U.S. senators propose FTC investigate beef price fixing -Breaking
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© Reuters. FILEPHOTO: An employee at First Capitol Meat Process plant cuts beef meat into large pieces amid supply chain challenges caused by Coronavirus Disease (COVID-19), a pandemic in Corydon Indiana U.S.A. January 31WASHINGTON, (Reuters) – U.S. Tuesday’s bipartisan resolution was introduced by Senators Elizabeth Warren, Mike Rounds and the U.S. Trade Commission. It asked for an investigation into possible price fixing in beef businesses.
This is just the latest attempt by politicians to make meat producers accountable for rising food prices. Critics blame in part U.S. beef production that was controlled solely by four large corporations.
Senators invoked 1914 law that allows Congress or the president to direct FTC investigators to look into antitrust allegations. Since the 1920s, this rule has been ineffective.
The U.S. Department of Agriculture’s most recent statistics show that approximately 85% of U.S. cattle were slaughtered by four firms. These meats were then made into beef roasts, steaks, and other cut of meat for the consumer in 2018.
Cargill and GE are the big four processors. Tyson Foods Inc (NYSE:), Brazil-based JBS SA National Beef Packing Co.
The companies have not yet responded to our requests for comment. However, they previously stated that price increases are caused by consolidation.
Already, the Department of Justice is investigating price fixing in chicken processing.
Angela Huffman was co-founder and vice President of Farm Action’s policy and advocacy section. The resolution was endorsed by her.
We are thrilled that bipartisan teams have reached back into history to find this tool. It is not an easy path to change, but it’s possible.
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