The Biden administration plans tougher actions to keep meat prices down

File Photo: Meat is trimmed to be ground on May 14, 2020 at a butcher shop in New Tripoli, Pennsylvania, USA. REUTERS / Jonathan Ernst / File Photo

September 8, 2021

By Trevor Hunnicutt

Washington (Reuters)-The Biden administration plans to take a stricter stance against meat packaging companies that claim to be causing sticker shocks in grocery stores.

Four companies dominate most of the US meat processing market, with President Joe Biden’s top aide blogging Condemned the rise in food prices. Responding to American families to lower food prices from the meat processing industry on Wednesday.

As part of a series of initiatives, the government will pour $ 1.4 billion in COVID-19 pandemic incentives into small meat producers and workers, a blog post said. They also promised to “control illegal price-fixing,” a White House aide said in a blog post.

Four companies account for about 85% of US grain fattening cattle slaughtered Was slaughtered. Roast beef and other meat fillets for consumers in 2018, according to the latest data from the United States Department of Agriculture (USDA).

The four major processors in the US beef sector are: Cargill, a global commodity trader based in Minnesota. Tyson Foods Inc is a chicken producer, the largest meat company in the United States in terms of sales. JBSSA is based in Brazil, the world’s largest meat packaging company. National Beef Packing Co managed by Brazilian beef producer Marfrig Global Foods SA.

Both companies did not immediately respond to requests for comment. After Reuters reports, Tyson shares temporarily fell into mass trading.

According to the White House, price increases for beef, pork and chicken have boosted half of the price increases Americans have paid for food they eat at home since December. And the government is seeing those companies making too much profit after the stimulus helped support the demand for their products.

In an interview, Barrat Ramamulti, Deputy Director of the White House’s National Economic Council, said, “We have helped maintain this market. It’s frustrating to see these companies turn around and raise prices. I will. ” “What we are seeing here is only part of the pandemic’s profits, which is the behavior the administration is concerned about.”

Rising inflation poses a serious threat to Biden’s efforts to grasp his top priority as president, the COVID-19 pandemic, and to design an economic recovery from the recession it caused.

The Biden administration has partially addressed these issues by stepping up efforts to crack down on what appears to be anti-competitive and monopoly behavior that could raise prices. A new White House Competition Council meeting created by Biden is set for Friday.

USDA and the Department of Agriculture are already conducting a price-fixing survey in the chicken processing industry.

“Over time, the goal is to lower these prices,” said Rama Multi.

US lawmakers are trying to increase surveillance of the beef sector amid growing concerns about anti-competitive behavior after a pandemic and cyberattacks on JBS USA.

The government has been “encouraged” by bipartisan legislation that may support more price negotiations in the meat market, he said in a blog.

(Report by Trevor Hunnicutt in Washington, additional report by Tom Polansek in Chicago and Chuck Mikolajczak in New York, edited by Matthew Lewis)

The Biden administration plans tougher actions to keep meat prices down

Source link The Biden administration plans tougher actions to keep meat prices down

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