Posted 1/29/2019 17:11 (#7282108 - in reply to #7281965) Subject: RE: Class 3 milk
S.C. Wisconsin
This is a typical business cycle when product is produced because there is profit, usually this leads to over expansion and surplus which leads to prices below the cost of production for many producers. Then there is a big shake out where only the the big efficient producers who are well capitalized left to produce the product. Then the remaining producer is big enough to control the production to the point where there will be no surplus products produced. If there is a surplus they cut production. This could happen in a lot agriculture production.