United States President Joe Biden unveiled a new plan by the White House to invest $1 billion to boost competition in the country's meat industry as the Democratic leader continues to fight against soaring prices in the region.
The U.S. president announced the issuance of new rules that would support independent meat processors and ranchers. Biden's plan aims to address a lack of "meaningful competition" in the meat sector and comes amid rising concerns that a handful of big beef, pork, and poultry companies have too much monopoly over the American meat market.
Rising Meat Prices
Many believe that the situation of large companies having too much control over the industry is allowing them to dictate wholesale and retail pricing to profit at the expense of their suppliers and customers. The U.S. president said that, without competition, capitalism was simply exploitation, arguing that it was what the American people were seeing in the meat and poultry industries now.
In a recent analysis conducted by the White House, authorities found that the top four meatpacker companies in the United States; Cargill (CARG.UL), Tyson Foods Inc. (TSN.N), JBS SA, and National Beef Packing Co (MRFG3.SA), had control of 55% to 85% of the market in the hog, cattle, and chicken sectors, Reuters reported.
The money that the White House would be investing into the meat industry is coming from the American Rescue Plan. On Monday, Biden had a virtual meeting with family and independent farmers and ranchers to discuss his administration's new four-part plan.
During the meeting, Biden said that farmers and ranchers were being driven out of the meat business, even those that have been around for generations. The Democrat said that the situation was striking at their dignity, their respect, and the family legacy.
Biden said that while the profits of the four top meat-processing companies continue to go up, the prices that American citizens see in grocery stores also rise in proportion. Additionally, farmers receive less pay for the products that they are bringing to the industry, CNN reported.
$1 Billion Funding
The situation comes as Biden allegedly discovered the soaring prices of meat in the country from a family friend. Over the holidays, the member allegedly told the president that ground chuck can now cost $5 per pound.
However, Monday, the U.S. president said that his beef was with corporate "middlemen" rather than decades-high inflation that has resulted in rising prices among food and consumer goods. Biden also went on to explain that farmers have been receiving less than half of what they used to for every purchase of beef in the country.
Attorney General Merrick Garland also attended the event in the White House where he spoke about the Justice Department's interest in enforcing laws against anti-competitive behavior made by monopolies in the United States. In November, inflation in the country has been the highest in the last 39 years, with the average price for a range of goods rising by 6.8% above those from the year before, the New York Post reported.
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