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Some products are stocked pile or even dumped when demand fall.
But in real life this happens within a very complex system which does not impact on a single farm as it does in FM21.
I do agree with you that this feature should be optional.
To work well we should get a choice of buyers for the same product, prices fluctuating between them. This would allow us to sell to the buyer with the best price which would then decrease with volume sold not affecting other buyers.
This system exist in "Farming simulator"
What is the purpose of the game if you can build 2 fish farms and one frozen food factory and print money forever in fast speed?
The game is over in 20 minutes if the price never changes.
They are talking about the new feature that makes anything you sell worth 40% less if you aren't constantly changing what your farm is growing. Which is completely unrealistic. No one farm can produce enough to tank the value of any crop that much and no farm is making dozens of products at a time.
I have a farm currently with 24 Large Cow Sheds .. all of them are producing "Bio Milk". I am making all 4 Bio Cow Milk Production Items I know of (White Cheese, Yellow cheese, Butter .. all in a milk processing plant, and cake in a bakery).
I am selling auto selling all excess Bio Milk and have been for at least one year,
Current Price of BioMilk is -8% and I am making money on it hand over fist.
The price of all the cheeses and cake is still 0%
This is a non issue on the Medium setting.
It is easier to get to 40% on the Extreme setting for 'Price of Products'. If you don't like the effect .. pick the appropriate 'price of products' setting.
BTW, I do agree with you that one farm would not have a 40% impact on prices. But it is a game with a difficulty setting where you can partially control the impact. On the extreme setting, it is, well, extreme.