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> Throwing out food feels bad.

There's a positive side effect where your purchase impacts Costco's sales volume, which impacts their negotiating position with the suppliers, which makes the same product cheaper for everyone else.

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You mean, it's better to throw away milk, so you can screw farmers by proxy?

The farmers get to sell more milk.

have to sell more milk.

For an established cow farmer adding additional cows at marginal cost to receive additional revenue is economies of scale. Forcing them to allocate resources to the areas where they don't enjoy economies of scale is likely to raise their cost and not lead to optimal outcome.

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