PostPosted: Fri Oct 28, 2005 11:55 am Post subject: Reply with quote
Concentration is not unique to the packing industry nor is the distribution of the concentration in the packing industry out of line nor is their any proof to suggest that this level of concentration in the packing industry has been anything but beneficial to this industry.
During the 90,s the packer profit margins for the 5 largest packers was $3.88 per head. HOW MANY SMALLER LESS EFFICIENT PACKING COMPANIES WOULD STILL BE IN BUSINESS AT A $3.88 PER HEAD MARGIN????
Larger more efficient packing companies that sell everything but the "MOO" can and do pay a heck of a lot more for cattle than some inefficient packing plant that is paying someone to haul their ofal away like many smaller plants do.
Competition is not defined by more bidders for cattle.
This is one more issue you don't have a clue about.
Kindergarten: "competition does not lead to more concentration, the exercise of market power does."
THAT DOESN'T EVEN MAKE SENSE!
Did you impress yourself with that ridiculous statement?
SH, can you support any of the above post?