A job that entails discussing matters economic that is?
The big meat processors have been under constant pressure from supermarkets to keep prices down and to produce special offers for shoppers as food inflation has taken off just as household budgets have shrunk with the recession. This despite the fact that beef prices on the commodity markets have been near historic highs, because the cost of grain needed to feed cattle has also been at record highs, and because the Chinese have been buying up stocks. In a market that functioned properly, prices would adjust to bring supply and demand into balance, but near-monopoly powers have long distorted the UK food market.
Agreed that in a competitive market prices will adjust to keep supply and demand in balance. That\’s what they\’re for in fact. But, err, what is the evidence that prices have not adjusted to bring supply and demand into balance? I\’ve not heard of shortages of meat in the shops*. And I\’ve not heard of vast amounts being thrown away because no one will buy it. I must assume therefore that prices have adjusted to bring supply and demand into balance.
Why doesn\’t Ms. Lawrence assume the same thing?
* Yes, there\’s a product recall going on. Not the same thing at all.