Concentration in the meat industry is getting increased attention from the federal government.
Concentration in the meat industry is getting increased attention from the federal government, which is looking at measures to level the playing field with both farmers and consumers.
The Wall Street Journal reportsthat the concentration situation, where less than half a dozen companies control 60% or more of the market for major animal proteins, has come under fire following results during the pandemic. Major meat processors recorded big profits while farmers and ranchers were squeezed by low prices.
Measures under consideration include furnishing USDA loans and grants to smaller meat processors, changing the rules by which large meat processors can contract with farmers, and requiring large processors to buy more product on the spot market.
The North American Meat Institute calls the proposals unnecessary and said they would make things worse for both farmers and consumers.
