Tuesday, Jan 8 2013 10:00PM
Cattle ranchers in Montana are concerned that large monopolies will continue to drive up prices.
Cattle ranchers in rural Montana are dismayed by existing policies that enable the nation's top four meatpackers to essentially hold a monopoly on the industry and set prices.
Currently, Tyson Foods, JBS, Cargill Meat Solutions and National Beef control 80 percent of the country's beef that is slaughtered, and as a result, local ranchers are finding it difficult to compete as a result of unfairly high pricing, according to the Billings Gazette. In addition to rising prices which have nearly doubled in the last four years, other elements, such as droughts and cold winters, have also negatively impacted Montana cattle farmers.
Not only are monopolies harmful to farmers and ranchers who help contribute to economic community development, but also to rural Americans who purchase meat. While the federal government provides grants to rural farmers to help them remain competitive, legislation has not been passed to help better regulate monopolies and pricing.
According to a recent USA Today article, food prices are expected to rise in 2013 as wages remain largely flat. As a result, many rural residents - such as those in Alaska - who are already paying high amounts for groceries and produce are likely to feel a bigger sting to their finances.
For more information, check out this resource: The Billings Gazette