Control and Profits

The fast food companies rely on meatpacking companies to generate the food products consumers will purchase. They know that meat products must be uniform and cheap. In order to keep meat products cheap the meatpacking corporations exert acute control over the production process. Their power comes from this control, and this power leads directly to real material profits.

First, the companies act as an oligopsony: a group of buyers that have enormous power of cattle ranchers because they are few and the ranchers many (117). Additionally, the meatpacking companies have “captive” cattle supplies to put downward pressure on cattle prices when ranchers go above their desired price. Once the meat has been processed, the final costs are kept down by the fast food companies themselves. They hire “marginalized workers,” or vulnerable workers that are disabled, immigrants, or elderly (71). Paid with a minimum wage, these workers can’t complain out of desperation. They serve the meat products to consumers, and lack better choices.