Food And Beverage
The United States will issue new rules and allocate $1 billion funding to independent meat and poultry producers and ranchers a part of a plan to address a lack of competition in the meat-processing industry.
President Biden’s plan to make room for more competition in the meat-processing industry comes amid rising concerns that a few big beef, pork, and poultry companies have too much control over the American meat market, allowing these food processing companies to dictate wholesale and retail pricing to profit at the behest of their suppliers and customers.
President Biden met virtually with family and independent ranchers and farmers to discuss his administration’s new four-part plan and said, “Capitalism without competition isn’t capitalism. It’s exploitation. That’s what we’re seeing in the meat and poultry industries now.”
Agriculture Secretary Tom Vilsack said the Department of Agriculture (USDA) would spend the $1 billion from the American Rescue Plan funds to expand the family and independent meat processing sector, including funding financing grants, worker training, and guaranteed loans.
A recent White House report found that the top four meatpacker companies—Cargill, JBS SA, National Beef Packing Co., and Tyson Foods Inc.—control almost 55% and 85% of the market in cattle, hog, and chicken sectors.