Biden Targets Meat Suppliers Like Never Before — The American Burger Could Disappear Forever

President Biden and his administration are labeling meat-makers as villains in the inflation debate, they are saying the industry has record profits even though consumers are suffering from very high prices at their local store.

The White House puts the blame on corporate greed and industry consolidation, but critics say the government is using meat producers as scapegoats for problems that were caused by the government itself.

WHITE HOUSE HIT BY BUILD BACK BETTER INFLATION TROUBLES

Jen Psaki, the White House press secretary, commented on the issue numerous times during recent briefings, she said it’s time to “crack down” on the high profits from the industry.

“The main meat processors net margins are over 300% and their gross profit margin is up 50%. That shouldn’t be the case,” Psaki stated. “That’s not entirely because of supply chain issues.”

Psaki added, up to 25% of the raise in grocery prices is due to meat purchases, blaming corporate avarice as the main cause.

“You could say it is corporate greed. Yes, Sure,” Psaki said. “You could call it increasing prices during a global pandemic.”

DEMOCRATS CAN’T HANDLE THE TRUTH

A blog post by Brian Deese, a White House National Economic Council Director, claimed that only four companies, JBS, Tyson, Seaboard, and Marfrig, control 55% to 85% of the meat market and that these companies are leveraging their power to increase prices and grow their profit margins.

“The real blame for inflation should be aimed at the government,” Moore said. “They should look in the mirror?”

“They are blaming the meat companies when Producer Price Index just showed we are at the greatest 12-month increase for wholesale prices in over 10 years,” Ortiz said.

Producer prices went up by 9.6 precent for the year ending in Nov., making it the fastest on record, according the Bureau of Labor Statistics. Some economists are saying that wholesale inflation is likely reaching its peak, but the most recent numbers passed predictions and were the highest in the 11-year history.

The President has not been able to contain consistently high and rising inflation, first saying that it was not permanent and that easing supply chain distress would help. The public is losing confidence in the Biden Administration even with repeated assurances that increasing prices would be transitory.

You can’t deny that meat prices are a factor. The cost of veal and beef is up by 20% year over year, chicken up nearly 9% and pork up 14%.

Sen. Elizabeth Warren tweeted, “Families are upset that meat prices have gone through the roof. Who is to blame? I am fighting for stronger antitrust enforcement to help decrease prices.”

The North American Meat Institute said the National Economic Council is ignorant on both the basic fundamentals of supply and demand and agricultural economics.

“Pork, poultry, and beef all have their own supply and demand market fundamentals,” Meat Institute President Julie Potts said in a statement. “The measurements used by the Economic Counsel misleadingly put these sectors together, and the council conveniently doesn’t include data on rising fuel costs, rising input costs, labor shortages, and supply chain difficulties that affect the meat price on the retail shelf.”

Potts said that the same four-firm concentration ratio has existed in the market for close to 30 years. “Why the sudden inflation?” she asked.

Author: Blake Ambrose