President Biden Administration Woes
Rapid price growth in the meat industry is putting the working class at risk. With rising prices in times of the pandemic.
Four companies that have the most control of the industry have been repudiated by the Biden administration. For mismanagement of processing and pricing. As mentioned in the White House blog:
As part of a set of initiatives, the administration will funnel $ 1.4 billion in COVID-19 pandemic stimulus money to small meat producers and workers, administration aides said in the blog post. They also promised action to “crackdown on illegal price-fixing.”
There are four companies that have cut 85% of the meat industry during 2018. According to the United States Department of Agriculture (USDA).
In fact, one of these tycoon companies is Tyson, who denied the administration’s allegations. The company blamed the pandemic and the lack of manpower that limits the amount of production.
“Tyson’s scale allows it to operate efficiently, which keeps costs down for consumers,” mentioned the company.
“We’ve helped sustain this market, and it’s frustrating to see these companies turn around and raise prices,” Bharat Ramamurti, deputy director of the White House’s National Economic Council, said in an interview.
According to the Biden administration, these companies have taken advantage of the various stimulus that has helped the demand for their products.
They have responded to complaints to find the issues that are seen as anti-competitive and monopolistic that could be the cause of the price increase.
USDA and the Department of Justice are working together on an investigation to get to the bottom of the pricing fixes.
If you're paying more for meat at the grocery store, you're seeing the effects of concentration and consolidation in the meat processing industry.
Here's the data — and what the Biden Administration is doing about it.https://t.co/P7XfAkW5E4
— Bharat Ramamurti (@BharatRamamurti) September 8, 2021
“The goal of that overtime is to bring these prices down,” said Ramamurti.
President Biden committed to working with bipartisan legislation. Additionally, their efforts can help adjust the price of meat.