[giantg2]

That's a duopoly, which is hopefully better than a monopoly. It forces competition and will at least keep the independent people solvent. Hell, you can structure it where the processing fee is set and the producers set their own sale prices.

What other options. Is there for beef production?

[AnthonyMouse]

You misunderstand. It's not that there was one monopoly wholesaler and now there are two. It's that there was one monopoly wholesaler, and there still is, but now it's negotiating with a new cartel of manufacturers. That's not better.

Don't form a new cartel, break up the old monopoly.

[giantg2]

Who is this monopoly wholesaler?

Also, it's not a cartel if they don't control/regulate production.

[AnthonyMouse]

I see the confusion, you're the OP and you're talking about what you suggested instead of what azemetre suggested.

The independents creating their own meat packing plant is a fine idea. Increase competition. It's like a co-op in reverse. They could even accept third party jobs. If they were even smarter they'd open one, sell it as a going concern, use the money to open another one, and repeat until the concentrated market is good and thoroughly disintegrated.

Having the independents come together to form a cartel to negotiate with the existing concentrated market of meat packing plants is the bad idea.