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...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
