April 15, 2022

CEOs of four major US meatpacking companies to speak at Congressional hearing

David Scott, the US House Agriculture Committee Chairman said on Wednesday that the CEOs of major meatpackers Cargill, Tyson Foods, JBS, and National Beef Packing have agreed to appear at a Congressional hearing on cattle markets and price hikes for consumers, Reuters reported.

Scott said it is critical, necessary, and urgent that the CEOs of these firms provide their perspectives and get the whole picture of why prices have risen for consumers while falling for ranchers

He said they will assemble a panel of ranchers to hear what consolidation has done to their bottom lines and viability in the cattle industry in addition to the panel of CEOs.

Increased costs and profits for meatpacking firms have threatened to heighten Washington's scrutiny of the industry, which has been criticised by the Biden administration for a lack of competition.

Concerns that a small group of meatpackers could dictate the prices of beef, pork, and poultry in the country, adding to inflation pressures caused by rising labour and transportation costs, and COVID 19-related supply constraints, has prompted US President Joe Biden to announce a plan in January for new rules to boost competition and stop exploitation in the industry.

The chairman of the House of Representatives' subcommittee on economic and consumer affairs addressed a letter to major meat processing corporations in January 2022, asking for information on growing costs and profits.

-      Reuters