Short Supply Chain Fallacy Buy local is tribal but has quaint, emotive appeal. The EU is giving policy support to short supply chains, provided they do not harm intra-EU trade. But do they work in practice? The consultancy Agriculture Stratégies examined the economics and found the following:
Middlemen serve the functions of processing, transporting, marketing and other tasks. Reducing the number of middlemen either reduces the value-added (e.g., no processing), or increases the workload of the farmer. The farmer must become butcher, the baker, and the candlestick-maker all at the same time.
Investment is required by the producer to execute tasks previously accomplished by the middlemen.
Contrary to the subjecti...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
