Grainaries buy from farmers, high supply and low local demand. Grainaries generally don’t have competition. That means grainaries set the price and farmers don’t have any negotiating power.
The grainary is now in charge of one thing and one thing only: logistics. The grains need to be distributed over a vast amount of distance, usually by train or by boat. You almost never see a grain elevator unless it is adjacent a railroad.
They’re often owned by the same business, or cartelized interests.
In the US, during the oil boom of the early 20th century, the race to control the oil market was ultimately about controlling the storage and rail network. Rockefeller didn’t become the richest man in the country by sinking wells.
That’s why you’ll see “Railroad Commissioner” in states like Texas be the body that governs the O&G industry.
For people who don’t know how agriculture works:
Grainaries buy from farmers, high supply and low local demand. Grainaries generally don’t have competition. That means grainaries set the price and farmers don’t have any negotiating power.
The grainary is now in charge of one thing and one thing only: logistics. The grains need to be distributed over a vast amount of distance, usually by train or by boat. You almost never see a grain elevator unless it is adjacent a railroad.
Well whose fault is that, the granary or the railroad?
They’re often owned by the same business, or cartelized interests.
In the US, during the oil boom of the early 20th century, the race to control the oil market was ultimately about controlling the storage and rail network. Rockefeller didn’t become the richest man in the country by sinking wells.
That’s why you’ll see “Railroad Commissioner” in states like Texas be the body that governs the O&G industry.