Question

1. List the top five companies in the beef market by percentage ownership.
2. List the top four firms that own most of the hog industry. Include percentage ownership.
3. Name the top four firms that own most of the broiler chicken industry. List their percentages.
4. What is the risk to consumers when four or five firms control most of the production and distribution of animal protein? What are the consequences of lack of competition?

Answer 1

1)Tyson Foods Springdale,Ark. US market share 25% 2)Cargill meat solutions corp, Wichita,Kan.Market share 21%3)JBS USA Greeley,Colo Market share 18.5%,4)National beef packing Co LLC Kansas city, market share 10.5 %5) Smith field the 5th largest company.

2)Smithfield Foods with 31%market share,Tyson Foods with 17% market share,Swift and Co with 11% market share,Cargill with 8%market share.

3)Tyson Foods with market share 11.2 %,Pilgrims pride corporation with 7.1 % market share,Sanderson Farms Inc with 2.8% market share,Perdue Foods with 3.9 % market share.

4)The few firms that dominate may have similar cost . There will be fixed pricing in all the firms .There is a risk with such fixed pricing as rivals will adopt a more flexible discount strategy to capture  the market .The risk to consumers is that prices will be fixed and higher prices will be charged to consumers than that available in rival firms.

Consequences of lack of competition is that quality of the product may suffer.The few firms that dominate will have no incentive to supply better product.