Joe Biden to promote overhaul of the meat industry in hopes of curbing prices

President Biden will on Monday promote a revision of the meat packaging industry as he blames rising consumer prices and dwindling farmers’ profits on the handful of large “middlemen” who dominate the processing segment of the supply chain.

The White House said the administration would spend $ 1 billion on expanding independent processing capacity and creating competition in a market where four meat packers control 85% of the beef market, four companies control 50% of poultry processing and four large processors control 70% of the pork market.

Mr. The bite is under pressure to alleviate inflation and supply chain pressures that make food, gas, toys and other products more expensive. At times, he has blamed the brand shock for price spills from major industrial players.

The meat processing industry is his latest target. He said dominant processors are increasing their profits at the expense of farmers and families.

“Even as farmers’ share of profits has fallen, American consumers are paying more – with meat and poultry prices now the largest single contributor to the rising cost of food people are consuming at home,” said a White House fact sheet.

Mr. The bid includes $ 100 million in labor force training and security after Congress accused the meat-packing industry of forcing workers into precarious conditions during the pandemic. Ransomware attacks also hit the industry earlier in Mr. Bid period.

“When too few companies control such a large part of the market, our food supply chains are susceptible to shock. When COVID-19 or other disasters such as fires or cyber attacks close a plant, many ranchers have nowhere else to take their animals. Our excessive reliance on just a handful of giant processors leaves us all vulnerable, with any disruption to these bottlenecks rippling around our food system, ”the administration said.

The White House said it would strengthen the rules that require farmers and ranchers to get a fair price for the meat they supply. It will also revise rules that allow meat to be labeled as “Product from the United States” if it is only processed in that country, including when meat is farmed abroad and cut in the United States.

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