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by yenwel 1651 days ago
The farm commodity hedge markets are dominated by players who leverage private access and knowledge to make massive margins. I think decentralizing this market (by anyone and their brother) would certainly benefit producers and end consumers by increasing transparency and thus lowering these transaction costs and providing liquidity. What you are talking about are auctions (like for pigs, fish or flowers) and this is already invented, centralized and corrupted and they set prices for producers and consumers in secret meetings and calls (before that wasnt even outlawed). For distribution, how easy is it to set up an ecommerce shop and for distribution you have a lot of thurd party logistics service providers. By increasing competition between these service providers of distribution etc you would again lower costs for producers and prices for consumer instead of relying on massively vertically or horizontally integrated supply chain players. Few benefits from massive monoculture productions (certainly not producers, consumers or the environment). Do you really think there are no scandals in centralized quality control systems?

Talking about price volatility. Costs for producers and prices for consumers are increasing dramatically because central banks in the western world decided to print massive amounts of currency and buying zombie companies on the stock exchange. How are these currencies considered stable in any way? Look what is happening in is happening in Turkey or Lebanon. Even worse what the US is doing to the people of afghanistan.