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<blockquote data-quote="Son of Butch" data-source="post: 1495293" data-attributes="member: 14585"><p>In addition to economy of scale... (I know of one that owns a creamery) </p><p>they get a substantial premium for volume delivered... which is set so high others can't qualify for it.</p><p></p><p>With a volume premium, they never get hit as hard by a downturn and bcs they're always running full steam there is </p><p>never a lag time to gear up to capitalize on any market uptick. It all adds up to their bottom is never as low and their highs are always higher than other competing farmers.</p></blockquote><p></p>
[QUOTE="Son of Butch, post: 1495293, member: 14585"] In addition to economy of scale... (I know of one that owns a creamery) they get a substantial premium for volume delivered... which is set so high others can't qualify for it. With a volume premium, they never get hit as hard by a downturn and bcs they're always running full steam there is never a lag time to gear up to capitalize on any market uptick. It all adds up to their bottom is never as low and their highs are always higher than other competing farmers. [/QUOTE]
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