The House Subcommittee on Economic and Consumer Policy has addressed a letter to four major meat processors requesting specific information on pricing and policy.
Rep. Raja Krishnamoorthi, Chairman of the Committee stated, "While some companies may claim that the high price feeding, these outsize profits are explained by higher input costs, earnings start to tell a different story". He added, "I am deeply concerned that meat processing conglomerates may have engaged in predatory business practices at the expense of consumers during the pandemic".
It is a matter of record that beef prices have risen by 18 percent, pork by 15 percent and chicken by 10 percent. With respect to chicken, there is a far wider range of producers in direct competition compared to red meat. Chicken and turkey integrators have experienced escalation in the cost of ingredients, labor, transport and other inputs. The Committee should distinguish between wholesale and retail prices as supermarket chains have increased margins to cover escalation in cost of labor and the entire supply chain has been impacted by additional cost to suppress COVID.