Increased industry consolidation in U.S. food processing boosts efficiency, lowers costs.
Increased consolidation in the U.S. food processing industry was studied to see if it helps or harms. The researchers used a model to look at how efficiency and market power are affected by industry concentration. They found that efficiency gains are more significant than market power effects when consolidation happens. This means that when the U.S. beef industry consolidated, it became more efficient rather than gaining more market power.