Grocery shopping in Rosemead, California on April 21, 2022. (Photo: Frederic J. Brown/AFP via Getty Images)
Why Food Prices Are Rising Even More
Monopolists control nearly every part of the food production process, from selling feed to farmers, to packaging the meat and poultry for supermarkets.
Monopolies are slowly killing rural America--and driving up the price you pay for food.
Just four firms control 85% of all beef, 66% of all pork, and 54% of all poultry. This degree of monopolization is hurting farmers--and you.
Corporations are using their monopoly power to fix prices.
Monopolists control nearly every part of the food production process, from selling feed to farmers, to packaging the meat and poultry for supermarkets. Half of all chicken farmers report having just one or two processors to sell to.
Farmers are essentially forced to buy from and sell to monopolies at whatever price the corporation wants - often taking on crushing debt to do so. They are trapped in long-term binding contracts, with no way out but losing their livelihood altogether.
[Either I sign it or I ain't got no chickens. Without any chickens, I can't pay any bills.]
Meatpackers used to compete at cattle auctions for what ranchers produced - which helped ranchers get a reasonable return on their investment. Now, with so few buyers, ranchers have no choice but to sign contracts with meatpackers, and sell their cattle for a lower price than if the market were truly competitive.
In 1980, 62 cents of every dollar consumers spent on beef went to ranchers. Today, only 37 cents do. Most of the profits are going into the pockets of the monopolists.
And here's the kicker: Even though farmers are getting squeezed, the ag monopolists are also charging you higher prices. During the pandemic, beef prices rose nearly 16%--and the four biggest beef companies' profits rose more than 300 percent.
These corporations are using their monopoly power to fix prices. Just recently, beef giant JBS settled--without admitting guilt, of course--a beef price-fixing case for $52.5 million.
Monopolization is happening across the food sector. In corn, soybeans, dairy, pesticides, and farm machinery. The result is the same: lower pay to farmers, bigger profits for the monopolists, higher prices for you.
A better way to hold these monopolies accountable would be to break them up, and stop future mergers. But it won't be easy. They flex their political muscle through powerful lobbies like the North American Meat Institute, and maintain a revolving door with regulatory agencies like the US Department of Agriculture.
Well, I say, take them on. Rural America is hurting, farmers are getting squeezed, and consumers are being shafted. Notwithstanding the power of food monopolies, taking them on is wildly popular--especially in Rural America.
But don't just listen to me, listen to what farmers are saying about this:
"I'm here to tell the powers at be to enforce the antitrust laws for the world of agriculture."
"The laws are on the books. We have to strengthen those laws and do what Teddy Roosevelt did to break up the monopolies."
"Don't let these boys who come to Washington with pockets of money set there and bribe our congressman year after year after year."
"Who will stand up for me if you don't?"
For the good of us all, America needs to enforce antitrust laws, and break up Big Ag.
Watch:
Urgent. It's never been this bad.
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission from the outset was simple. To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It’s never been this bad out there. And it’s never been this hard to keep us going. At the very moment Common Dreams is most needed and doing some of its best and most important work, the threats we face are intensifying. Right now, with just four days to go in our Spring Campaign, we are not even halfway to our goal. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Can you make a gift right now to make sure Common Dreams not only survives but thrives? There is no backup plan or rainy day fund. There is only you. —Craig Brown, Co-founder |
Monopolies are slowly killing rural America--and driving up the price you pay for food.
Just four firms control 85% of all beef, 66% of all pork, and 54% of all poultry. This degree of monopolization is hurting farmers--and you.
Corporations are using their monopoly power to fix prices.
Monopolists control nearly every part of the food production process, from selling feed to farmers, to packaging the meat and poultry for supermarkets. Half of all chicken farmers report having just one or two processors to sell to.
Farmers are essentially forced to buy from and sell to monopolies at whatever price the corporation wants - often taking on crushing debt to do so. They are trapped in long-term binding contracts, with no way out but losing their livelihood altogether.
[Either I sign it or I ain't got no chickens. Without any chickens, I can't pay any bills.]
Meatpackers used to compete at cattle auctions for what ranchers produced - which helped ranchers get a reasonable return on their investment. Now, with so few buyers, ranchers have no choice but to sign contracts with meatpackers, and sell their cattle for a lower price than if the market were truly competitive.
