, alleged price manipulation in beef markets can be traced to the concentration of the meat packing industry into four large companies that control 85% of the beef processing market.
This is in contrast to “spot” markets in which the feed lots and cattle ranchers could potentially get higher prices based on real-time market conditions.than true market conditions would dictate, due to the meat packer’s demand for these fixed contracts known in the industry as “alternative marketing arrangements.” This has resulted in cattle operations going out of business, thus reducing the supply of cattle which can result in higher beef prices.
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