Ag Secretary Vilsack tells Brownfield arguments that the meat processing industry’s higher prices are tied to inflation and labor shortages don’t explain record profits.
“These processors had record profits, record dividends, record stock buybacks,” he says. “It’s a little inconsistent with that this is caused by something other than making a pretty good return on this.”
Sarah Little with the North American Meat Institute tells Brownfield packer concentration has been nearly the same for 30 years and recent beef price increases are more closely tied to inflation.
The Meat Institute says none of the proposals brought forth in last week’s White House report will alleviate consumer price increases and a recent USDA Economic Research Services report on food prices did not identify industry structure as a price driver but also pointed to inflation as a major factor in overall food costs with high feed costs, increased demand, and changes in the supply chain specifically driving beef and dairy prices.
