World Perspectives

Monopolistic Impacts

One of the charges by populists in the agricultural sector is that consolidation has led to monopolistic conditions, or at least a monopsonist situation. Often cited as an example is the meat packing industry, though it has been investigated repeatedly. There are tools that enable better price hedging by producers, though they are used less than they should. USDA and the futures industry will attempt to remedy the problem with four outreach and training sessions at the end of this year focused on cattle contracts, factors impacting carcass quality and ultimately improving acceptance and premium pricing of steers.  There is also the charge of monopoly when it comes to the input industry. However, no producer is forced to buy the latest...

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