Dunne and others have stressed the need for rationalization in the processing industry. What is “rationalization” and how is the RMS system related to that?
There are two types of rationalization: controlled and uncontrolled. Rationalization is the elimination of overcapacity and creation of stability through a good balance between production capacity and raw material availability, so that harvesters, processors and plant workers all earn stable and reasonable incomes. The raw material share system brings about stability in the short term. If the balance is not reasonable in future, transfers of shares would provide a means to improve the situation for participants. Whereas free market rationalization is immediate and uncontrolled, RMS will provide for a planned approach if warranted.
