Beef prices are soaring, but ranchers are going broke. Behind this apparent manifestation of the Great Supply Chain Disruption, a story of monopoly power. Our story from Montana and Missouri with amazing photos by @erinschaff nytimes.com/2021/12/27/bus…
Like so many American stories, this one goes back to Reagan, and the decision to ditch antitrust enforcement as an impediment to efficiency. Four decades later, four largest meatpackers control 85 percent of the beef market.
Ranchers used to capture more than half of every dollar Americans spent on beef; last year they got only 37 cents. The difference flows largely to packers like JBS, a Brazilian conglomerate that used ill gotten state credit to go on international expansion spree.
Thanks to @matthewstoller for excellent work on this subject while making the important point that, behind many surface level explanations in markets, is monopoly power.
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