3 ms·
You simply don't understand economies of scale. If you produce 10,000kg of meat a month and decide to sell it off to private customers 0.5-3kg per sale on some
by jajko 2y ago
You simply don't understand economies of scale. If you produce 10,000kg of meat a month and decide to sell it off to private customers 0.5-3kg per sale on some farmer market, you need somebody spending whole day managing sales, delivering stuff to sales point, managing unsold meat and so on. If you don't manage to sell it and it goes bad, you tank and soon whole business is over, this ain't some pottery.
Then you have hypermarket chain coming in and telling you they will buy 5,000kg per month, regularly, for next 12 months at lower price, just show it into back of that truck in 1 hour. For much lower price. Still farmers sell to them, so even with their additional 20-50% on top of the cost its cheaper for end customers. Or they subsidize some meat for few days to lure you into shop and bus some other necessities to balance this smaller income.