Uk farmers are losing money on every egg they produce
(media.conspiracies.win)
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I'm perplex are the prices regulated? Why don't the farmers refuse to sell the eggs unless they are sold at a profit?
The problem is supermarkets are so aggressive with their pricing, and are slow to raise prices. There will be some farmers out there that bought significant amounts of say chicken food on the old lower prices that are still able to make a profit with the current prices, but this is a temporary situation at best. Supplying a supermarket with anything is not a business I would like to be in.
Aka The Cobweb Theory
Or, the hog cycle.
Price goes up, so production goes up, leading to over supply and price crash, to under supply, to price rises - due to the lag between price change and hog life cycle.