US House panel questions major meatpackers about rising prices

Raja Krishnamoorthi, the chairman of the US House of Representatives subcommittee on economic and consumer policy, sent a letter to major US meatpackers — including Tyson Foods, JBS Foods, National Beef and Seaboard — to question about rising prices of beef, pork and chicken products, Reuters reported.

Krishnamoorthi said these companies may claim that increased prices are due to higher input costs; however, their earnings data suggest otherwise.

The letter requests the companies for information and documents to be submitted by February 8 to clarify their reasoning to raise prices despite higher profits, as well as what the companies plan to do to decrease prices over the coming year.

Krishnamoorthi said the net profit margins for the four biggest meatpacking companies have increased to over 300% since the beginning of the COVID-19 outbreak. He also accused these companies of increasing profits at the expense of US consumers.

Industry group The North American Meat Institute that represents meatpackers said rising product prices are due to worker shortages, supply chain issues and higher consumer demand.

The association said the subcommittee is requesting confidential business information about pricing.

-      Reuters