Corruption in the Beef Industry: Rising Prices & Limited Supply
It has circulated for years that beef companies are being controlled by bigger players in the meatpacking segment of the industry. The once alleged rotten side of the production is finally being brought to public scrutiny.
According to The New York Times, “In the U.S. cattle industry, that chain is dominated by just four meatpacking conglomerates, and their profits are raising tensions. While diners at restaurants and shoppers in grocery stores experience sticker shock from sharply higher prices for ground beef and prime steaks, ranchers say they are barely breaking even or, in some cases, losing money. They point a finger at the Big Four companies, which account for more than 80 percent of the processed beef sold in the United States: Cargill, JBS, Tyson Foods, and National Beef.”
The ranchers across America consistently find themselves dealing with the ever-changing costs associated with running a farm or ranch, and they continuously seem to come up at break-even or just short with the closing of each fiscal year. The math smells fishy, and I think what the beef raisers are starting to realize is that there might just be some dishonest players in the mix.
Michael Buhagiar, chef and owner in San Francisco, said he’s now paying “30 to 40 percent more for steak than he did a year ago.” Similarly, Brad Kooima in Iowa says, “These days, he’s losing $84 a head.”
Mr. Kooima explains “The frustration for producers like myself is that you’re looking at a situation where demand for beef, domestically and globally, has never been this good, [yet] we’re not making any money.”
In recent years, numerous lawsuits have been filed by grocery chains and ranchers alleging that the elite meatpacking companies have been increasing the price of beef while limiting the supply. This has created space for corruption and as these meatpacking conglomerates decrease their competition and costs continue to rise, I hope we get some honest answers as to what has really been taking place in the beef industry over the past several years.
