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White House’s Detailed Action Plan For Expanding Meat And Poultry Sector

Amid rising meat and poultry costs, the White House has unveiled an action plan targeted at greater competition in the US meat and poultry processing sector.

Shivani Meena
Meat processing
Meat processing

Amid rising meat and poultry costs, the White House has unveiled an action plan targeted at greater competition in the US meat and poultry processing sector.

"The meat and poultry processing sector is a textbook example, with lack of competition harming consumers, manufacturers, and our economy," the White House stated in a fact sheet to accompany the announcement of its plan to build a more marketable, reasonable, and resilient meat and poultry supply chain.

"When dominant middlemen dominate so much of the supply chain, they may enhance their own money at the cost of both farmers – who earn less – and consumers – who purchase at a higher cost," the White House stated, noting that four large meat-packing businesses control 85% of the beef industry.

The White House stated "When too few corporations control such a huge share of the market, our food supply networks are vulnerable to shocks. When Covid-19 or other natural calamities, such as fires or cyberattacks, shut down a plant, many ranchers are left with nowhere to take their livestock " 

According to the White House, as part of the plan, President Joe Biden's administration would contribute $1 billion in money from the American Rescue Plan, a bill passed into law last year, for the growth of independent processing capacity.

"It hits at their respect, dignity, and the family legacy that so many of them have carried for generations after generations," Biden said, stressing that the administration will strive to offer more possibilities for family farmers and ranchers as well as lower grocery store pricing.

At the meeting, Secretary of Agriculture Tom Vilsack and Attorney General Merrick Garland both stated their commitment to properly implementing federal competition regulations that protect ranchers, producers, and other growers from unfair and anticompetitive actions.

Food costs in the United States increased by 6.1% in November 2021, the greatest 12-month increase in nearly 13 years, with beef and poultry being the main drivers.

Likewise, the Labor Department said that the total consumer price index grew 6.8 percent in the 12 months ending in November, the quickest annual rate in over 40 years.

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