
One more reason why your fast-food burger might be more expensive.
The price of a fast-food burger has been rising over the last few years and recently has spiked. Some of it can certainly be attributed to inflation but McDonald's is alleging that price Fixing of beef is also taking place causing the price of your burger to go up as well.
According to MeatPoultry.com,
‘In the complaint, filed on Oct. 4 with the US District Court for the Eastern District of New York, McDonald’s said it had purchased beef from one or more of the meat processors from Jan. 1, 2015, until the present day. During that period, McDonald’s claims the companies colluded “to reduce supplies of beef in tandem, thereby raising and fixing beef prices at levels higher than prices that would have prevailed had the beef market been competitive.’
The other day I bought a bacon Quarter Pounder at Mickey D's and it cost me over $8. Some of this can be attributed to inflation, a higher minimum wage in Washington state and now possibly price fixing of ground beef.
McDonald's is now claiming that they have suffered an “antitrust injury” due to allegedly paying artificially inflated prices for beef. This is not the first time that these kinds of lawsuits have been filed against beef producers in the United States.
According to MeatPoultry.com,
‘In 2020, the DOJ issued subpoenas to Cargill, JBS, National Beef and Tyson to investigate anticompetitive activity. The processors have faced several antitrust lawsuits over the last few years.’
I guess the big question is if McDonald's is successful in this lawsuit, is it actually going to drop the price of my bacon Big Mac, and unfortunately, I'm thinking probably not. It's been my experience that once the price goes up on a product it stays there.
I hope McDonald's wins this case. But I don't see it bringing the cost of my fast-food burger down any time soon.
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