Robert ReichJan 11, 2023

4 corporations dominate the U.S. meatpacking industry.

In 1977, they owned just 25% of the market.

Today, they control 85%.

Meanwhile, cattle ranchers used to receive 62 cents for every consumer dollar spent on beef.

Now, they receive just 37 cents.

Show threadZakuJan 11, 2023
@rbreich well, if the price increases by 16% and, as a consequence, the profit increases by 300%, doesn’t that mean the original profit margin is quite thin?
Show threadJason Lee
@zaku @rbreich Not necessarily. The price for consumers can go up with market consolidation at the same time the costs of production are going down due to vertical integration, economies of scale, etc. Profit can increase at a higher rate than price.
Jan 11, 2023 at 11:52pmMastodon for iOS