contracts but will still exceed production, that should read.
It has exceeded production since 2020/21, and also did in 2018/19, per the same graph in the submission (which isn't itself so dramatically titled).
It has exceeded production since 2020/21, and also did in 2018/19, per the same graph in the submission (which isn't itself so dramatically titled).
It's not continuously harvested (spring and winter crops) so there'd have to be a buffer anyway, and you wouldn't know in advance if that's going to be good bad or average.
Also I assume good stock control (not necessarily just FIFO, but also relegating the good stuff to animal feed as it ages) so really running a slight deficit for several years is the same as a big deficit for one year. (Or better even - less implied risk for the next year, doesn't seem so volatile.)
Also, agriculture produce's price fluctuates a lot. Farming has a long feedback time, so by the time you harvest, the state of the market is no longer the same. Anything that can be stockpiled will be stockpiled to wait for the right time. This is not normally done by the farmer themselves, but the traders. Then it's just FIFO, the oldest grains at the bottom of the silos will be taken out first.
[0] https://www.npr.org/2019/01/09/683339929/nobody-is-moving-ou...
If we don't consume it, don't reward producing it.
Having nothing in inventory is perfectly efficient, but also perfectly fragile in an environment where a major wheat producer is attacked by a madman.
There has to be a balance, and cheese is easy to store and it improves with age.
Being paid to “overproduce” is equivalent to being paid to add supply chain robustness in this case.