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Pete Lincoln's avatar

The "Big Four" processors—JBS, Tyson, Cargill, and National Beef—control 85% of U.S. beef slaughter capacity, allowing them to suppress farmer payments while inflating retail prices, per USDA reports and antitrust investigations. They buy up most of our cattle and other livestock from ranchers, then take them to their feed lots. They also buy foreign meat, which is shipped and packaged here on US soil, and allows them to put US meat on the package

Trump's 50% tariff on Brazilian beef imports allows the packers to increase the price of beef they sell from US ranchers and get US consumers to pay a portion of the Brazil tariffs on tariff free US beef . They can do this because they don’t have to label the meat as coming from Brazil or US.

Since margins for US ranchers are low they have little incentive to increase the size of herds which has been diminished by drought.

The solution is simple. Break up the monopolies. Tariff free Argentine beef will reduce the meat packers costs as the move from Brazil to Argentine beef but as they are a cartel (price makers) prices wont drop much. However, price increases (inflation) will fall so Trump will take credit for dropping inflation (yet prices remain high).

Relaxing USDA regulations wont help much because retail market prices are set by the price the meat packers who control 85% of the market sell at. Maybe a few ranchers make better margins but that wont help the retail price much unless the big 4 are broken up.

Dave Scrimshaw's avatar

Custom meat processing - sounds like lab-grown meat to me.

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