There’s currently a shortage of and a monopoly on processing facilities. That’s the real reason why prices are high.
-SB
Yes, this is a big problem not only in the farming/animal husbandry industry, but in many other industries such as automobiles, airlines, steel, oil, telecommunications, etc. Too few players equal a race to the bottom in terms of service, price competitiveness, etc. At worst they act as cartels. See the German auto industry for examples of cartel activity and how it has been detrimental to consumers and the overall market.
Agreed. And according to https://alec.org/article/wheres-the-beef-regulatory-barriers-to-entry-and-competition-in-meat-processing-joe-trotter/ (from mid-2023):
As a result of the laws and regulations governing who can process meat for commercial consumption, there are high barriers to entry for small businesses looking to increase their market capacity. In order to have a full-time inspector or multiple inspectors on site, producers are required to furnish rent-free office space, laundry service, and other amenities for FSIS representatives.