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The closure of big distributors such as restaurants means that big orders get cancelled. These cancelations cause a glut at the point of production. However, t
by aazaa 7y ago
The closure of big distributors such as restaurants means that big orders get cancelled. These cancelations cause a glut at the point of production.
However, the article fails to mention the role that agricultural subsidies play in the oversupply. Regarding dairy in particular, consider:
> "... in 2015, the support granted to U.S dairy producers represented approximately C$35.02/hectolitre - the equivalent of 73% of the farmers' marketplace revenue. USDA data also reveals that US dairy farmers operate at a loss, and have a cost of production that is higher than what they earn from the marketplace."
https://markets.businessinsider.com/news/stocks/american-dairy-farmers-depend-on-government-subsidies-1015126442 https://markets.businessinsider.com/news/stocks/american-dai...
This has been happening for decades, leading to artificially suppressed food prices and market distortions across many categories.
- mjw1007 7y agoHistorically, one of the main purported justifications for agricultural subsidies has been to ensure that insert-country-name-here can be more nearly self-sufficient if some crisis comes along to make importing food difficult. That doesn't sound too silly today.
- heurifk 7y agoIt does sound silly if the food is left to rot on fields. Maybe we should also subsidize food transportation and storage or something.
- jelliclesfarm 7y agoIt has to be harvested first.