Administration Plans to Bolster Competition in Meat Processing Sector

USAgNet - 01/04/2022

President Biden held a roundtable Monday to hear from meat and poultry producers on how to create a more fair and resilient supply chain.

The goal is to give the consumer a better selection of beef, chicken, or pork at a lower price while minimizing disruptions to the supply chain.

The Biden administration says today’s farmers and ranchers have less negotiating power, resulting in fewer profits, and more expensive products for consumers.

50 years ago, beef ranchers got over 60 cents on every dollar spent by consumers on beef, compared to the 39 cents made today. Hog farmers would earn anywhere from 40-60 cents on each dollar spent 50 years ago, which is down to 19 cents today.

Supply chain disruptions like cyber-attacks and Covid-19 have had a significant impact on the meat processing industry over the past two years.

The Biden administration plans to dedicate $1 billion in American Rescue Plan funding towards expansion of independent processing capacity.

The plan aims to do this by bolstering financial support to independent processors who want to expand, lower fees for overtime and holiday inspections, creating more access to industry knowledge to help smaller independent processors, and issue new "Product of USA" labeling rules to help consumers identify US-grown meat and poultry.

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