Ground beef reached a record $6.89 per pound, rising 80% since 2019, with no relief across the supply chain. Drought has reduced cattle herds to the lowest levels in decades, tightening supply. Meatpackers face labor shortages and plant closures, limiting processing capacity. Restaurants have continued raising prices to cover higher costs. Market structure is also a concern, with four companies—Tyson, JBS, Cargill, and National Beef—controlling about 80% of the American beef market. The Justice Department is investigating, and major retailers and restaurants including McDonald’s and Target are suing over alleged price-fixing. The impact of consolidation on prices and whether breaking up firms would lower costs remains in question.
"Ground beef just hit a record $6.89 a pound, up 80% since 2019 - and nobody along the supply chain sees relief coming. Ranchers like Eric Gropper point to years of drought that have shrunk cattle herds to their lowest level in decades. Meanwhile, meatpackers have been hammered by labor shortages and plant closures. And restaurants have had no choice but to keep raising prices."
"Since the late 1970s, just four companies - Tyson, JBS, Cargill, and National Beef - have come to control roughly 80% of the American beef market. The Justice Department is now investigating, and McDonald's and Target are among those suing over alleged price-fixing."
"So how much has consolidation driven up prices? And would breaking up these companies actually lead to lower beef prices?"
Read at Business Insider
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