1. Economies of Scale Simulator
See why "Getting Bigger" makes food cheaper but squeezes out small farmers.
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Farm Size
10 Acres
Cost to Produce 1 Corn
$5.00
Financial Breakdown
Fixed Costs (Tractor/Barn):
$1,000
Total Output:
200 units
Cost Per Unit:
$5.00
Small Farm: You can't afford big machines, so your labor costs are high. You must sell corn for $5 to break even.
2. The Global Commodity Chain
From Field to Fork. Agribusiness integrates all these steps.
Vertical Integration
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1. Inputs
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2. Production
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3. Processing
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4. Distribution
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5. Consumption
Click a link in the chain to see what happens there.
3. The Impact of Corporate Farming
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Decline of Family Farms
Small farms cannot compete with the low prices of corporate farms (Economies of Scale). They create contracts with corporations (e.g., Tyson Chicken) or sell their land.
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The "Cool Chain"
Refrigeration allows perishable items to be grown globally. We get strawberries in winter because they are flown in from Chile, defying traditional Von Thünen rings.
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Interdependence
If a drought hits Brazil (Soybeans), meat prices rise in China (Pig feed). The global commodity chain connects everyone.