Big Food is built to outlast smaller competitors
Large farms, food processors and restaurant operators have much brighter prospects than their smaller counterparts grappling with the coronavirus crisis.
The big picture: They have access to capital markets, including the trillions of dollars being injected into the fixed-income markets by the Federal Reserve.
- The top three meat processors — Tyson Foods, JBS and Cargill — account for about ⅔ of the market and therefore count as being too big to fail. Hence President Trump's decision to invoke the Defense Production Act to keep their facilities running.
- Big farms have a bright future selling to China, which has promised to buy more than $40 billion of U.S. agricultural goods and which is facing a severe domestic pork shortage.
The bottom line: The total amount that we eat isn't going down. If the food we're eating isn't coming from small farmers, it's coming from large ones.
Go deeper: Coronavirus breaks the food supply chain