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Monday, September 21, 2009

How Are Mega-companies Affecting Producers?

Take a look at the leading companies in different sectors of Agriculture. There is Tyson of JBS in the meat industry. JBS is a leading part of the cattle feeding business, along with Cactus. Pfizer has always been a leader in animal health. How does it affect producers when companies in these sectors are merged with these large companies, giving a select few major companies control of major market shares in their respective industries?

We all hear of the mergers in the meat industry. Tyson has been a big player in meat; controlling large market shares of beef, poultry, and pork. JBS is catching up fast with their recent acquisition of Pilgrims Pride, a poultry company. The drug companies switch owners so fast no one can keep track of it.

I think with all of this going on, we as producers in the industry need to take a look at how this affects us. Do these mega-companies benefit us through combined resources for research and development? Or does this burn us from behind by leading to monopolies in certain markets, and in the future companies taking advantage of the lack of competition? I know what my opinion on this topic is, but I want to know what you think of this...

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