Saturday, August 09, 2014 2:56:49 PM
I worked for a poultry company, not only did they have plants to kill and cut the chickens, they had control over the chicken farms, as well as farmers who were raising the corn, etc to feed the chickens, as well as using the chicken poop as fertilizer for the fields that grew the feed.
This way they can control the supply costs, as well as the availability of the supply. If those sub-entities were a completely different company, they would have to compete with others for the materials, and thus be subject to competitive pricing and availability.
When a company is vertically integrated...basically, no worries.
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