News Meat
US helps meat processors compete with big 4
US President Joe Biden accuses slaughterhouses that consumer prices for meat have risen sharply. According to him, the way in which pricing is established must be overhauled. The meat market is dominated by the 4 major meat companies, which made significant profits during the corona pandemic.
In the United States, meat prices in supermarkets have risen sharply in recent months, against the sore leg of Biden, who champions the middle and lower classes of society. JBS, Tyson Foods, Cargill and National Beef Packing together control approximately 85% of the US meat market. According to the government, this monopoly drives up prices.
High profits in the meat world
Among other things, reference is made to the high profits made by the meat companies during the corona pandemic. Indeed, the Biden administration has a point. Tyson Foods significantly increased its profits in 2020 and that trend will continue this year. It Brazilian JBS even recorded the best results ever in the second quarter. Gross profit rose 10% to over $2 billion.
Supporting small meat processors
To counterbalance the dominant meat processors, Biden will financially support the smaller meat processors in the country. The United States Department of Agriculture (USDA) is making $1,4 billion available for this. An investigation is also being launched into how price agreements are established in the poultry sector. They would not be transparent.
Wouter Job
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