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That's not a better excuse than what they had before. The question is why didn't competition undercut them to keep prices low as it had before. Food company exc

That's not a better excuse than what they had before. The question is why didn't competition undercut them to keep prices low as it had before. Food company excuses don't matter, people will continue to buy the product they perceive as having the best value.

ceejayoz 3y ago
> The question is why didn't competition undercut them to keep prices low as it had before. This question is answered by the title of the article.
- HDThoreaun 3y ago
  Not really. The article doesn't have any evidence of collusion at all. 4 competitors should be more than enough to prevent abuses of market power.
  - ceejayoz 3y ago
    There's certainly evidence of collusion in the meat industry even pre-COVID. https://www.atg.wa.gov/news/news-releases/ag-ferguson-s-price-fixing-lawsuit-nets-105-million-washingtonians-tyson-foods https://www.atg.wa.gov/news/news-releases/ag-ferguson-s-pric... > The Attorney General’s Office asserts Tyson Foods and 18 other chicken producers drove up the price of chicken since at least 2008, causing consumers to overpay by millions of dollars. The lawsuit asserts a widespread illegal conspiracy to inflate and manipulate prices, rig contract bids, illegally exchange information and coordinate industry supply reductions to maximize profits. > The Attorney General’s Office investigation found a coordinated, industry-wide effort to cut production through the exchange of competitively sensitive information, signals during investor calls and direct coordination between players in the industry.
    - HDThoreaun 3y ago
      $10.5 million over 14 years? That's what, half a cent per pound? probably less
      - ceejayoz 3y ago
        That's the settlement amount, from one state and for one type of chicken product, and merely one example of how the providers collude. Until people start going to jail, these sorts of fines/settlements are just part of the cost of doing business. The profits from the scheme tend to outweigh the punishments, especially factoring in the probable times they don't get caught doing it.
  - deleted 3y ago
    [deleted]
- AnimalMuppet 3y ago
  Didn't that cartel exist in 2020? So, once again, why now?
  - ceejayoz 3y ago
    The first line of the article is "Since 2020, Americans have experienced rising food prices". The pandemic's effects largely started in March 2020. "Now" is scoped to "that last couple of years", not "last week".
    - AnimalMuppet 3y ago
      Well, OK, didn't that cartel exist in 2018? 2010? 2000? Why now (for values of "now" that include 2020)? The cartel explanation, by itself, still doesn't fit the timing.
      - ceejayoz 3y ago
        Again, the cartel(s) existed (and they've long been accused of price fixing of various kinds; BigAg price fixing fines are not new; https://en.wikipedia.org/wiki/Lysine_price-fixing_conspiracy https://en.wikipedia.org/wiki/Lysine_price-fixing_conspiracy as an example). The handy "it's the pandemic's fault prices are going up everywhere" excuse to get away with big price hikes was new.
        HDThoreaun 3y ago
        They didn't need excuses to raise prices, this explanation still doesn't explain why they waited. Cartel's don't care what their consumers think since they've cornered the market on an inelastic product.
        ceejayoz 3y ago
        > Cartel's don't care what their consumers think since they've cornered the market on an inelastic product. They do care about attracting the ire of regulators, which can be triggered by consumers getting fed up with price increases.

ceejayoz 3y ago

> The question is why didn't competition undercut them to keep prices low as it had before. This question is answered by the title of the article.

HDThoreaun 3y ago
Not really. The article doesn't have any evidence of collusion at all. 4 competitors should be more than enough to prevent abuses of market power.
- ceejayoz 3y ago
  There's certainly evidence of collusion in the meat industry even pre-COVID. https://www.atg.wa.gov/news/news-releases/ag-ferguson-s-price-fixing-lawsuit-nets-105-million-washingtonians-tyson-foods https://www.atg.wa.gov/news/news-releases/ag-ferguson-s-pric... > The Attorney General’s Office asserts Tyson Foods and 18 other chicken producers drove up the price of chicken since at least 2008, causing consumers to overpay by millions of dollars. The lawsuit asserts a widespread illegal conspiracy to inflate and manipulate prices, rig contract bids, illegally exchange information and coordinate industry supply reductions to maximize profits. > The Attorney General’s Office investigation found a coordinated, industry-wide effort to cut production through the exchange of competitively sensitive information, signals during investor calls and direct coordination between players in the industry.
  - HDThoreaun 3y ago
    $10.5 million over 14 years? That's what, half a cent per pound? probably less
    - ceejayoz 3y ago
      That's the settlement amount, from one state and for one type of chicken product, and merely one example of how the providers collude. Until people start going to jail, these sorts of fines/settlements are just part of the cost of doing business. The profits from the scheme tend to outweigh the punishments, especially factoring in the probable times they don't get caught doing it.
- deleted 3y ago
  [deleted]
AnimalMuppet 3y ago
Didn't that cartel exist in 2020? So, once again, why now?
- ceejayoz 3y ago
  The first line of the article is "Since 2020, Americans have experienced rising food prices". The pandemic's effects largely started in March 2020. "Now" is scoped to "that last couple of years", not "last week".
  - AnimalMuppet 3y ago
    Well, OK, didn't that cartel exist in 2018? 2010? 2000? Why now (for values of "now" that include 2020)? The cartel explanation, by itself, still doesn't fit the timing.
    - ceejayoz 3y ago
      Again, the cartel(s) existed (and they've long been accused of price fixing of various kinds; BigAg price fixing fines are not new; https://en.wikipedia.org/wiki/Lysine_price-fixing_conspiracy https://en.wikipedia.org/wiki/Lysine_price-fixing_conspiracy as an example). The handy "it's the pandemic's fault prices are going up everywhere" excuse to get away with big price hikes was new.
      - HDThoreaun 3y ago
        They didn't need excuses to raise prices, this explanation still doesn't explain why they waited. Cartel's don't care what their consumers think since they've cornered the market on an inelastic product.
        ceejayoz 3y ago
        > Cartel's don't care what their consumers think since they've cornered the market on an inelastic product. They do care about attracting the ire of regulators, which can be triggered by consumers getting fed up with price increases.