White House gives $1B to combat inflated meat prices in the US

19 Jan 2022

The U.S. White House announced in early January that it will contribute $1 billion in American Rescue Plan funding to independent meat processors in order to increase competition within the industry and lower protein prices. This plan includes $375 million in grants for new facility projects for small meatpackers, $275 million for loan assistance and $100 million to develop jobs with fair wages in rural areas.

“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 White House said in a statement.

White House gives $1B to combat inflated meat prices in the US
Image via Donald Giannatti on Unsplash

Currently, 85% of the beef market is controlled by four meatpacking companies; JBS USA Holdings and Tyson Foods alone are responsible for controlling 54% of the market. Poultry and pork are not much more democratic with the top four processing firms controlling 54% and 70% of the market respectively.

The monopolization of the protein industry has led to both increasing prices for producers and consumers, the White House said. “Fifty years ago, ranchers got over 60 cents of every dollar a consumer spent on beef, compared to about 39 cents today. Similarly, hog farmers got 40 to 60 cents on each dollar spent 50 years ago, down to about 19 cents today,” the government said in a statement. Not only are farmers’ wages shrinking, but the American public is experiencing the highest levels of inflation since 1982, which is dramatically affecting protein prices.

In November, overall food prices jumped a record 6.4% while meat, poultry, fish, eggs experienced an even steeper increase of 13%. Beef spiked extraordinarily with prices hiking 20% since a year prior, according to the Bureau of Labor Statistics. Data from the White House show meat and poultry prices are now the single largest contributor to the rising cost of food people consume at home.

While there is much support for this move to provide assistance to small meat producers, not all parties are in favor of government intervention. Industry group North American Meat Institute (NAMI) and Neil Bradley, the executive vice president and chief policy officer of the U.S. Chamber of Commerce took opposing views to this move, denouncing the infusion of cash as a misguided attempt to resolve the root of the inflation issue.

As part of this rescue funding, the White House also announced it will work with the Department of Justice and the Department of Agriculture to accelerate reporting of antitrust complaints. Last September, President Biden announced his plans to focus on the price-fixing accusations that have resulted in a multitude of lawsuits in recent years.

Read the Full Report Here

Related news

Animal-free dairy company raises $120M for commercialization

Animal-free dairy company raises $120M for commercialization

18 Jan 2022

Israeli animal-free dairy company Remilk raised $120 million in a Series B funding round led by Hanaco Ventures with participation from a number of other investors, including Impossible Foods backer CPT Capital, plant-based protein company Just, Yofix,...

Read more 
What do Europeans really want from plant-based foods?

What do Europeans really want from plant-based foods?

17 Jan 2022

Familiar ingredients, more product choice and lower prices are just some of the attributes European consumers are looking for in plant-based foods, according to the findings of a recent ProVeg consumer survey.

Read more 
PepsiCo creates potato chip vodka, sells out in hours

PepsiCo creates potato chip vodka, sells out in hours

17 Jan 2022

PepsiCo took another step into the alcohol category when it launched Lay’s Potato Vodka in December. However, this foray into alcohol did not last long as the trial product sold out in a matter of hours, according to a post by the company on Twitter.

Read more 
Indian multinational moves into plant-based burgers and nuggets

Indian multinational moves into plant-based burgers and nuggets

14 Jan 2022

ITC, one of India’s largest corporations, announced it is entering the plant-based protein space through its ITC Master Chef brand where it will launch burger patties and chicken nuggets made from alternative protein sources. The conglomerate’s food bu...

Read more 
Shoppers expect increases in grocery bills for 2022

Shoppers expect increases in grocery bills for 2022

13 Jan 2022

Eating at home in the U.S. just became 15% more expensive on an annual basis, according to a new study from KPMG. The survey noted that on average, the projected household food budgets will increase $79 per month to $611 as compared to 2021. Overall, t...

Read more 
France, Austria seek European-wide plant-based protein strategy

France, Austria seek European-wide plant-based protein strategy

12 Jan 2022

Agriculture ministers from European Union member states France and Austria are calling on the European Commission to focus on developing plant proteins as part of a strategy to promote sustainable food systems that combat current environmental and clim...

Read more 
Bonumose to manufacture tagatose sugar in North America

Bonumose to manufacture tagatose sugar in North America

11 Jan 2022

Following regulatory approval in both the U.S. and Canada, ingredient company Bonumose is on schedule to open its first commercial production facility to produce tagatose, a low-glycemic, rare sugar, in the spring of 2022.

Read more 
KFCs Beyond Fried Chicken is now available in the US

KFCs Beyond Fried Chicken is now available in the US

10 Jan 2022

Following two years of testing, fast-food chain KFC is bringing Beyond Fried Chicken to restaurants across the U.S. beginning on Jan. 10. This nationwide launch of fried chicken made with Beyond Meat plant protein will only be for a limited time, accor...

Read more 
Cell-based sushi get commercial contracts in U.S. grocery stores

Cell-based sushi get commercial contracts in U.S. grocery stores

8 Jan 2022

Wildtype, a California startup making cultivated sushi-grade salmon, has secured distribution agreements with Snowfox and Pokéworks in the U.S. Snowfox operates 1,230 grocery store sushi bars while Pokéworks is a chain with 65 fast-casual restaurants, ...

Read more 
Mondelez introduces Extra Stuf Oreo thins

Mondelez introduces Extra Stuf Oreo thins

7 Jan 2022

Milk’s favorite cooking is getting a facelift this year with a new Oreo Thins Extra Stuf line. Mondelez is debuting this permanent addition to the Oreo portfolio in January. The classic chocolate and cream cookie will have “nearly double the amount of ...

Read more