Biden targets US meat firms in effort to tame surging prices

0
48
biden-targets-us-meat-firms-in-effort-to-tame-surging-prices

The Biden administration unveiled a plan Monday to increase competitors in the meatpacking business — and alleviate surging meals prices amid skyrocketing inflation.

The plan earmarks $1 billion in funds from the “American Rescue Plan” towards increasing processing capability for impartial meat processing firms, the White House introduced.

The sum consists of $275 million in capital help for impartial firms and $100 million towards job growth and coaching.

The initiative is President Biden’s newest effort to alleviate pressure on Americans as inflation reaches its highest level in a long time. Biden and high administration officers argue giant corporations have stifled competitors, exacerbating inflation and better prices for on a regular basis objects resembling meat and fuel.

As a part of the White House’s plan, the Justice Department and the Agriculture Department will launch a joint effort to coordinate actions geared toward anti-competitive conduct.

President Biden has mentioned that enormous corporations have stifled competitors, exacerbating inflation and better prices for on a regular basis objects resembling meat and fuel.
Stephen Gosling/NBAE by way of Getty Images

The Biden administration will even tighten guidelines governing “Product of USA” meat labels, amongst different steps.

“Even as farmers’ share of profits have dwindled, American consumers are paying more—with meat and poultry prices now the single largest contributor to the rising cost of food people consume at home,” the White House mentioned in a fact sheet detailing the plan.

“And, when too few companies control such a large portion of the market, our food supply chains are susceptible to shocks,” officers added.

The US Consumer Price Index rose 6.8 % in November 2021 in contrast to the identical month one year earlier.
Getty Images

Administration officers say the plan will assist to handle ongoing provide chain bottlenecks and ease monetary stress for each customers and opponents. The White House mentioned the 4 largest meatpacking firms management 85 % of the meat market, 70 % of the pork market, and 54 % of the poultry market.

Outsized management over {the marketplace} outcomes in a “key bottleneck in the food supply chain,” in accordance to the White House.

President Biden and different high administration officers will talk about the plan with a gaggle of farmers and impartial meat processors throughout a digital occasion on Monday.

The White House unveiled a plan that has the Justice Department and Agriculture Department launching a joint effort to coordinate actions geared toward anti-competitive conduct.
Getty Images

The US Consumer Price Index rose 6.8 % in November 2021 in contrast to the identical month one year earlier. The improve was the best 12-month spike since 1982.

Beef prices rose 21 % year-over-year in November, in accordance to Labor Department knowledge.

In December, White House press secretary Jen Psaki mentioned the spike in prices was due to “the greed of meat conglomerates.”

However, some critics have pushed again on parts of the president’s technique to fight inflation. Last month, former Treasury Secretary Larry Summers warned that an antitrust crackdown may trigger inflation to worsen relatively than enhance.

“The emerging claim that antitrust can combat inflation reflects ‘science denial,’” Summers wrote on Twitter on the time. “There are many areas like transitory inflation where serious economists differ. Antitrust as an anti-inflation strategy is not one of them.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here