Beef prices have become simply insane. The value I get from beef can no longer justify the expense, so I've simply stopped buying it at all. I've largely replaced it with pork. Pork used to be the most popular meat in the US. I wonder if it will be again.
US beef prices have soared but farmers aren't making more money
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Re: US beef prices have soared but farmers aren't making more money
#12There should be laws ensuring that every market there should be at least 5-6 players and is free or is declared natural monopoly/monopsony and regulated.
The in between you have all the bad from monopolies in the forms of cartels.
Re: US beef prices have soared but farmers aren't making more money
#13[dead]
Re: US beef prices have soared but farmers aren't making more money
#14yeah, it's called inflation, it really sucks for everyone except the people who receive the new money early (mainly the banking system, but also people w/liquid assets + finance adjacent industries like housing) we should avoid it oh well i guess a bunch of people will go bankrupt and then get bought up at distressed prices by people with access to new money early wait a second...
Its meat processors having a monopoly.
monopsony
Re: US beef prices have soared but farmers aren't making more money
#15Earlier quoted context omitted.
Many people see this as a problem, but I see it as a normal function of market economies. Disruptions, changes in government policy, changes in consumer behavior, and more will over the long term just work themselves out. Of course some policies or seemingly "voluntary" policies may cause undue price increases, but even those work themselves out. At the end of the day as more and more people want to consume the same…
A lot of these markets aren't really functioning when there are many middlemen that have an 2-4 company oligopoly that choke out any actual competition. Many markets don't really have 'competition'
No, markets still function anyway over the long term (monopolies go bankrupt and are disrupted all the time) and if you are worried about oligopoly you want to ensure that communism and state ownership of the means of production is stamped out to prevent monopolies.
Re: US beef prices have soared but farmers aren't making more money
#16> A new pick-up truck that once cost $40,000 now runs to $100,000. A wooden fence post has gone from about $6 to as much as $19. A quarter-mile roll of barbed wire has doubled, from $60 to $130. Everything he uses day to day, he says, has jumped in price since the Covid pandemic.
I know why pick-ups have gone up in cost (though I don't think it's quite to 2.5x levels like suggested here since the pandemic), but wooden posts and barbed wire, it's less clear why those are so much more expensive now.
Re: US beef prices have soared but farmers aren't making more money
#17Beef prices have become simply insane. The value I get from beef can no longer justify the expense, so I've simply stopped buying it at all. I've largely replaced it with pork. Pork used to be the most popular meat in the US. I wonder if it will be again.
The neat part is that there is no inflation here: you just substituted a worse product for a better one and our friends in the govt call it good.
Re: US beef prices have soared but farmers aren't making more money
#18Save you a click: "The rancher is selling calves for record sums, but is not better off because he has higher costs. The feedlot company is selling for all-time high prices, but it also has to pay them in the first place. The packers are losing money because there is a limit to what they can charge. Restaurants and supermarkets also can only increase prices by so much."
Many people see this as a problem, but I see it as a normal function of market economies. Disruptions, changes in government policy, changes in consumer behavior, and more will over the long term just work themselves out. Of course some policies or seemingly "voluntary" policies may cause undue price increases, but even those work themselves out. At the end of the day as more and more people want to consume the same…
Things might not work itself out in desirable ways. I imagine what will happen is that portions will shrink, and become adulterated. For example, a restaurant ostensibly using ground beef might partially substitute something cheaper... Food fraud is rampant in developing countries. One example:
https://www.foodnavigator.com/Article/2025/07/28/food-fraud-...
https://scijournals.onlinelibrary.wiley.com/doi/10.1002/jsfa...
Re: US beef prices have soared but farmers aren't making more money
#19Save you a click: "The rancher is selling calves for record sums, but is not better off because he has higher costs. The feedlot company is selling for all-time high prices, but it also has to pay them in the first place. The packers are losing money because there is a limit to what they can charge. Restaurants and supermarkets also can only increase prices by so much."
Many people see this as a problem, but I see it as a normal function of market economies. Disruptions, changes in government policy, changes in consumer behavior, and more will over the long term just work themselves out. Of course some policies or seemingly "voluntary" policies may cause undue price increases, but even those work themselves out. At the end of the day as more and more people want to consume the same…
> Many people see this as a problem, but I see it as a normal function of market economies.
Both things can be true.
Re: US beef prices have soared but farmers aren't making more money
#20you can increase profits through volume or margin.
right now we are in a whole economy experiment to see how long you can increase margin through price increases and shrinkflation.