Wednesday, February 20, 2019
In the News: Pricing of Milk
This year so far take out gross sales have rock-bottom and dairy farmers are stuck with large amounts of parentage that they cant do anything with. This called for them to lower the price of the milk to under three dollars a congius in hopes that wad would buy more milk. The content of this article is germane(predicate) to the class because it covers supply and demand. In addition to this it also covers business strategy. ultimately dairy farmers were making a lot more money in 2014 because there was a very high demand for milk.When milk ales decreased the dairy farmers were left with inventory that they could not do anything with. At this nettle they had to make a decision to try to save some of the inventory they had left over. In regards to food products Its a little different compared to items that do not have a sell by date. Milk expires subsequently a certain day and it can no longer be sold. For this reason the dairy farmers and retailers were forced to cut costs to try and startle more people to but more milk. This could ultimately fix their buy in problem.By lowering he cost they were hoping that people would buy more milk. If people purchase more milk it can potentially help them get rid of left over inventory. This can also be big(p) for dairy producers because it they are losing money on every gallon of milk they sell. If they purchased more heavy machinery and hired more workers they may have to present people off due to plummeting costs.