Summary
The brief largely attributes the price increase of certain animal-based food products in the United States to the lack of competition among meat producers, such as Tyson, Smithfield, and JBS. The brief points out that 55% to 85% of the processing market for products derived from cows, pigs, and chickens is controlled by four firms, with large amounts of consolidation in each sector over the last forty-five years. To underscore the primary role of consolidation in driving up prices, the brief points out that processors are not paying more to the farmers and suppliers of the animal-derived products, but are charging retailers more and reporting record-high profits. To address this situation, the brief states that the Biden-Harris Administration is taking steps to address price-fixing, such as investigating the chicken-processing industry and increasing transparency of what processors pay and charge for their products. Additionally, the administration plans to provide relief for small businesses (such as a $700 million assistance package to make relief payments to workers in the industry that incurred pandemic-related expenses) and grants to establish new processors in the industry.