Biden administration plans tougher action to rein in meat prices

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WASHINGTON, Sept 8 (Reuters) – The Biden administration plans to take a tougher stance toward meatpacking companies it says are causing sticker shock at grocery stores.

Four companies control much of the U.S. meat processing market, and top aides to President Joe Biden blamed those companies for rising food prices in a blog on Wednesday.

As part of a set of initiatives, the administration will funnel $1.4 billion in COVID-19 pandemic stimulus money to small meat producers and workers, administration aides said in the blog post. They also promised action to “crack down on illegal price fixing.”

Four companies slaughtered about 85% of U.S. grain-fattened cattle that are made into steaks, beef roasts and other cuts of meat for consumers in 2018, according to the most recent data from the U.S. Department of Agriculture (USDA).

The big four processors in the U.S. beef sector are: Cargill (CARG.UL), a global commodity trader based in Minnesota; Tyson Foods Inc, the chicken producer that is the biggest U.S. meat company by sales; Brazil-based JBS SA, the world’s biggest meatpacker; and National Beef Packing Co, which is controlled by Brazilian beef producer Marfrig Global Foods SA.
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