http://www.reuters.com/article/innovationNews/idUSTRE5826DK20090903
The biggest problem with these companies getting into the other meats is that they are able to maintain profits in one meats area while driving out competition in the other. They can subsidize the losses in one meats area while making it in another and all the people who have positions in only one meat will be put out of business.
During Tyson's IBP market manipulation, Tyson did not act "competitively" in the beef industry and helped drive prices down in beef. They more than made up for those anti competitive actions when the price of chicken went from 52 cents per lb. to over 90 cents per lb. due to the structure they have in their contracts in the poultry business.
By taking these kind of actions, they are able to force out people who are not diversified into the other meats categories.
The Justice Department still does not understand anti-trust laws or how they protect market participants.
When will we get some competency and a willingness to make the markets fair for all instead of the political payoff system we have today that promotes their incompetency?
Can they not read the consent agreement the packers of the day made when the Packers and Stockyards Act was passed?
Some of these guys don't need to be in positions of power because they are too incompetent to preform their duties. One of the real reasons is that politicians are getting paid to allow and encourage this incompetency.
Tex
The biggest problem with these companies getting into the other meats is that they are able to maintain profits in one meats area while driving out competition in the other. They can subsidize the losses in one meats area while making it in another and all the people who have positions in only one meat will be put out of business.
During Tyson's IBP market manipulation, Tyson did not act "competitively" in the beef industry and helped drive prices down in beef. They more than made up for those anti competitive actions when the price of chicken went from 52 cents per lb. to over 90 cents per lb. due to the structure they have in their contracts in the poultry business.
By taking these kind of actions, they are able to force out people who are not diversified into the other meats categories.
The Justice Department still does not understand anti-trust laws or how they protect market participants.
When will we get some competency and a willingness to make the markets fair for all instead of the political payoff system we have today that promotes their incompetency?
Can they not read the consent agreement the packers of the day made when the Packers and Stockyards Act was passed?
Some of these guys don't need to be in positions of power because they are too incompetent to preform their duties. One of the real reasons is that politicians are getting paid to allow and encourage this incompetency.
Tex