President meets with farmers, ranchers to discuss ways to reduce food prices.
The Biden administration is offering $1 billion in aid to independent meat and poultry producers, saying the industry is dominated by a handful of big companies to the detriment of consumers and businesses.
"Over the last few decades, we've seen too many industries become dominated by a handful of large companies that control most of the business and most of the opportunities -- raising prices and decreasing options for American families, while also squeezing out small businesses and entrepreneurs. The meat and poultry processing sector is a textbook example."
-the White House said in a statement on Monday.
President Joe Biden met Monday afternoon to discuss the industry, with leaders including Scott Blubaugh, president of the Oklahoma Farmers Union, and Brent Johnson, president of the Iowa Farm Bureau Federation.
Today, we're here to talk about strengthening competition that will bring down costs"
-Biden said in opening comments.
Meat prices -- along with other food prices -- have soared in recent months, leading Republicans to point fingers at the White House for stoking inflation. The Biden administration has countered that its agenda, including the still-being-debated Build Back Better plan, will reduce inflation.
In September, the administration raised concerns about rising prices for meat and touted its effort to scrutinize meat processors amid industry consolidation.
At the time, $Tyson Foods(TSN.US)$ issued a statement citing a U.S. Department of Agriculture report about drivers of food-sector inflation, "none of which are related to industry consolidation or scale."
In a statement on Monday, Julie Anna Potts, president, and CEO of the North American Meat Institute said the Biden administration is ignoring labor shortages in its approach to the industry.
The administration wants the American people to believe that the meat and poultry industry is unique and not experiencing the same problems causing inflation across the economy, like increased input costs, increased energy costs, labor shortages, and transportation challenges. Consumers know better."
-she added.
-Robert Schroeder