Cartels and monopolies.
What happens in USA this year happens in Australasia next year.
From- http://www.glynwood.org/news/healthyeating.pdf
In most US commodities today, four or fewer companies
control 50 to 80 percent of market share. Take beef for example,
four beef packers control almost 85% of the US market.
(In New Zealand they combine and set prices to farmers)
Or look at retailing WalMart is the leading food retailer in
the US. With this kind of market power, the big players can
dictate terms and force changes back through the system to the
farm level.
This concentration and the competition among the megafirms
is one reason that the part of your dollar that is actually
received by the farmer has been dropping. In 1920 it was 44%. In
1990, it was 9% and it has continued to drop since.
Just think of that: for every dollar you spend for food in the
supermarket less than a dime goes to the farmer.
Best wishes,
Vaughan Jones
Hamilton
New Zealand
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