US White House Cracks Down on Food Price Inflation: "Major Meat Companies Profiting Excessively Despite COVID-19"

White House: "Rising Household Grocery Costs Due to Meat Price Increases... Will Crack Down on Collusion"

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] The U.S. government has announced strict crackdowns on major American meat distributors, accusing them of profiteering even during the COVID-19 pandemic. Amid growing concerns over inflation in the U.S., the government appears to be taking measures to control food prices at the dining table.

According to major foreign media on the 8th (local time), the White House mentioned four companies dominating the U.S. meat distribution market in a blog post, pointing out that these companies are causing food price increases.

The four companies mentioned by the White House are Cargill, Tyson Foods, JBS, and National Beef Packing (NBP). According to the U.S. Department of Agriculture, these four companies slaughtered and distributed 85% of the meat consumed in the U.S. as of 2018.

The White House noted that half of the increase in U.S. household grocery bills since December last year is due to rising prices of meat such as beef and pork. It also pointed out that after government stimulus measures, meat consumption increased, during which these four processing companies took excessive profits.

Bharat Ramamurti, Deputy Director of the White House National Economic Council (NEC), said, "The government was frustrated to see large meat companies raise prices after receiving support to help meat companies struggling due to COVID-19," adding, "Large companies are profiteering during the COVID-19 situation, and the government is concerned about this."

The White House announced it will invest $1.4 billion to support small and medium-sized meat processors and take measures to eradicate illegal price-fixing practices.

With the midterm elections approaching next year, prices have emerged as the most urgent issue for the Joe Biden administration.

The U.S. Consumer Price Index (CPI) increase rate for July was 5.4%. The price increase rates for beef and pork were 6.5% and 7.8%, respectively, exceeding the average. Prices for poultry such as chicken and duck rose by 5.3%. Last year’s poultry price increase rate was the highest since 2004, and the pork and beef price increase rates were the highest since 2014.

The Department of Agriculture and the Department of Justice are reportedly investigating allegations of chicken price-fixing. Deputy Director Ramamurti stated, "The long-term goal is to bring down meat prices."

Congress is also preparing measures to strengthen crackdowns on the meat industry. The White House welcomed bipartisan legislation aimed at stabilizing meat prices.

Mark Dopp, Chief Operating Officer (COO) of the North American Meat Institute (NAMI), a U.S. meat industry group, expressed dissatisfaction with the White House’s strong crackdown policy, calling it "inflammatory remarks that ignore how supply and demand affect the market." He emphasized, "U.S. inflation is due to widespread labor shortages," and "the meat industry is no exception."

This content was produced with the assistance of AI translation services.