
This is a great video to use as a way of illustrating how a sudden change in market demand can reduce the returns made on business investments. In this example, many dairy farmers have invested into turning their operations into organic milk production (to win a share of the growing and higher margin organic milk market). However, the credit crunch has led to a sharp fall in demand and the main milk wholesaler (Dairy Crest) has reduced the farmgate price paid to its suppliers.
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