The Biden administration says the lack of competition in the meat and poultry sectors is hurting consumers, producers, and the economy.
President Biden says the current market system is distorted. “I’ve said it before and I’ll say it again, capitalism without competition isn’t capitalism, its exploitation,” he says. The Biden administration released their Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain on Monday.
He says processors – or the middlemen – currently control too much of the supply chain and producers have paid the price. “Fifty years ago, ranchers got over $0.60 for every dollar a family spent on beef, today they got about $0.39,” Biden says. “Fifty years ago hog farmers, got 40 to 50 cents for each dollar spent. Today it’s about $0.19.”
The administration has pledged $1 billion in American Rescue Plan funds toward expansion of processing capacity.
Ag Secretary Tom Vilsack says innovation is needed. “We’re going to need new business models,” he says.
