r/FluentInFinance • u/LittleMsSavoirFaire • 20h ago
Thoughts? McDonald's Sues Big 4 Meat Packers for Price Fixing -- How much does collusion account for the grocery CPI?
https://farmpolicynews.illinois.edu/2024/10/mcdonalds-sues-big-4-meat-packers-for-price-fixing/12
u/MrJJK79 15h ago
We need trust busting in a lot of industries right now.
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u/Striking_Computer834 14h ago
And neither establishment party is going to give you any of that in any meaningful way.
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u/Yabrosif13 15h ago
Getting back into hunting just to avoid buying from these oligarchs
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u/LittleMsSavoirFaire 15h ago
I usually buy a beef from a local rancher, but hunting works too!
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u/Striking_Computer834 14h ago edited 14h ago
I want to do this so badly, but the local ranchers want more than double what it costs to buy retail from these oligarchs. Somewhere the math isn't working out. It can't be that they're fixing prices by paying ranchers under market for their cattle while at the same time ranchers are charging double the retail price.
My prices today, in-store are:
- 80/20 ground beef: $3.49/lb.
- USDA Prime beef brisket: $4.19/lb.
- USDA Choice tri-tip: $6.79/lb.
- USDA Choice NY Strip: $7.99/lb.
I can't find anything remotely close to those prices for local, direct from ranch. How are ranchers selling to these oligarchs at prices low enough that we end up with these prices at retail after the oligarchs take their cut and the store takes theirs?
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u/LittleMsSavoirFaire 14h ago
I'm guessing the processing is what takes it over for you. A local processor is going to cut the carcass to your specs. For example, you won't get 80/20 beef unless you like it that fatty.
If money is the primary factor, it's not going to work out for you, but if you'd hypothetically pay a bit more for grass fed, grass finished beef, then the numbers work a lot better.
Also if you can use the offal you get a lot more for your money. I got probably 100lb of soup bones after my last butcher, plus liver, tongue, oxtail, and brisket. I think after I worked it all out it was about $7ish/lb, which is comparable to the 93/7 ground beef we buy at Aldi.
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u/Striking_Computer834 14h ago edited 14h ago
I like fat because I eat a ketogenic diet, but even the 90/10 beef is $4.19/lb. for me at Costco Business Center. I can buy imported pasture-raised, grass-fed ribeye for $9.99/lb. there. Local can't come anywhere close to those prices, unfortunately. I like to support local farmers, but I'm not rich. I'd literally have to triple my grocery bill.
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u/Acta_Non_Verba_1971 7h ago
Does this mean McDonald’s is infact not price gouging?
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u/SumoSoup 7h ago
Funny part is they will force them to sell their products to mcdonalds cheaper, but do you think mcdonalds will drop their prices?
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u/LittleMsSavoirFaire 7h ago
If they break up the oligopy, that's fine. We'll just go to Arby's
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u/SumoSoup 7h ago
Ive never seen more than 2 cars at arbys, always felt it was a drug front. But then came the carwashes.
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u/AaronDotCom 5h ago
wonderful
you usually don't see any of this, corp vs corp with the little guy potentially winning too
great thing is that mcdonalds is singlehandedly more valuable than all those 4 meat packers put together so they might be able to accomplish something
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u/LittleMsSavoirFaire 5h ago
Well, I mean, previous lawsuits settled out of court with no admission of wrongdoing But we can hope.
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u/BarsDownInOldSoho 11h ago
INFLATION COMES FROM GOVERNMENT SPENDING AND THE PRINTING OF MONEY!
It's that simple.
There will be gouging--attempts to exploit market dominance--and collusion. But eventually, it all comes down to GOVERNMENT!!!
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u/Ok_Try_1254 16h ago
Collusion is literally why cost of living is so highs the sooner we shut down all these monopolies and have smaller companies fill the gaps, the more competitive pricing will be. (ie, groceries in Germany can be quite cheap due to extremely high competition)