The Future Economy essays

The Future Economy essays Imagine yourself living the dream of being an entrepreneur. You are a business man of the 21st century; you have a popular product that many firms want to purchase. You feel financially secure with your future because of the amount of buyers for your product. Then 5 years go bye, and the once abundant number of firms has dwindled down to a couple of major corporations. You try to think to yourself how did this happen? You then realize that all the little companies that fought for your business, and helped you get the highest capital are gone. They were acquired by or merged with larger firms. You know that when this happens the market gets smaller and there are less people to buy your product. With fewer options of companies to sell your product to, comes a smaller amount of profit for you. Two more years go bye and the market gets more concentrated, the remaining giants can now offer you any price they want. If you choose not to accept it, you dont sell your product. Your dreams of being your own boss and selling a quality product for a fair price are fading away. Some people may think that this story couldnt happen, but mergers and acquisitions take place everyday in the corporate world. This story that I just told you about is real. Instead of being about business men of the 21st century my article was about the beef cattle farmers of southwestern Wisconsin. The article talks about Virginia-based Smithfield foods, acquired American Foods Group and Packerland Holdings Co. Smithfield is the nations largest pork processor; they have a 20% market share. Besides the two recent acquisitions Smithfield also has ownership of Cudahy-based Patrick Cudahy Inc. As a result of this Smithfield will now be the nations forth-largest beef processor, with a 9% market share. Smithfields merger is part of an overall consolidation among the nations larger food processors, which include...