Consumer Leaders Blame Inflation on Food Corporations: Food Firms Are Blamed For Inflation
High concentration of economic power in the food industry, leading to excess profits, Is the main cause of inflation, according to a paper presented yesterday at the Agriculture and Food Economy Summit Conference in Chicago.</br></br>A coalition, of consumer specialists claims that such concentration is the result of the inability of ÛÏweak individual consumersÛ to compete on an equal basis with ÛÏstrong corporate producers.Û</br></br>The specialists subscribe to the economic theory that competitive industries are forced to reduce their prices when, aggregate demand drops "while non-competitive industries, protecting their profit margins, raise prices.</br></br>But these decreases were not passed ,on, Mueller says. During the same period, processed food and feed rose 3.4 per cent, and consumer food prices were up 4.4	per cent. ÛÏProcessors and retailers,Û Mueller says, ÛÏhave been able to maintain or increase their margins.</br></br>ÛÏDuring the six-month period, profits of large grocery manufacturers increased over their already substantial 1973 profits.Û