By Andrea Shalal

WASHINGTON, (Reuters) – Four major meat-processing firms have more than tripled their net profits since the outbreak of the pandemic, according to White House economics advisors.

The financial statements of meat-processing firms, which hold 55% to 85% of the beef, pork, and poultry market, contradict the claim that higher transportation or labor costs caused rising prices, according advisers headed by Brian Deese, National Economic Council Director. This analysis was published by the White House on Friday.

Officials reviewed earnings statements starting in Tyson Foods Inc (NYSE:), the largest U.S. chicken producer by revenue; Brazil-based JBS SA (OTC): The world’s largest meatpacker. Brazilian beef producer Marfrig Global Foods SA, which controls most of National Beef Packing Company. Seaboard Corp RIC.

These statements show a combined 120% increase in gross profit since the pandemic, and a 500% growth in net income. The companies announced $1 billion worth of stock buybacks and dividends. This is in addition to the $3 billion that they have paid shareholders since the pandemic.

The North American Meat Institute, a trade group, accused the White House “cherry-picking data.”

President Julie Anna Potts stated in a statement that “It’s no coincidence that this blog post appears the same day the Consumer Price Index releases showing that gas and energy prices have risen nearly 60% over the past twelve months, which is almost 10 times the rate inflation for food.”

The profit margins, or the amount of spread that companies make over and above their cost, have also increased dramatically. This is contrary to the idea that companies just pass on higher labor and supply prices.

The analysis stated that “if rising input costs drove rising meat prices then those profit margins wouldn’t be nearly flat” because the higher prices would offset the higher costs.

The rise in prices of meat was responsible for 25% increase in food prices at home for November. This is a major driver behind the recent surge in inflation.

Tyson increased the price of beef “so much — by more than 35% — that they made record profits while actually selling less beef than before,” the advisers wrote.

The companies did not respond immediately to our requests for comment.

Republicans have harrassed the White House over inflation. It is now trying to reduce rising prices through clearing supply chain bottlenecks and combating what it considers uncompetitive business practices of big corporations, who are reporting huge profit increases even though consumers are suffering.

Friday’s blog, published after November consumer price increases showed their largest annual increase since 1982, reflects the frustration of White House officials over continued meat price rises. This issue was raised in September.