Increasing meat prices, according to the White House press secretary, are due to higher profitability in the meat sector.
As of December 2021, consumer prices were rising at a 7% yearly rate, resulting in higher grocery costs and tighter budgets for many regular Americans.
Instead of blaming more federal spending or loose monetary policy, Democrats have criticized supermarkets and meat producers for pursuing higher profits.
Thanks to a softball from Bloomberg’s Jordan Fabian, Jen Psaki reiterates that meat and poultry companies are the reason why we’ve seen such a skyrocketing rise in the price of beef, chicken, and pork at the grocery store. pic.twitter.com/pp8U9JoSQc— Curtis Houck (@CurtisHouck) February 8, 2022
Psaki made the same claims again on Tuesday afternoon.
Psaki noted at her news conference that four major businesses control a large portion of the beef, pig, and poultry markets. The data shows that meat costs have risen, while firms have recently hit new highs in earnings.
Ranchers received more than $0.60 for every dollar spent on cattle by a family 50 years ago, according to past precedence. She went on to say that they make about $0.39 today.
Hog farmers made between $0.40 and $0.60 for every dollar spent fifty years ago. It is currently at $0.19, and huge firms continue to make significant profits.
That is categorically not how it should work, according to Psaki. Capitalism without competition is exploitation, as the president has mentioned several times. We are also concerned about the lack of competition faced by these enterprises.
Senator Elizabeth Warren (D-MA), who asked Assistant Attorney General Jonathan Kanter to investigate poultry firms, echoed Psaki’s remarks.
Corporate profits are surging, but families and ranchers are getting squeezed by a meatpacking industry dominated by a few giants. We need strong antitrust enforcement to help bring down prices and fight inflation. https://t.co/t5nb2PLWzn— Elizabeth Warren (@ewarren) February 9, 2022
Tyson acknowledged recent price rises as inflationary pressures, according to reports. Furthermore, the corporation is dealing with labor shortages, which have been a subject of dispute for businesses around the country.
Prices for consumables have risen dramatically in recent years, and this is not restricted to meat. Other food companies, including Nestlé, the world’s largest food and beverage corporation, announced price hikes to keep up with inflation.