e23: The more things change... the more they stay the same. Meat edition.

Monopolies Killed My Hometown

We're back to the Price Spreads Report, and this time we are focused on the Meat Packing Industry. This section fascinated me. I loved the commissions discussion about the largest meat packing companies expanding into and losing money in other business lines, like creameries. The commission found that the profits from the meat packing industry subsidized those losses, but those losses also harmed other industries. How can a small creamery compete with another creamery that can afford to lose money every year? And how can a small business today compete against companies that can lose money?

My favourite facts from the episode - In 1933, the top 2 companies - Canada Packers Limited and the Swift Canadian Company - had 85% of the sales in the industry. In 2021, the top 2 companies - JBL and Cargill - had 85% of the sales. Hmmm... The more things change, the more they stay the same.

Links from today's episode:

• The G Word with Adam Connover
• The Feasibility of Small Local Meat Packing Plants in Canada
• Let's talk turkey about competition in Canada's beef packing industry - Senator Simons
• Teachers' sells 10% of Maple Leaf Foods
• Grocery CEOs deny accusations that food price inflation is driven by profit mongering