While research points toward the conclusion that larger meatpackers have exercised market power, many researchers interpret the results as inconclusive. This was also a conclusion of the 1990 U.S. GAO review of available research. At the same time, studies of livestock processing industry costs clearly show these costs are substantially lower for large firms and that these benefits result in higher livestock prices. The bottom-line of published research is that the gains to efficiency of large firms are greater than losses attributable to the exercise of market power. Efficiency gains are in most cases orders of magnitude greater than market power losses.
Industries continue to innovate and change.
Likewise, the economics profession develops new models to study conduct and measure the impact on economic performance. We need to look ahead and continue to be vigilant, but we also need to be scientific and discuss what we know as the truth no matter how unpopular it is. Livestock slaughtering and grain processing industries have become dominated by large plants and firms. Such structural and behavioral changes affect the economic performance of firms and industries. Economic performance measures include efficiency, profitability, productivity, and investment in research and development, among others.