The COVID-19 pandemic has exposed the fragile nature of America's meat supply chain as tens of thousands of meat industry workers fell sick, and hundreds died.Right now, 80% of the US beef market is controlled by four huge meat producers, and they're the target of a Justice Department antitrust investigation.The coronavirus is already having a massive impact on the way Americans get their meat — and even bigger changes could be coming in the future.
At the same time, small-scale meat processors in the US have seen a huge spike in demand as consumers search for alternative meat sources. Husband-and-wife founders Cody Hopkins and Andrea Todt created Grass Roots' business model because the big slaughter companies process so many animals that they're able to lower prices in their favor, making it very hard on independent farmers.
In the aftermath of World War I, five companies controlled the American meat supply chain by owning feedlots, railcars and railyards, stockyards and slaughterhouses, refrigeration plants and distribution centers. Grocery stores and consumers loved the convenience, and by the late 1970s, it had become the industry standard. It was also the beginning of a reconsolidation in the industry.
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