Herd sizes are the smallest in 75 years coupled with very high prices.
This is due to meat processing being a bottleneck. The meat processing consolidated because high startup costs, razor-thin profit margins, strict government rules, and make it difficult for small or new facilities to survive against giant corporations.
I purchase 1/4 & 1/2 cows, I pay $15.00/lb, almost half of which is ground beef. The Rancher I purchase the cow from make ~$4.00/lb. The issue is we need a USDA butcher ...
Concentration in U.S. Meatpacking Industry and How It Affects Competition and Cattle Prices
However, in recent years there is evidence of reduced competition in meatpacking, with lower prices for cattle. This evidence is reflected in sharply increased spreads between cattle prices and wholesale beef prices, the disappearance of excess capacity in packing plants, and recent entry into the industry by new packers. Entry and capacity expansion could encourage renewed competition in the industry.
www.ers.usda.gov
Same problem different industry...
I seem to recall the same issue with cotton in India. Over production of cotton due to increase yield due to GMO'd seeds, the processing plants couldn't process all that was grown, prices dropped so low, to where the farmers couldn't purchase seeds for the next season. Many were put out of business, at least until more processing plants could be built.
Is this problem any different than having to pay $200 for a 15min consultation with a DR? No ... this is that the government regulates so much that people don't invest in the industry proper. Ergo we get like popup restaurants that don't follow any regulations. Look for more and more under the table dealings as the governments burden creates consolidation in industries. The anti-capitalist aren't wrong about people wanting monopolies, but they are wrong about the cause, its not the free market creating monopolies, its more and more regulations which probably have nothing do with meat processing.
