By Jim Munsch, Coon Valley, Wisconsin — Take a stroll through the meat market, do some math, and your first inclination is to say that direct marketing of beef will pay a producer.
We farmers have been basically saying that for years. Ever since I can remember, I’ve heard uncles, cousins and neighbors complain about store prices for food, and the fact that the “middleman” is making all the money. Behind this emotional observation is an acknowledgement of a real economic truth: Middlemen tend to be a small number of for-profit organizations with considerable economic power compared to individual producers of much smaller scale and with feeble economic power. In some cases their performance can be inconsistent, resulting in equally inconsistent demand and prices for your products. Continue reading “Methods for calculating marketing costs”