Big meat gang is getting awfully smelly

[chuckChuck]

Fair enough.

But negative consumer concerns about labour and food safety issues can have an impact on both sides of the border whether we like it or not. And perhaps there is an opportunity for Canadian producers to expand their share of domestic consumption?

Perhaps the story is a cautionary example of what happens when you let powerful processors have oversized influence over the industry and producers.

Since our markets are very integrated we shouldn’t ignore What happens in the US. I know farmers there are very concerned about their loss of control where packers own so much of the supply. It’s not a free and open market.

[chuckChuck]

There is also a story about Canadian packing plants that has not been fully told. Do we really know what’s going on in Brooks, High River, Brandon and across the country? Surely producers and consumers should be informed if there are issues. The owners are some of the same owners who mistreat workers in the US. http://globalnews.ca/news/7054288/meat-processing-changes-coronavirus/ http://globalnews.ca/news/7054288/meat-processing-changes-coronavirus/

[Blaithin]

It’s hardly news there are issues within Canadian packing.

The small butcher has almost disappeared and all that’s left are big names. Even smaller scale, large operations like Harmony Beef, are few and far between and often struggling.

Much of that is to do with a multitude of factors, including regulations.

That issue, however, was never mentioned in your article or any of your proceeding posts. It is a different issue entirely from labour concerns.

[blackpowder]

Blaithin has a lot of patience.
Actually cool if ag had that much power in Ottawa.

[Blaithin]

Not really patient. Just enjoy a good discussion.

I see what Chuck is talking about. I’m just not the kind of person who cares about that sort of thing 😂

[farming101]

It's a black swan event. There are no winners.

Farmers who couldn't sell their production suffered as much as anyone.

To say nothing of the millions of pounds of perfectly good food that got thrown on the compost pile...

[chuckChuck]

https://agnetwest.com/meat-industry-undergoing-significant-antitrust-scrutiny/ https://agnetwest.com/meat-industry-undergoing-significant-antitrust-scrutiny/

Meat Industry Undergoing Significant Antitrust Scrutiny

June 24, 2020 Dairy & Livestock, Industry

The meat industry has been under increased scrutiny in recent weeks as federal officials investigate multiple antitrust concerns. The U.S. Department of Justice (DOJ) is looking into several of America’s largest beef, pork, and poultry companies regarding issues of potential price-fixing and possible market manipulation. The close examination of the industry comes after breakdowns in the supply chain exacerbated previous concerns related to consolidation in the meat and poultry sectors.
meat industry

The poultry industry is being closely analyzed, with executives from Pilgrim’s Pride Corp. and Claxton Poultry Farms recently being indicted for allegations of price-fixing and bid-rigging between 2012 and 2017. Another major poultry producer, Tyson Foods, has been cooperating with the DOJ investigation as part of the company’s application for leniency under the DOJ’s Corporate Leniency Program. The probe into the poultry sector has been underway for more than a year after several accusations from retailers and consumers have charged processors with artificially inflating prices since 2008. Tyson Foods is also linked to a separate investigation into the beef market.

DOJ subpoenas have been issued to JBS SA, Cargill Inc., and National Beef Inc., and Tyson Foods after several complaints allege that the companies have been participating in anticompetitive activity. The concerns were highlighted by supply chain issues that became evident amidst the COVID-19 pandemic. Several lawmakers, state attorneys general, and President Donald Trump all pointed to a need for more oversight in the beef industry, calling for an investigation to determine if the companies were involved in any malfeasance.

The U.S. Department of Agriculture has also been conducting its own investigation into the possibility of market manipulation. The increasing level of market concentration in the meat industry has been a source of concern for several years now, as creating conditions that lend themselves to anticompetitive practices. Industry members point to a lack of enforcement of antitrust policies as having allowed a small group of companies to have an unfair influence on the overall markets.
About the Author
Brian German


It seems that all is not well with Big Meat in the USA. Anticompetitive behavior and market manipulation? If I was in the red meat industry I would be more than concerned, I would really like to know whats going on and not pretend that problems in our biggest export market aren't an issue to be concerned about. Especially since some of the same US players operate here in Canada.

[Blaithin]

And what should we do about it.

Lobby?

[chuckChuck]

Don't ignore it. Find out what is going on in Canada. And if there are issues start raising a little hell.

I can't imagine that anyone who believes in free markets would be happy the meat industry is so concentrated in the hands of a few players who have been accused of anti competitive behavior in the US and may be doing the same thing in Canada! Do you want to stand up for producers or get rolled over?

[Blaithin]

Nobody in the industry is particularly happy at where we currently sit with packers. Especially beef. To think nobody is doing anything and we’re all just sitting back is kind of silly.

Just a few months ago the Alberta provincial gov relaxed some regulations around butchering at home for resale. It wasn’t world altering by any means but it was a recognition of an issue and a step in the right direction. As long as it doesn’t just turn out to be a placating measure. Time will tell.

Realistically to get more players on the scene to take on Cargill and JBS is a slim chance. The investment required for that is enormous. Easier to export live to already established facilities. Any new company would also need large investment capital to build on that scale. And those are the facilities that can handle the numbers from the feedlots and the barns. Not a hundred little, small town guys.

Best investment is mid sized packers like Harmony Beef that can supply a more local source. Let the big guys do the exports and big feedlot contacts.