Farmers Union report links high grocery prices to corporate consolidation

Noah Fish / Agweek By Noah Fish Today at 8:22 AM Listen Comments Share Share this article News Reporting News Reporting Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. The Trust Project What is this? A Minnesota Farmers Union Foundation report says corporate consolidation is a major reason grocery prices are so high, and its author wants state lawmakers to take on the problem in 2027. “The Secret Behind High Grocery Prices” from October looks at three practices: surveillance pricing, price discrimination and price fixing. The report says these practices raise costs for shoppers, push out independent grocers and leave farmers with less. ADVERTISEMENT Justin Stofferahn, antimonopoly director for Minnesota Farmers Union and author of the report, said tariffs and the war in Iran have dominated the price debate but don’t explain everything. “I think going back to the status quo doesn’t address these more structural issues,” Stofferahn said. Grocery prices in the Minneapolis-St. Paul-Bloomington metro area are up more than 34% since 2020, according to Bureau of Labor Statistics data cited in the report — around 8 percentage points more than overall inflation. Farmers aren’t seeing that money, Stofferahn said, and the report claims their share of each food dollar has dropped from about 50 cents in the 1950s to 15.9 cents. The report points to a 2025 Federal Trade Commission complaint alleging PepsiCo kept Walmart competitors from pricing soft drinks too close to Walmart. PepsiCo denied the allegations, and the FTC dismissed the case in May 2025. PepsiCo’s latest annual report says Walmart made up about 14% of its 2025 revenue. “They’re an enormous company in their own right, and yet they admit in that case that losing Walmart as a customer would have a material impact on them,” Stofferahn said. ADVERTISEMENT The report also covers Agri Stats. In 2023, the U.S. Department of Justice and several states, led by Minnesota, sued the company for allegedly helping meat processors fix prices. A settlement was reached in May. According to the report, four companies control 54% of poultry processing, 66% of pork packing and 85% of beef packing. Stofferahn said Farmers Union’s top 2027 legislative goal is a ban on surveillance pricing in retail. Surveillance pricing means using shoppers’ personal data to set individual prices. The report cites a 2025 investigation that found Instacart prices at a St. Paul Target ranged from $81.24 to $86.78 for the same basket of groceries. More policy news: U.S. Supreme Court justices push back on ranchers' argument in pipeline case 1d ago Minnesota ag needs growth, not just stability 2d ago Environmental advocates seek policy change to reduce effects of industrial ag on climate 2d ago The group also supports the Consumer Grocery Pricing Fairness Act, sponsored by Rep. Emma Greenman, DFL-Minneapolis. The bill would require suppliers to offer all grocery retailers the same terms. Stofferahn said grocers at Farmers Union roundtables told the group they pay 70% to 90% more at wholesale than big box stores charge on the shelf. He said state price-fixing law should also cover companies that “outsource their collusion” to third-party firms. “Our price-fixing laws were written 100 years ago, 100-plus years ago, when you had to meet in a smoke-filled room to set prices, and now there’s all sorts of other methods to do that,” he said. ADVERTISEMENT Stofferahn hopes the report shows high prices are not inevitable. “We can structure these markets in a fairer, more open, more democratic way to the benefit of small businesses and farmers and consumers,” he said. Comments Share Share this article News Reporting News Reporting Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. The Trust Project What is this? Tags Tags POLICY AGRICULTURE RESEARCH AGRIBUSINESS FOOD AGRICULTURE By Noah Fish I am a reporter who covers all things agriculture, using multiple elements of media. I prioritize stories that amplify the power of people. I report out of northeast Rochester, Minnesota, where I live with my wife, Kara, our daughter, Rooney, and polite cat, Zena. Email me at [email protected] Twitter Listen to this article Conversation ADVERTISEMENT What To Read Next Food A bad cold is nothing to sneeze at 3h ago · By Julie Garden-Robinson Food Lovina recalls laundry days when it was all by hand 2d ago · By Lovina Eicher Policy Robert F. Kennedy Jr. praises regenerative ag efforts at North Dakota event 5d ago · By Jenny Schlecht ADVERTISEMENT Get Local