Beef packer concentration leads to lower prices for slaughter cattle.
Beef packers pay less for cattle in regions where there are fewer companies buying cattle. However, the price of cattle is influenced more by the type and quality of the cattle being sold rather than how many packers are in the area. Other factors like packer size and how they buy cattle also play a role, but the type of cattle being sold is the most important factor in determining the price paid by packers.