What's the Beef?
On December 10th the White House issued a statement Recent Data Show Dominant Meat Processing Companies Are Taking Advantage of Market Power to Raise Prices and Grow Profit Margins. “It raises a concern about pandemic profiteering, about companies that are driving price increases in a way that hurts consumers who are going to the grocery store,” White House National Economic Director Brian Deese said at a news briefing. Needless to say, the Beef Industry, notably Tyson Foods, were not happy with the White House statement. This piqued my interest as I had noticed substantial price increases in prime cuts of beef and veal during my regular visits to the butcher. Were prices rapidly rising due to inflation driven increased costs of sales? Was increased demand driving prices, As we learned in Econ 101? Or were meat processing companies following the old adage “Never let a good crisis go to waste.” I decided to look at the big four meat firms, the middlemen between consumers and farmers