used in the meat
business (the original Just In Time
supply chain) when a commodity's price drops below the cost to produce the commodity
. You only have two choices, sell at a loss or let it rot
in the barn.
Profit margins for meat producers are razor
thin, between 1 and 5%. It does not, then, take much to drive prices below production costs. For several years now hog farmers have been faced with a "sell it or smell it" proposition.
In sum, bring back the McRib