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Biden tackles rising meat prices

2021-09-08T20:47:55.152Z


The Biden administration has decided to tackle rising prices for beef, pork and poultry, which it says is responsible for a significant portion ...


The Biden administration has decided to tackle the rising prices of beef, pork and poultry, which it says is responsible for a significant portion of inflation in the United States, saying it suspects illegal practices.

Read alsoUnited States: employment and inflation targets not yet achieved

Inflation stood at 4.2% over one year in July, against 4% in June, but it is starting to show signs of moderation from month to month, according to data released at the end of August by the department. Trade. According to the White House, price hikes in beef, pork and poultry account for more than half of the price increases experienced by consumers in the past year.

On Wednesday, White House economic adviser Brian Deese blamed the consolidation in the meat industry a handful of large food companies are accused of making large profits at the expense of ranchers and of consumers.

"This is the story of industries consolidated with companies that generate record profits, then drive price increases for consumers, without passing those benefits on

to meat

producers,"

he said during a press point at the White House.

He stressed that the goal is to

"focus on ways to promote more competitive practices and greater competition between industries, which could lower prices for consumers and benefit middle-class families

.

"

The government will thus encourage greater price transparency, with the aim of helping breeders and ultimately consumers at the grocery store.

Price Agreements

To do this, the American justice will in particular investigate potential price agreements in the poultry industry while the government will provide assistance to small businesses and workers.

“Four big conglomerates overwhelmingly control meat supply chains, lowering farmers' incomes while pushing up prices for consumers,”

the White House said in a statement. The meat packaging industry buys cattle, pigs and chickens from farmers and ranchers, processes them, and then sells beef, pork and poultry to retailers like grocery stores. Today,

"Only four companies control about 55 to 85% of the market for these three products, according to data from the US Department of Agriculture,"

adds the White House.

Over the past five decades, large conglomerates have absorbed large numbers of small processors.

“In 1977, the four largest beef packers controlled only 25% of the market, compared to 82% today. In the poultry sector, the top four processors controlled 35% of the market in 1986, compared to 54% today. And in pork, the four main processing companies controlled 33% of the market in 1976, against 66% today, ”

according to a White House report which intends to turn the tide and introduce more competition in the sector.

Source: lefigaro

All business articles on 2021-09-08

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