Why Are Food Prices So High? Could it be Corporate Control of the Food Supply?

Hello Reader,

Have you ever wondered why the cost of food keeps going up?

Even fast food, like McDonald's, has risen steeply.
According to Newsweek, "McDonald's prices have increased on average by 141.4 percent across several popular items in the past five years, new research has shown."

A big reason is that a few large corporations and billionaires have a lot of control over the food supply.
This control affects what gets grown, how much it costs, and what choices you have at the grocery store.

What Does Corporate Control Mean?

Corporate control of the food supply happens when a small number of large companies dominate the market for essential farming products like seeds, fertilizers, and pesticides.
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For example, companies like Bayer-Monsanto, Corteva, and Syngenta control most of the seeds used by farmers.
This means they can set high prices because farmers have few other options. In the case of Bayer-Monsanto, farmers can't save their seeds to plant next year, they are required to buy them new each season. Maybe you've heard about the Percy Schmeiser vs. Monsanto court case? If not, check this out: Percy Schmeiser vs Monsanto: The Story of a Canadian Farmer’s Fight to Defend the Rights of Farmers and the Future of Seeds | Democracy Now!​

Another example is the meat industry, where just a few companies, like Tyson Foods and JBS, control most of the meat processing in the United States. This lack of competition allows them to influence prices and production standards, often at the expense of smaller producers and consumers.

Billionaires and Farmland Ownership

Another layer to this issue is the ownership of vast amounts of farmland by billionaires like Bill Gates, Ted Turner, and Stan Kroenke. Bill Gates, for example, owns over 270,000 acres of farmland across the United States, making him the largest private farmland owner in the country.

When a few wealthy individuals own so much land, it becomes harder for small family farms to compete.

These billionaires often have the resources to invest in advanced farming technology and large-scale operations, which can push small farms out of business.

Small family farms typically can't afford the same level of investment, and as they struggle, the big corporate agriculture businesses buy them out. This reduces the diversity of the food supply and further drives up prices for consumers.

Why Are Prices So High?

Prices are high because these large corporations and wealthy landowners have so much control. When a few companies control most of the market, they can set prices that benefit them, not consumers. For instance, if a corporation raises the price of seeds or fertilizers, farmers have no choice but to pay more, and that cost is passed on to consumers in the form of higher food prices.

Additionally, when billionaires own large amounts of farmland, they can influence what is grown and how it’s distributed.
This can lead to less competition in the marketplace and higher prices for the food that ends up on your plate.

Impact on Small Family Farms and Consumers

For small family farms, this concentration of power is a huge challenge.
These farms often operate on thin profit margins, and any increase in costs—whether for seeds, land, or equipment—can be devastating.
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As small farms disappear, large corporations fill the gap, leading to less competition and fewer choices for consumers.

For consumers, the impact is clear: higher prices and fewer options.
When just a few companies control what’s available, it’s harder to find affordable, healthy food.
This is especially true for organic or non-GMO products, which may be more expensive or harder to find because they aren’t as profitable for large companies to produce.

More reasons to dislike and avoid conventional, highly processed, and fast foods...

Corporate Greed and Its Impact on Fast Food Prices

Corporate greed is another significant factor contributing to the rising cost of fast food.
Large fast-food chains are often driven by the goal of maximizing profits for their shareholders.
This can lead to price increases that aren’t necessarily tied to rising costs of production, labor, or ingredients, but rather to boosting profit margins.

1. Profit Maximization: Many fast-food corporations report record profits even as they raise prices.
   This suggests that while operational costs have increased, some of the price hikes are also about increasing profit margins rather than just covering costs. Companies are taking advantage of the current economic situation—where consumers are somewhat resigned to higher prices—to increase their bottom line.
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2. Executive Compensation: Another element of corporate greed is the high level of executive compensation. CEOs and other top executives in these companies often receive multi-million-dollar salaries and bonuses. These compensation packages are funded, in part, by the profits generated from higher prices on menu items.
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3. Stock Buybacks: Many fast-food companies engage in stock buybacks, where they repurchase their own shares to increase the stock price. This practice benefits shareholders and executives who hold stock options but doesn’t contribute to the company’s ability to lower prices or invest in quality improvements for customers. Instead, it often leads to higher prices for consumers to maintain or boost profits.

Conclusion: While factors like inflation, labor costs, and supply chain disruptions are driving up the price of fast food, corporate greed plays a role as well. Companies are using the opportunity to increase profits, sometimes at the expense of consumers, by raising prices more than necessary. This focus on profit maximization, rather than solely covering increased costs, contributes to the overall rise in fast food prices.

What Can Be Done?

Supporting local farmers and small businesses is one way to fight back against this trend. By shopping at farmers' markets or buying directly from local farms, you can help reduce the power of these large corporations. Additionally, advocating for stronger regulations that limit how much control these big companies and landowners can have over the food supply can make a difference.

Understanding the impact of corporate control on the food supply is important. It helps us see why prices are high and what we can do to make sure everyone has access to healthy, affordable food. By being aware of these issues, we can make smarter choices as consumers and support a food system that’s fairer for everyone.

How do you feel about this topic?

(This is an excerpt from my upcoming online course, Green Essentials.)
To learn more about the course, go here: Green Courses — Green Living Now​

Be well,

Amy