is supposedly why.
Posted on 5/27/20 at 7:47 am to White Bear
Posted on 5/27/20 at 7:47 am to White Bear
quote:
decreased supply
I'd imagine it's more accurately issues in the supply chain rather than actual supply of beef, pork, or chicken.
1
Posted on 5/27/20 at 12:24 pm to Sasquatch Smash
quote:
I'd imagine it's more accurately issues in the supply chain rather than actual supply of beef, pork, or chicken.
Secondary level of meat processing is set up and projected on historical demand, fresh or frozen retail, fresh or frozen portion controlled for restaurants etc.
Suddenly, the demand for restaurant processing (a pretty substantial percentage of consumption) drops to zero and the demand spikes for fast-food patties and fresh or frozen retail. Processors and distributors like Sysco, who are shrink-wrapping and flash freezing 100,000 cases steaks, chickens, veggies a month and selling them in bulk quantities can't economically adjust their production for a short term demand issue, so they stop buying, and the retail packagers are at capacity.
The situation whacked the supply and demand curves.
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