The Atlanta Journal-Constitution
Biden seeks to cut meat prices with aid to farmers
Industry blames labor shortages, fuel costs and supply-chain issues.
President Joe Biden was to announce plans Monday to combat the market power of the giant conglomerates that dominate meat and poultry processing, ratcheting up a monthslong campaign that has blamed anti-competitive practices in the industry for contributing to surging food inflation.
Biden was to join Agriculture Secretary Tom Vilsack and Attorney General Merrick Garland to meet virtually with ranchers and farmers to hear complaints about consolidation in the industry, while a newly launched portal will allow them to report unfair trade practices by meatpackers. The White House is highlighting initiatives it is taking to counter meatpackers’ economic power, including $1 billion in federal aid to assist expansion of independent processors and new competition regulations under consideration.
Inflation has swiftly moved to the top of public concerns as the annual rise in consumer prices hit its highest level in 40 years. Meat prices, which in November were up 16% from a year earlier, have been the biggest contributor to grocery inflation. Meatpacking industry representatives have blamed soaring prices on labor shortages, rising fuel prices and supply-chain constraints.
Biden singled out the meat and poultry processing industries for scrutiny in a July executive order on promoting competition across the economy. His top economic adviser later criticized meatpackers for “pandemic profiteering.” The U.S. Agriculture Department also announced plans in June to consider three new sets of regulations on unfair trade practices in livestock and poultry markets, with officials anticipating the proposal of new rules early this year.
The president has placed critics of corporate consolidation in key positions across his administration, including Lina Khan as chair of the Federal Trade Commission and Jonathan Kanter as assistant attorney general for antitrust.
Four large meatpacking companies control more than 80% of U.S. beef processing capacity, with similar levels of concentration in pork and poultry processing.
A fact sheet the White House distributed to reporters asserts that as a result most livestock producers “now have little or no choice of buyer for their product and little leverage to negotiate.” Tyson Foods reported record profits on its beef processing in quarterly earnings released in November.
The aid for independent meat and poultry processors, which will come from COVID-19 relief funds, includes $375 million for gap financing grants and $100 million for guarantees of loans made through private banks, according to the fact sheet.