Showing posts with label Big Beef. Show all posts
Showing posts with label Big Beef. Show all posts

Sunday, June 13, 2021

Big Beef will finish off small ranchers, if changes aren't made

After reading this, I don't know what might happen.
In the last three decades, this has become more acute. Economic consolidation across the beef industry has made the once comfortable livelihood of small- and medium-sized ranchers nearly untenable. In Nebraska, Wright described watching young farmer after young farmer squeezed out of the cattle industry and forced to drive semitrucks or work at fertilizer plants to pay off debts. He says nearby farmers were pushed to abandon their cattle and farms after being priced out by the same culprit: Big Beef.

The stranglehold on the beef industry can be traced to the processing and packing companies at the center of the market. Ranchers and legislators say that the four major meatpacking companies—the “Big Four,” as ranchers call them—are to blame. Tyson, JBS, Cargill, and National Beef purchase and process 85 percent of beef in the United States, giving them immense economic control. They operate at the nefarious nexus of being both regional monopsonies and monopolies, having a significant sway on both the price of cattle bought off the ranch and the price of beef bought at the supermarket. These four middlemen firms are both the buyers and sellers. - The American Prospect