Economies of Scale

This is not a phrase that I have ever really had a relationship with. I am not sure I ever even gave its real meaning any thought. I now understand it to mean that the realities of economics are intricately tied in to the scale of your endeavor. Efficiency is a measure of how far your efforts go, how far your money goes, the bang you get for your buck if you will. That is the single greatest challenge for the small farmer. Price reflects this efficiency relationship, it is the essence of cheap food. Get big or get out. Thanks Earl Butz.

So lets talk about Walgreens. I have watched the erection of a Walgreens happen over the past 18 months on a corner I happen to commute by every day on my way to work ("other work"). It has been an interesting little "note to self" each day... got the foundation laid, ooh look the windows are in, putting up the sign today, paving the parking lot, Opening Day! It was almost like I cared after a while... it was my Walgreens.

That game lost its possibility once the doors opened to customers. I have still not been in my Walgreens... looks nice though.. wonder how they are holding up against the Rite Aid across the street?

ANYWAY... they have a really nice message sign out front, you know those ones that have the numbers and letters formed by the little red dots, each day a new message of promise and appeal..


The message today was: "A Dozen Eggs  -   99 cents" . That is a little over 8 cents an egg.  I was trying to think about what else I can buy for 8 cents. Even my favorite little sniblets (my word, not sure where I got it)  of junk food candy run me a dime.


Economies of scale, cheap food... what's the cost?


ps.


We are up to 15 lambs now... more on the way... Spring Newsletter coming out this weekend! Stay Tuned!