The Joe Biden administration has announced that it will dedicate $1 billion in funding this year and issue new rules to create a fairer, more competitive and more resilient meat and poultry supply chain.
The move reflects concerns that the US meat market is controlled by a handful of meat and poultry giants.
According to the US government, America over-relies on just a handful of meat processors, which leaves the food supply chain vulnerable.
“When Covid-19 or other disasters such as fires or cyberattacks shutter a plant, many ranchers have no other place to take their animals,” said a statement published on The White House’s website.
US government analysis has found that just four companies control 85% of the beef market, 54% of the poultry market and about 70% of the pork market.
The government’s action plan includes four core strategies, which will aim to achieve better earnings for producers and more choice and affordable prices for consumers.
“When dominant middlemen control so much of the supply chain, they can increase their own profits at the expense of both farmers — who make less — and consumers — who pay more,” said the White House statement.
“Most farmers now have little or no choice of buyer for their product and little leverage to negotiate, causing their share of every dollar spent on food to decline.”
© FoodBev Media Ltd 2023
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