Pork Prices Plunge?

[wild west]

I don't necessarily agree.  The "big box" used to be the "little guy" at one point.  They were smart enough to build out their businesses with economies of scale, high efficiency ratios, etc., and now they're villified?  I don't get it:  Wal-Mart is the quintessential example of this, and also the quintessential success story.  Sam took huge chances by going into small town Americana that no one else would, became successful, grew the business, and now is looked upon as the evil empire, instead of a success due to a willingness to do something others wouldn't, risk taking, and hard work.  If the "little guy" is going to try and compete with the "big box" on price and price alone, with no difference in product and service, he's absolutely going to get crushed and rightfully so.  I'll support a "little guy" and pay more if he can bring a better product or better service to the table than what the "big box" can.  If he can't, sorry, but I'm voting with my wallet, as it's ludicrous to pay more for the exact same thing with no value addition.  The monopolistic fear mongering is hugely overblown and exaggerated.

Are there studies which show that there have been small businesses that have shuttered their buildings after the big guy comes to town?  Absolutely.  But there are endless examples of where the little guy has actually flourished once the "box" has come to town, by altering their product selections or providing different services that the big guy doesn't or can't.  Adapt or adios, it's that simple.  Look around any municipality and it's seen everywhere:  grocers, hardware, pharmacies, restaurants, etc., who do quite well after Kroger, HD, Walgreens, McDonalds, etc., have come to town.  I won't even get into the "Amazon Effect," as that's a different issue for another day.  The "Chicken Little" whine doesn't fly, nor should it.   

I don't remember whining the sky is falling. The theme of my post was that the the farms producing the pork or beef are the ones suffering the biggest losses when prices fall. If it costs more to produce something than you can sell it for you cant do that for very long. On the strictly retail side I agree with you that you have to compete or develop a value added strategy in order to survive. I'm as guilty as anyone for buying at the best price but I'm OK with paying more if it means the producer survives.

 

[gr0uch0]

I don't remember whining the sky is falling. The theme of my post was that the the farms producing the pork or beef are the ones suffering the biggest losses when prices fall. If it costs more to produce something than you can sell it for you cant do that for very long. On the strictly retail side I agree with you that you have to compete or develop a value added strategy in order to survive. I'm as guilty as anyone for buying at the best price but I'm OK with paying more if it means the producer survives.

Whine comment not necessarily directed at you, WW, more to those who want to play protectionist and complain about their loss of business as victims instead of adapting.  I grew up in the oil patch, learning and knowing of the boom and bust nature of the industry.  My parents could have whined and licked their wounds that it wasn't fair, unprofitable to produce during the lean times, or to suck it up and adapt.  They adapted.  Like I said, I'll buy the smaller guy and pay more if there's either some benefit (tangible or perceived) that I can derive from doing business with him or her.  If not, I won't.