January 26
Just Food published an article stating that according to President Biden, the US meat industry is too concentrated, is hurting farmers and consumers, and is a notable factor in rising food prices in the country. The US government has set out plans for “a more competitive, fair, resilient meat and poultry sector, with better earnings for producers and more choices and affordable prices for consumers.” Senior Research Fellow Joseph Glauber points to a more complicated state of affairs. He spoke at length to Just Food stating, “The administration is dealing with high inflation rates and beef prices are currently running about 20% over year-ago levels. High retail prices for beef are coming at a time when cattle prices have not risen much – and in some cases have fallen – and have resulted in a widening farm-to-retail price spread and strong packer/processing margins. Several factors have caused the current situation in the industry. The plant shutdowns in early 2020 due to Covid outbreaks caused a sharp increase in retail prices because of the shortage in processed meat products and a sharp drop in producer prices because of the glut of cattle on the market that couldn’t be slaughtered. While the situation improved in the second half of 2020, labor shortages and Covid issues that have slowed line speeds continue to be a problem.