The cartel that controls the US meat industry • Hacker News Board

Re: The cartel that controls the US meat industry

#61

Post by nerdponx » Thu, Aug 03, 2023, 5:00 PM UTC

gruez wrote: post #57

ceejayoz wrote: post #15

Earlier quoted context omitted.

> But ... why now? Because "oh, it's the pandemic" gave them cover for the increases.

>Because "oh, it's the pandemic" gave them cover for the increases. It might work, but as far as I can tell it doesn't stick. Egg producers had the "it's bird flu excuse" about a decade ago[1]. Profits (as %) went up, but eventually fell back down a few years later[2]. [1] https://en.wikipedia.org/wiki/Avian_influenza#United_States_... [2] https://www.macrotrends.net/stocks/charts/CALM/cal-maine-foo...

Right, so total profit over the time period is greater than if they didn't raise prices. It doesn't matter if it sticks forever.

See also: gas prices after hurricane Katrina.

Re: The cartel that controls the US meat industry

#62

Post by Sparkyte » Thu, Aug 03, 2023, 5:01 PM UTC

r3trohack3r wrote: post #14

A reminder that Tyson is abusing the legal system to force people in the American south into working in their chicken plants for free: https://revealnews.org/article/they-thought-they-were-going-... I don't know every brand that uses Tyson products, but when I discover something is coming from a Tyson factory I stop purchasing it.

If it was free how are the operating costs covered?

Re: The cartel that controls the US meat industry

#63

Post by algoatecorn » Thu, Aug 03, 2023, 5:01 PM UTC

Food system is a technical term and is distinctly different than the meat industry, which it encompasses. These companies certainly do not "control the food system"

Re: The cartel that controls the US meat industry

#64

Post by hnboredhn » Thu, Aug 03, 2023, 5:01 PM UTC

Buttons840 wrote: post #43

The word "monopoly" implies one dominant company ("mono-" meaning one), but industries with 2 or 3 companies are still unhealthy for a few reasons. First, it's pretty easy for 2 or 3 companies to price fix, which is against anti-trust laws. Second, a healthy market requires that it be easy for new companies to enter the market and compete, and if there's only a few dominant companies, then clearly new competitors are…

I am not too in the weeds on this particular issue, but it seems not that crazy to me that "the biggest four companies" produce 55% of the US's chickens. Presumably that means there is much more than four who register in at above a couple percent nationally and possibly even at a local level different players. Its also for one market. While I eat a lot of chicken, I could substitute it for other foods or meats.

To be clear I think these companies would manipulate prices if they knew how and could get away with it, but having trouble seeing how "four companies control under 60 percent of one food's market" is that alarming. That seems like more competition than at any point in human history.

Re: The cartel that controls the US meat industry

#65

Post by koolba » Thu, Aug 03, 2023, 5:01 PM UTC

r3trohack3r wrote: post #14

A reminder that Tyson is abusing the legal system to force people in the American south into working in their chicken plants for free: https://revealnews.org/article/they-thought-they-were-going-... I don't know every brand that uses Tyson products, but when I discover something is coming from a Tyson factory I stop purchasing it.

The taste is enough reason to never eat a Tyson chicken.

Re: The cartel that controls the US meat industry

#66

Post by mandmandam » Thu, Aug 03, 2023, 5:02 PM UTC

Buttons840 wrote: post #43

The word "monopoly" implies one dominant company ("mono-" meaning one), but industries with 2 or 3 companies are still unhealthy for a few reasons. First, it's pretty easy for 2 or 3 companies to price fix, which is against anti-trust laws. Second, a healthy market requires that it be easy for new companies to enter the market and compete, and if there's only a few dominant companies, then clearly new competitors are…

Our two political parties are a duopoly (at best).

They have used that position to build a huge moat against any possible third party gains for many decades.

So, enforcing anti-trust legislation would actually be kind of hypocritical of them, sad-lol.

Re: The cartel that controls the US meat industry

#67

Post by mandmandam » Thu, Aug 03, 2023, 5:03 PM UTC

hnboredhn wrote: post #64

Buttons840 wrote: post #43

The word "monopoly" implies one dominant company ("mono-" meaning one), but industries with 2 or 3 companies are still unhealthy for a few reasons. First, it's pretty easy for 2 or 3 companies to price fix, which is against anti-trust laws. Second, a healthy market requires that it be easy for new companies to enter the market and compete, and if there's only a few dominant companies, then clearly new competitors are…

I am not too in the weeds on this particular issue, but it seems not that crazy to me that "the biggest four companies" produce 55% of the US's chickens. Presumably that means there is much more than four who register in at above a couple percent nationally and possibly even at a local level different players. Its also for one market. While I eat a lot of chicken, I could substitute it for other foods or meats. To be…

> That seems like more competition than at any point in human history.

I think your intuition is very wrong on this one. And since there are clear signs of price fixing which you haven't addressed, it's pretty irrelevant.

Re: The cartel that controls the US meat industry

#68

Post by coding123 » Thu, Aug 03, 2023, 5:03 PM UTC

Re: The cartel that controls the US meat industry

#69

Post by colpabar » Thu, Aug 03, 2023, 5:04 PM UTC

darth_avocado wrote: post #44

ceejayoz wrote: post #15

Earlier quoted context omitted.

> But ... why now? Because "oh, it's the pandemic" gave them cover for the increases.

This is correct. Food companies cannot hike prices just because, especially when they are monopolies. If suddenly eggs cost $20/dozen, customers will ask why and if there are no good explanations, there will be a lot of noise. And politicians and regulators who are otherwise not willing to act on monopolies, do not like noise because it threatens their jobs. They will act, and that will not be great for the food comp…

> they will act

They will say “what inflation?” and then tell us that it’s actually a good thing that eggs cost that much.

Re: The cartel that controls the US meat industry

#70

Post by phonon » Thu, Aug 03, 2023, 5:04 PM UTC

r3trohack3r wrote: post #14

A reminder that Tyson is abusing the legal system to force people in the American south into working in their chicken plants for free: https://revealnews.org/article/they-thought-they-were-going-... I don't know every brand that uses Tyson products, but when I discover something is coming from a Tyson factory I stop purchasing it.

This is horrific.