Who says CZZ won't have a scenario of buying honey for $5 and...

Who says CZZ won't have a scenario of buying honey for $5 and selling it for $7, where they were once buying honey for $3 and selling it for $6? @madamswer

Let's say that demand for honey in Australia is not elastic (something that oscillate significantly in small difference in price). With population growing, demand should increase organic.

If Raw Honey price increase from $3 to $5, for me these can happen in 3 cases:

1. declining supply and constant demand
2. constant supply and growing demand

3.declining supply and growing demand (highest chance is combination of this two)

What need to happened that Capilano can't passed increase of Raw Honey to retail prices?
It's in people's culture to eat honey since Egyptian civilisation who new from healthy benefits of honey.
If you have cold if you want to boost your immune system , your grandparents would tell you eat lemons and honey. It is passed from generation to generation for centuries. That's why price and demand are not very elastic.

But let's go back to question:
Who says CZZ won't have a scenario of buying honey for $5 and selling it for $7, where they were once buying honey for $3 and selling it for $6?

For this to happened:
4. Declining supply and declining demand

Declining demand: It needs to come to bad recession that people can't afford $2 more for jar of honey every month or two. Even than people wouldn't give up on honey. IMO

If that times come, the last you will worry is your investment in Capilano.

Stop contrarian posts like this.
If you are not convinced to invest in Capilano until now, you will never be.



Law of demand and supply: