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Re: whywetrance post# 38985

Saturday, 08/09/2014 2:56:49 PM

Saturday, August 09, 2014 2:56:49 PM

Post# of 40986
I would agree that this is a strong possibility. This is called "Vertical Integration", where companies have sub-entities that run the processes to create their product all the way down to the rawest material.

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.