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Originally Posted by 1010011010
Being farmers, they don't have a lot of free cash laying around to buy the capital required.Buy his way into the industry.
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There are three other companies that already do what he does, so obviously someone has the money.
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Why don't you understand that this industry is already controlled, but not by a monopoly (unless you consider the government a monopoly), and it is regulated for a very good set of reasons.
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Well, it is controlled by a group of companies who keep the prices inflated. You're scared that Hettinga will raise the prices once he is a monopoly. Well, they are already high, and he already has competitors who do what he does, so he obviously won't be a monopoly.
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No, his milk just doesn't include the various fees and dues you find included in the prices of other milk produced in volumes that exploit economies of scale.
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And? It's still cheaper.
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He avoids these fees and dues by exploiting loopholes put in place to protect small local operators from being burdened by these fees. Now that he's a big, producer, though, he doesn't deserve the artifical protection of not having to pay to particiapte.
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Why doesn't he deserve them?
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It's only better because it exploits regulatory loopholes. Modify the loophole so it can't be exploited in this way and his milk suddenly costs just as much as everyone elses.
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Or maybe deregulate the industry and everyone's milk is just as cheap as his.