What Is an Oligarchy and What Does It Have to Do with Our Food System?

In his farewell address, President Joe Biden warned the American people that our government is becoming an “oligarchy.” But what exactly does that mean? And what does it have to do with our farming or our food system? 

Oligarchy (noun): government by the few, especially despotic power exercised by a small and privileged group for corrupt or selfish purposes

Source: Britannica

The term comes from Ancient Greek and literally means “few command.” And though there is some debate over how the term applies to our country as a whole, it has caught our attention as it applies to our industrial food system.

Oligarchy? Corporate Control by the Numbers

It is widely accepted that if just four companies have more than a 40% share of a single market, consumers, farmers, and small companies pay the price. Meatpacking is certainly no exception. With industries becoming more and more vertically integrated, giant corporations control the farming process from seed to shelf. This way, our food system funnels profits to shareholders over farmers and workers, all while limiting consumer choice.

Here’s how the numbers break down:

• Just four companies own 80% of the beef industry: JBS, Tyson, Cargill, and National Beef.
• Four also control 70% of the pork industry: JBS, Tyson, Smithfield, and Hormel.
• And just over 50% of the poultry industry is controlled by JBS, Tyson, Perdue, and Sanderson.

These companies own dozens of brand names all over the world, from Pilgrim’s Pride and Smithfield to Jimmy Dean and more. Different logos and food brands make consumers feel like they have a choice, but in reality, a majority of consumer dollars go to these same few megacorporations. 

What a Food System Oligarchy Means for Consumers

When the largest meat corporations have few competitors, they have a clear pathway to artificially inflate food costs. The result is a marketplace where both consumers and farmers are left with few choices and high prices.

Advances in modern technology have enabled price-fixing collusion. Agri Stats, an agricultural data and analysis company, provides a means for this. Big Meat companies—which should be competitors—use it to share data about their costs, output, and prices. Agri Stats standardizes all this proprietary data and distributes it to subscribing companies in a detailed report. Knowing every other company’s plans, prices, and pay enables these companies to restrict meat supply, inflate prices, and decrease producer wages. 

Agri Stats estimates that more than 90% of chicken, pork, and turkey producers are subscribers. Technically, such collaboration is illegal, and major companies have paid millions in price-fixing settlements.

“The food industry is just full of cartels. And that’s what cartels do. They gouge.”

—Austin Frerick, Author of Barons: Money, Power, and the Corruption of America’s Food Industry, to Civil Eats

It’s easier than ever for corporate giants to increase their profits at the expense of farmers, processing workers, and consumers. Though the DOJ is taking steps to eliminate this unfair practice, change will take time—especially considering that with deep pockets comes significant influence over legislation and politicians.

Big Meat groups and companies spent more than $10 million on lobbying and political contributions in 2023 and another $3 million on lobbying in 2024. For some, contributions were at an all-time high. Many have linked the increase to the Farm Bill, among other concerns. 

What a Food System Oligarchy Means for Farmers

Meatpacking corporations love to push a family-farm image, but what is owning a farm actually like? For those who are operating under contract with “integrators,” or big meatpacking companies, these relationships are often described as exploitative. In fact, many farmers in contract relationships claim they feel like “serfs” on their own land. Companies supply the animals, dictate what feed and medications are supplied, and even control how animals are raised.

As more and more farms consolidate and smaller companies are absorbed by corporate giants, small farmers are being pushed out of work and off their land. 

“We own the farm, we own the land, we own the chicken house. We don’t own the chickens. So they bring us chickens to take care of, and they pay us for babysitting.”

—Tom Lim, Transfarmation Farmer and Former Contract Poultry Grower

In 2019, nearly half of U.S. poultry farmers had a negative net income. In that same year, the combined value of poultry production was $40.4 billion. Around 70% of that came specifically from chickens raised for meat. Such a discrepancy certainly raises some questions. Namely, how can we fix a food system that prioritizes shareholder value over farmer and consumer welfare?

A Resilient Food Future

The Transfarmation Project® is working directly with farmers to build a more sustainable and just food system. One of the main ways we do this is through repurposing their factory farms for growing plants. 

All of the resources we create and the data we collect are made accessible to other farmers and organizations to facilitate widespread farm transitions. Since industrial animal agriculture has been exported all over the planet, any farmer in the world can benefit from our work.