The Bovine Shell Game: Why U.S. Beef Prices Remain Untouched by Foreign Imports
Same playbook, different decade: The CBS News article quaintly posits that simply adding more imported beef won't move the needle on domestic prices due to 'highly concentrated' meatpacking and processing industries. CASE A: The U.S. Meat Market Narrative (Current) The Framing: "Taming runaway U.S. beef prices will require more than stepping up imports, economists said. Here's the key to cutting
costs." The Explanation: The article, citing a Food & Water Watch report, notes that four companies control 85% of the U.S. beef market. Therefore, bringing in more beef simply means these same four companies will buy it, process it, and price it as they see fit, sans competitive pressure. Curiously, the solution offered is increasing processing capacity, which, you guessed it, often benefits...
the same dominant players. The Data Point They Missed: While the article mentions market concentration, it fails to highlight the accelerating pace. In 1970, the top four beef packers controlled only 25% of the market. By 2018, that figure had already jumped to 80% (Open Markets Institute, 2018). The trend wasn't an accident; it was facilitated by decades of lax antitrust enforcement. CASE B: The
'Free Market' Rhetoric (Historical Parallels) The Framing: Historically, whenever market controls are questioned or industries are accused of price gouging, the standard response from industry lobbies and their political allies is to blame supply-side issues, labor costs, or 'market forces.' The Example: Consider the oil industry. For decades, when gas prices spike, we're told it's due to 'global