Kanishka Sharma

WASHINGTON (Reuters] – The Chief Executives of U.S. Meatpackers Cargill. Tyson Foods (NYSE:), JBS & National Beef Packing agreed to be witnesses at a Congressional hearing on cattle markets, price hikes for consumers and prices. House Agriculture Committee chairman David Scott announced Wednesday.

Scott stated in a statement that “It’s very important, vital and urgent that we hear from these CEOs and get an accurate picture of the reasons why prices have gone down for ranchers and up for consumers.”

He said, “In addition to the panel of CEOs we will be convening an audience of ranchers to discuss what consolidation has done to their bottomlines as well as viability in the beef sector.”

Washington has been focusing on the U.S. meatpacking sector in an increased way. The Biden administration criticizes the lack of competition.

The U.S. president Joe Biden presented a January plan to establish new rules for the industry to boost competition and prevent “exploitation”. This came amid fears that some meatpackers could impose their will on prices. Inflation pressures are caused by increased transportation costs as well as COVID-19-related supply limitations.

In January the Chairman of the House of Representatives subcommittee economic and consumer policies sent a letter asking for information about rising profits and prices to the major U.S. meat processing businesses.