The effects of vertical integration, concentration and collusion are unfolding right before our very eyes. It is now normal for farmers to be selling their outputs to the same firm that provided their inputs. Competition cannot thrive in this environment. Not only are farmers suffering from the anti-competitive behavior in the ag industry, but consumers are as well. This anti-competitive behavior threatens to rob society of the benefits of open competition.
Competition drives firms to offer the consumer the best price.
The introduction and development of new and efficient production techniques as well as new products are also driven by healthy competition. Anti-competitive behavior is threatening to rob society of the benefits of open competition. A year ago, the price of pork fell to historic lows. While Iowa farmers took a tremendous hit, one would have assumed that the low market price for pork would have translated into a low retail price. However, this did not happen.