In 1980, 62 cents of every dollar consumers spent on beef went to ranchers. Today, only 37 cents do. Most of the profits are going into the pockets of the monopolists.
And here's the kicker: Even though farmers are getting squeezed, the ag monopolists are also charging you higher prices. During the pandemic, beef prices rose nearly 16%--and the four biggest beef companies' profits rose more than 300 percent.
These corporations are using their monopoly power to fix prices. Just recently, beef giant JBS settled--without admitting guilt, of course--a beef price-fixing case for $52.5 million.
Monopolization is happening across the food sector. In corn, soybeans, dairy, pesticides, and farm machinery. The result is the same: lower pay to farmers, bigger profits for the monopolists, higher prices for you.
A better way to hold these monopolies accountable would be to break them up, and stop future mergers. But it won't be easy. They flex their political muscle through powerful lobbies like the North American Meat Institute, and maintain a revolving door with regulatory agencies like the US Department of Agriculture.
Well, I say, take them on. Rural America is hurting, farmers are getting squeezed, and consumers are being shafted. Notwithstanding the power of food monopolies, taking them on is wildly popular--especially in Rural America.
But don't just listen to me, listen to what farmers are saying about this:
"I'm here to tell the powers at be to enforce the antitrust laws for the world of agriculture."
"The laws are on the books. We have to strengthen those laws and do what Teddy Roosevelt did to break up the monopolies."
"Don't let these boys who come to Washington with pockets of money set there and bribe our congressman year after year after year."
"Who will stand up for me if you don't?"
For the good of us all, America needs to enforce antitrust laws, and break up Big Ag.
Watch:
Monopolies are slowly killing rural America--and driving up the price you pay for food.
Just four firms control 85% of all beef, 66% of all pork, and 54% of all poultry. This degree of monopolization is hurting farmers--and you.
Corporations are using their monopoly power to fix prices.
Monopolists control nearly every part of the food production process, from selling feed to farmers, to packaging the meat and poultry for supermarkets. Half of all chicken farmers report having just one or two processors to sell to.
Farmers are essentially forced to buy from and sell to monopolies at whatever price the corporation wants - often taking on crushing debt to do so. They are trapped in long-term binding contracts, with no way out but losing their livelihood altogether.
[Either I sign it or I ain't got no chickens. Without any chickens, I can't pay any bills.]
Meatpackers used to compete at cattle auctions for what ranchers produced - which helped ranchers get a reasonable return on their investment. Now, with so few buyers, ranchers have no choice but to sign contracts with meatpackers, and sell their cattle for a lower price than if the market were truly competitive.
In 1980, 62 cents of every dollar consumers spent on beef went to ranchers. Today, only 37 cents do. Most of the profits are going into the pockets of the monopolists.
And here's the kicker: Even though farmers are getting squeezed, the ag monopolists are also charging you higher prices. During the pandemic, beef prices rose nearly 16%--and the four biggest beef companies' profits rose more than 300 percent.
These corporations are using their monopoly power to fix prices. Just recently, beef giant JBS settled--without admitting guilt, of course--a beef price-fixing case for $52.5 million.
Monopolization is happening across the food sector. In corn, soybeans, dairy, pesticides, and farm machinery. The result is the same: lower pay to farmers, bigger profits for the monopolists, higher prices for you.
A better way to hold these monopolies accountable would be to break them up, and stop future mergers. But it won't be easy. They flex their political muscle through powerful lobbies like the North American Meat Institute, and maintain a revolving door with regulatory agencies like the US Department of Agriculture.
Well, I say, take them on. Rural America is hurting, farmers are getting squeezed, and consumers are being shafted. Notwithstanding the power of food monopolies, taking them on is wildly popular--especially in Rural America.
But don't just listen to me, listen to what farmers are saying about this:
"I'm here to tell the powers at be to enforce the antitrust laws for the world of agriculture."
"The laws are on the books. We have to strengthen those laws and do what Teddy Roosevelt did to break up the monopolies."
"Don't let these boys who come to Washington with pockets of money set there and bribe our congressman year after year after year."
"Who will stand up for me if you don't?"
For the good of us all, America needs to enforce antitrust laws, and break up Big Ag.
Watch: