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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Casaubon who wrote (42424)3/6/2000 10:48:00 PM
From: Joan Osland Graffius  Read Replies (1) | Respond to of 99985
 
Casaubo, >> Even if it did result in an increased profit per unit, it would probably negatively impact gross sales numbers

I am talking about "basic food suppliers" of which there are very few left in the business. I can count them with the fingers on one hand. BTW, cost to entry is prohibitive. Also I don't know of any substitutes. Unless we get rid of a lot of people the demand for ADM, Cargill, etc. products are stable or will increase with an economic slow down. I agree with you that costs may not increase profitability, but I saw these guys operate during the energy crises and when wheat was at $6+ a bushel, and corn and bean prices were out of site. These boys have been around for a while and they will get every pound of flesh they want out of the customer.

Joan