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Dire predictions?
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<blockquote data-quote="alexfarms" data-source="post: 1106496" data-attributes="member: 8677"><p>"In fact, the fewer producers, the more demand per unit produced, and the better each producer does."</p><p>I don't completely understand what Mr Helming is getting at. I do know that less production doesn't increase demand. Less production decreases supply and increases price and too much price increase will eventually lessen demand. The current economics in the beef industry is less supply is increasing prices. I don't think there is any signs of increased demand increasing current prices. In fact, when you consider that US per capita beef consumption has declined 41% since 1975, its pretty obvious that demand is decreasing. I don't think a thriving industry will be able to continue to decrease supply in order to increase profitability.</p></blockquote><p></p>
[QUOTE="alexfarms, post: 1106496, member: 8677"] "In fact, the fewer producers, the more demand per unit produced, and the better each producer does." I don't completely understand what Mr Helming is getting at. I do know that less production doesn't increase demand. Less production decreases supply and increases price and too much price increase will eventually lessen demand. The current economics in the beef industry is less supply is increasing prices. I don't think there is any signs of increased demand increasing current prices. In fact, when you consider that US per capita beef consumption has declined 41% since 1975, its pretty obvious that demand is decreasing. I don't think a thriving industry will be able to continue to decrease supply in order to increase profitability. [/QUOTE]
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