As consumers keep paying more for groceries, including meats, inflation gets most of the blame. But small farm advocates in the U.S. say that doesn’t tell the whole story.
They want to keep the spotlight on the lack of competition.
Gary Wertish, president of the Minnesota Farmers’ Union, says the public has to realize small farmers and ranchers aren’t making a lot of money from the higher cost of meat.
“Right now, the processing industry is making large profits, and farmers are not getting a fair price,” says Wertish. “But the consumer’s also paying a high price on the retail counter.”
Four companies control roughly 80% of beef processing in the U.S.
Wertish adds that with foreign ownership more of a factor now, some of the profits are flowing out of the country.
The North American Meat Institute has criticized recent federal moves, saying labour shortages are at the center of current market issues.
Josh VanDerPol, a hog producer in western Minnesota, says he and his wife had to switch mainly to direct marketing several years ago to avoid being undercut by larger processors.
But he says not all producers can do that and are stuck trying to stay afloat while going through middlemen.
“It makes it pretty tough to achieve a price that is profitable,” says VanDerPol.
There have been efforts at the state and federal levels to expand capacity among smaller-scale processors. VanDerPol says it’s a big undertaking he hopes will pay off.
“We still have to see those plants get up and running and profitably,” says VanDerPol. “But I think that would be a very good step.”
The National Farmers’ Union notes the monopolies don’t affect just beef and poultry, but corn, soybeans and fertilizer as well.
(Courtesy Mike Moen/Minnesota News Service)
