Biden wants more competition in the American meat industry

The US government unveiled on Monday a plan to increase competition in the meat industry, dominated by a handful of large companies (two of them with Brazilian capital) which, according to the White House, are used to raise prices to consumers and reduce the income of farmers.

“I have said it before and I repeat it. Capitalism without competition is exploitation. This is what we see in meat and poultry, “said US President Joe Biden, launching a virtual roundtable on the subject.

“Small farmers and independent ranchers are forced to cease their activity, some of them after generations and generations,” in the face of giants, he added.

Biden He also lashed out at the “massive profits” of these big companies.

In a statement, the White House considered the sector a “typical case” of the ravages of too much concentration and recalls that, in terms of packaging and processing of beef, the four largest companies in the United States control 85% of the market.

These are Cargill (United States), Tyson (United States), JBS (Brazil) and National Beef (a subsidiary of the Brazilian company Marfrig).

The Biden administration will disburse $ 1 billion to support the development of “stand-alone” meat packing and processing infrastructure, primarily for slaughter.

The government also wants to “strengthen the rules that protect farmers, ranchers and consumers,” which it estimates were relaxed during the presidency of its predecessor, Republican Donald Trump.

For example, the White House promises to review the rules for the attribution of the label “Product of the United States” (Product of USA), which can currently be used for meat that has only been processed in the United States but comes from animals raised abroad. .

The US Chamber of Commerce has criticized the White House announcement.

“As with many other products, the reasons for the increase in meat prices are higher demand, supply chain problems due to COVID-19 and higher production costs,” writes Neil Bradley, vice president of the organization. , it’s a statement.

“It is quite clear that the administration is trying to use the price hike to justify its program, that is, to reverse decades of political consensus around competition policy to make way for regulation guided by the principle that the government would know more than anyone else. “, the Mint.

Faced with high inflation that undermines Biden’s popularity among public opinion, the government has decided to strengthen competition between companies in various sectors. Before the meat industry, he already pointed to hydrocarbons, criticizing large companies for not making fuel cheaper despite the fall in the price of oil.