President Joe Biden announced Monday that his administration plans to spend $1 billion to help independent meat processors.
During a virtual roundtable with members of the meat industry, Biden discussed his plan to improve competition and resilience in the meat and poultry sectors.
?Without meaningful competition, farmers and ranchers don?t get to choose who they sell to,? said Biden. ?To put it another way, our farmers and ranchers have to pay whatever these four big companies say they have to pay. That?s only half of it. These companies can use their position as middlemen to overcharge grocery stores and ultimately families.?
Biden says the $1 billion for independent meat processors will come from the American Rescue Plan.
?To bring in more competition, dignity and more farmers, ranchers and customers, we?re going to invest in new and innovative small businesses and meat processors ? the life blood of our economy,? said Biden. ?When we do this, we?ll give farmers and ranchers more options beyond giant processing conglomerates.?
Biden says 50 years ago, ranchers got over 60 cents of every dollar a consumer spent on beef, compared to about 39 cents today. Similarly, hog farmers got 40 to 60 cents on each dollar spent 50 years ago, down to about 19 cents today.
?Strengthening competition is good for all of us,? said Biden. ?Farmers and ranchers deserve a fair shake. American families facing high prices at grocery stores deserve a fair price to put food on the table. Rural communities would see more good jobs when there?s more competition. And our economy as a whole would make our food supply chains more resilient.?
USDA Secretary Tom Vilsack explained that the administration is also planning to strengthen rules that protect livestock producers.
?We are strengthening our Packers and Stockyards enforcement effort by leveling the playing field for producers and processors,? said Vilsack. ?We?re also working on a voluntary label program called ?Product of the USA? to allow consumers to know exactly where their consuming dollars are being spent. We think this is going to better inform consumers at making choices.?
President Biden?s announcement comes as he meets virtually with farmers and ranchers from across the country.
