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Unformatted text preview: off the proceeds. The sort of hard-working ranchers long idealized in cowboy myths are the
ones most likely to go broke today. Without receiving a fraction of the public attention given to the northwestern spotted owl, America’s
independent cattlemen have truly become an endangered species.
Ranchers currently face a host of economic problems: rising land prices, stagnant beef prices, oversupplies of cattle, increased shipments of
live cattle from Canada and Mexico, development pressures, inheritance taxes, health scares about beef. On top of all that, the growth of the
fast food chains has encouraged consolidation in the meatpacking industry. McDonald’s is the nation’s largest purchaser of beef. In 1968,
McDonald’s bought ground beef from 175 local suppliers. A few years later, seeking to achieve greater product uniformity as it expanded,
McDonald’s reduced the number of beef suppliers to five. Much like the french fry industry, the meatpacking industry has been transformed
by mergers and acquisitions over the last twenty years. Many ranchers now argue that a few large corporations have gained a stranglehold on
the market, using...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08