@revelette3,
Of course they don't. Supply drives price just like demand. This surplus is the result of manipulating supply.
Its the same thing as $0 per barrel oil. Once the storage if full and demand is not growing - oil becomes worth less.
Its the the DeBeers' model. Less than 1/4 of diamonds make it to market. But storing diamonds is an easier process than storing billions of pounds of meat.
I get some of it: its a balance between profit and producing something for more than it costs. This also shows up in drug prices, too. Economy of scale explains why you can buy the same prescription in Mexico cheaper than in the US: producers charge what the market will bear. Selling as many as you can even at cost or even a little below lowers the cost per unit and increase profit in markets where you can charge premium prices.