Costco sells its rotisserie chicken at the back of its stores at a loss to lure customers into the story to buy other things. Up until now those chickens by and large have come from Big Ag poultry producers like Tyson, Pilgrims Pride, and Perdue. But Costco is now bringing chicken production in house.
Have you ever wondered why all the gasoline stations in your neighborhood more often than not are selling fuel at the exact same price? A few summers ago I was traveling through Michigan when I needed gas. I pulled into a Mom-and-Pop and filled up for $1.91 a gallon which I thought was a good price given a few stations I passed with gas over two bucks. As I went inside to pay I overheard this conversation on the phone from what turned out was the station owner:
“… well Shell was one-ninety-one yesterday … same at BP …
Early, very early in the Trump Administration, I postulated that perhaps the POTUS wasn’t all that passionate about all things agricultural to the determinant of Big Ag in general and the individual farmer in particular.