Biden puts target on back of major industry as inflation surges

Biden’s government accused the corporations of supporting anti-competitive activities among meatpacking industries just a few months ago and stated the behavior resulted in price rise of chicken and meat products. On Monday, President Joe Biden will reveal a new plan aimed at a small number of meatpacking companies that control the majority of the country’s meat supply.

Biden will have a virtual conference with ranchers and farmers, as well as with Attorney General Merrick Garland and Agriculture Secretary Tom Vilsack, to reveal a strategy to tackle rising costs. The plan’s goal is to enhance competition across the business while also providing $1 billion in federal money to minimize COVID-19’s impact. The aid package is intended to aid in the expansion of independent poultry and meat processing capacities.

The White House intends to invest in industry worker training and better working conditions. Meatpackers who utilize the Product of USA label will be subject to tougher controls. Consumers will be informed about the origins of their meat in the future.

The Departments of Agriculture and Justice are collaborating to establish a website that will allow independent farmers to report market irregularities. This is yet another strategy for combating anti-competitive behavior.

According to a White House fact sheet, the top four meatpacking companies dominate 85 percent of the beef market, while the top four poultry-processing companies control around 54 percent of the industry. For pork, the four largest companies account for 70% of the market.

Nonetheless, labor shortages, increased fuel prices, and supply chain bottlenecks have been blamed by the meat sector for the higher pricing.

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