Money  /  Book Excerpt

The Price of Plenty: How Beef Changed America

Exploitation and predatory pricing drove the transformation of the beef industry – and created the model for modern agribusiness.
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The meatpacking mogul Jonathan Ogden Armour could not abide socialist agitators. It was 1906, and Upton Sinclair had just published The Jungle, an explosive novel revealing the grim underside of the American meatpacking industry. Sinclair’s book told the tale of an immigrant family’s toil in Chicago’s slaughterhouses, tracing the family’s physical, financial and emotional collapse. The Jungle was not Armour’s only concern. The year before, the journalist Charles Edward Russell’s book The Greatest Trust in the World had detailed the greed and exploitation of a packing industry that came to the American dining table “three times a day … and extorts its tribute”.

In response to these attacks, Armour, head of the enormous Chicago-based meatpacking firm Armour & Co, took to the Saturday Evening Post to defend himself and his industry. Where critics saw filth, corruption and exploitation, Armour saw cleanliness, fairness and efficiency. If it were not for “the professional agitators of the country”, he claimed, the nation would be free to enjoy an abundance of delicious and affordable meat.

Armour and his critics could agree on this much: they lived in a world unimaginable 50 years before. In 1860, most cattle lived, died and were consumed within a few hundred miles’ radius. By 1906, an animal could be born in Texas, slaughtered in Chicago and eaten in New York. Americans rich and poor could expect to eat beef for dinner. The key aspects of modern beef production – highly centralised, meatpacker-dominated and low-cost – were all pioneered during that period.

For Armour, cheap beef and a thriving centralised meatpacking industry were the consequence of emerging technologies such as the railroad and refrigeration coupled with the business acumen of a set of honest and hard-working men like his father, Philip Danforth Armour. According to critics, however, a capitalist cabal was exploiting technological change and government corruption to bankrupt traditional butchers, sell diseased meat and impoverish the worker.

Ultimately, both views were correct. The national market for fresh beef was the culmination of a technological revolution, but it was also the result of collusion and predatory pricing. The industrial slaughterhouse was a triumph of human ingenuity as well as a site of brutal labour exploitation. Industrial beef production, with all its troubling costs and undeniable benefits, reflected seemingly contradictory realities.

Beef production would also help drive far-reaching changes in US agriculture. Fresh-fruit distribution began with the rise of the meatpackers’ refrigerator cars, which they rented to fruit and vegetable growers. Production of wheat, perhaps the US’s greatest food crop, bore the meatpackers’ mark. In order to manage animal feed costs, Armour & Co and Swift & Co invested heavily in wheat futures and controlled some of the country’s largest grain elevators. In the early 20th century, an Armour & Co promotional map announced that “the greatness of the United States is founded on agriculture”, and depicted the agricultural products of each US state, many of which moved through Armour facilities.