A
maxim used in the
meat and
dairy business (the original
Just In Time supply chain) when a commodity's price drops below the cost to produce the
commodity. You only have two choices, sell at a loss or let it
rot in the barn.
Profit margins for meat producers are
razor thin, between 1 and 5%. It does not, then, take much to drive prices below production costs. For several years now hog farmers have been faced with a "sell it or smell it" proposition.
In sum, bring back the
McRib!