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<blockquote data-quote="novaman" data-source="post: 682070" data-attributes="member: 2744"><p>While you are right, this sort of statement implies that the answer to this problem is simple. There is no doubt that cutting down on supply will result in higher prices. However, it seems very few people understand how difficult it is to simply "flip the switch". The spike in price in '07 stimulated a sharp increase in production in order to meet increased demands. Obviously that demand has dried up, but you can't just cut production in a week or even a year. It takes time for corrections in production to occur. The point I'm trying make is that while cutting production to stimulate price increase is a positive move, we must also work to restore demand. I firmly believe that had it not been for this recession we would be cruising at a decent price right now.</p><p></p><p></p><p>Again you are right, but again I don't necessarily agree that this is the way to go. Under normal circumstances the bottom 5% would still likely be making a profit in a well managed herd. Just because they are on the bottom doesn't mean they are garbage. When prices return those 5% would be nice to have around. Some may think my thinking is greedy and while it seems that might be so, I firmly believe in my plan. Replacements aren't overly high priced right now but they still don't come "cheap".</p></blockquote><p></p>
[QUOTE="novaman, post: 682070, member: 2744"] While you are right, this sort of statement implies that the answer to this problem is simple. There is no doubt that cutting down on supply will result in higher prices. However, it seems very few people understand how difficult it is to simply "flip the switch". The spike in price in '07 stimulated a sharp increase in production in order to meet increased demands. Obviously that demand has dried up, but you can't just cut production in a week or even a year. It takes time for corrections in production to occur. The point I'm trying make is that while cutting production to stimulate price increase is a positive move, we must also work to restore demand. I firmly believe that had it not been for this recession we would be cruising at a decent price right now. Again you are right, but again I don't necessarily agree that this is the way to go. Under normal circumstances the bottom 5% would still likely be making a profit in a well managed herd. Just because they are on the bottom doesn't mean they are garbage. When prices return those 5% would be nice to have around. Some may think my thinking is greedy and while it seems that might be so, I firmly believe in my plan. Replacements aren't overly high priced right now but they still don't come "cheap". [/QUOTE]
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