Biden administration officials on Wednesday expressed concern over rising meat prices at the grocery store and outlined the measures officials are taking to ease the burden on families and farmers.
Appearing in an information session of the White House, director of the National Economic Council Brian Deese
Brian DeeseOvernight Energy & Environment – Presented by the American Petroleum Institute – Federals point to FTC illegal gas practices to investigate any “collusive” practices on gas prices. He said the rise in prices of meat products (poultry, beef and pork) is causing half the rise in the price of food experienced by consumers in grocery stores. Deese noted that four companies control most meat supply chains, with those companies recording record or near-record profits during the coronavirus pandemic. These companies are JBS, Tyson Foods, Cargill Meat Solutions Corp. and National Beef Packing Co.
“When you see this level of consolidation and the increase in prices, you are concerned about taking advantage of the pandemic, for companies that drive price increases in a way that harms consumers who go to the grocery store and not they benefit from the actual cash. producers, farmers and ranchers who grow the product, ”Deese told reporters.
To deal with rising prices, the Department of Agriculture plans to invest $ 1.4 billion in pandemic assistance to relieve small producers, processors and distributors, officials said in a blog post. The USDA and the Department of Justice are also conducting a joint investigation into pricing in the chicken processing industry.
The USDA is also expanding the Emergency Assistance Program for Livestock, Bees, and Farm-raised Fish to include aid to help cover feed transportation costs, in order to address the impacts of drought on meat prices.
Administration officials say they will also work with Congress to improve price discovery in livestock markets. The White House blog post says the administration is “encouraged” by bipartisan legislation that aims to increase transparency in the price of livestock.
“The reality today is that farmers are losing money on cattle, pigs and poultry that are being sold at a time when consumers are seeing higher prices at the grocery store,” the Agriculture Secretary said Tom Vilsack
Tom VilsackUSDA: School Farm Programs Help Schools Serve Healthier Meals MONEY OVERNIGHT: A House Ready to Approve Debt Limit Bill MORE he said at Wednesday’s briefing.
Vilsack said the administration’s goals are to ensure farmers get a fair return and consumers get fair prices.
Tyson Foods issued a statement Wednesday evening rejecting White House claims, saying the rise in beef prices has been caused by “unprecedented market conditions.”
“Multiple unprecedented market shocks, including a global pandemic and severe weather conditions, caused a
“The unexpected and drastic drop in meat processors’ capabilities to operate at full capacity, ”Tyson said, led to an oversupply of live cattle and an insufficient supply of beef, while demand for meat products it was at an all-time high. As a result, the price of cattle fell, while that of meat rose. Today the prices paid to cattle producers are rising. “
The company added that it is “inaccurate to suggest that consolidation in the meat processing industry leads to higher prices for consumers.”
The latest consumer price index showed that grocery prices rose 0.6 percent from June to July this year and that over the past year, prices rose 2.6 percent . The food industry is one of many sectors that have experienced inflation during the coronavirus pandemic.
Republicans have tried to attack President Biden
Joe Biden Trump will offer comments on the 9/11 heavyweight fight. Manchin would support the spending plan of at most. on rising prices for goods and services, trying to link pandemic-driven inflation to their policies.
Updated at 8:37 p.m.