Sunday, October 31, 2010

Price & Production

(click on image to enlarge)

How many times have we heard the connection between price and production is the strongest force on earth? Well apparently, that idea only applies to farm milk.

The above graph shows absolutely no connection of price to production of butter. This raises an important question. Since most butter is produced as a commodity by cooperative, how effective is any maximizing returns to producers? Is anybody watching the store?

1 comment:

  1. Our co-op could be making more butter for good money but there is more money to be made on selling cream to the icecream people.