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In part because of consolidation in the industries relating to food. https://www.nytimes.com/2021/12/27/business/beef-prices-cattle-ranchers.html https://www.n
by JaimeThompson 5y ago
In part because of consolidation in the industries relating to food.
https://www.nytimes.com/2021/12/27/business/beef-prices-cattle-ranchers.html https://www.nytimes.com/2021/12/27/business/beef-prices-catt...
In this example the price paid to ranchers for beef hasn't risen all that much but the end user price has increased drastically. That the meat processing industry has 4? companies controlling 80+% doesn't help.
- 01100011 5y agoWhy didn't the lack of competition result in higher prices before COVID? I don't know, but it seems like farmers negotiate contracts in advance, so if futures prices are driven up by speculators using easy money then there will be a period of time where farmers are selling for less than they otherwise could because they negotiated futures contracts. Isn't the whole point of the futures market to provide farmers with stable prices, not optimal prices?