’—Lancaster Farming, Saturday, May 16,1981
>2-
Beefing about monopoly
;onsumers are unhappy about
;f prices, farmers are unhappy
>ut beef prices, and things are
»ly to get a lot worse.
)espite the fact that cattle
iducers have been losing money
;ry month for the last couple of
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Farm
Talk
Jerry Webb
years, consumers still think beef
prices are too high. Their loyalty to
the great American favorite is
being severely tested by pork, and
especially by chicken and turkey.
Meanwhile, those low prices m
the feedlots are causing cattle -
TERRE HILL MORGANTOWN
445-6741 256-5101
MEMBER OF FOIC
INTEREST
producers to cut back on
production. And that means fewer
animals going to market in the
future and even higher beef prices.
But if consumers and beet
pioduceis die unhappy now, wait
until they see what liea ahead.
There are strong indications that a
meat monopoly, particularly as it
affects beef, is in the making and it
could be so powerful as to call the
tune for both cattle producers and
consumers.
Government agencies and
Congressional committees have
been taking a hard look at the meat
business, especially the beef
packers, to see if there is any
unfair competition. While they
haven’t developed a case that will
stand up in court, there are strong
indications that something mighty
close to a monopoly already exists
in the beef business.
Consider this: The big four meat
packers slaughter about two-thirds
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AGRI EQUIPMENT INC. DEPENDABLE MOTORS ROVENDALESUPPLY
2754 Creek Hill Rd Honey Brook, PA RD 2, Watsontown, PA 17777
Leola, PA 17540 215-273-3131 717-538-5521
717-656-4151 215-273-3737
I. G. SALES
Rt 113. Box 200
Silverdale, PA
215 257-5135
G. HIRAM
BUCHMAN, INC.
Rte 519-N ottfcte 46
P O Box 185
Belvidere, NJ 07823
201-475-2185
of all the steers and heifers gomg
to market in the 23 top beef states.
Their share of those markets has
increased from a little more than
half only.a dozen years ago. And
the top two, lowa Beef Processors
and MBPXL (a Cargill sub
sidiary), slaughter a third of all
U.S. produced beef and that’s up
from only 15 percent five years
ago.
One observer is predicting that
these two firms will be handling 60
percent of the boxed beef market
by the end of 1981.
It’s obvious that a third of the
market doesn’t consitute a
monopoly on a national scale. But
on a regional basis, the situation is
much worse.
In some livestock markets, one
of these “big four” has the only
game in town. In fact, the two
biggies—lowa 'Beef Processors
and MBPXL are expanding by
leaps and bounds while third place
hfmipv c i add SOLLENBERGER SILOS
(IClflfT*. URrr RFD2,Chambersburg,PA
RDI, Cams, Gap. PA 17527 717-264-9588
717-442-8134
HARRY L. TROOP
Rt 1 Cochranville, PA 19330
GEORGE A. COLEMAN
Rt #2, Box 216
Elmer. NJ
609-358-8528
215-593-6731
ERB& HENRY
EQUIP., INC.
22-26 Henry Avenue
New Berlmville, PA
215-367-2169
BENNETT MACHINE CO.
1601 S Dupont Blvd.
Milford, DE
302-422-4837
Swift and fourth place Morrell are
having problems. In the Pacific
northwest, those top two com
panies handle 65 percent of the
beef going to market. Five years
ago, they weren’t eveam business
in that area.
Here’s more proof of the con
centration going on m the beef
industry:
s Fifteen of the top 25 feedlots m
the country are associated with
meat packing firms. They con
stitute one-fifth of U.S. feedlot
capacity.
Government figures show
124,000 feedlots, with only 420 of
them marketing over half of the
U.S.’s total fed cattle supply.
MBPXL is owned by Cargill,
Inc. and Cargill is the world’s
largest gram company. (Also the
U.S.’s largest cattle feeder and the
sixth largest commercial feed
manufacturer. In addition, Cargill
(Turn to Page D 3)
I. A. SWOPE
Box 121, RDI
Myerstown, PA
717-933-4758
DETWILERSILO
REPAIR
Rt 2, Newville, PA
717-776-7533