Biden Allocates $1 Billion to Curb Meat Price Hikes and Support Farms

Inflation Response and Checks on Large Corporations Initiated on First Workday of New Year

U.S. President Joe Biden is disembarking from the presidential aircraft to return to the White House on the 3rd. [Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] U.S. President Joe Biden has decided to provide $1 billion in support to farms and dairies to address rising meat prices on the first working day of the new year. This is interpreted as a strong determination to confront large corporations in response to the destabilization of his support base due to soaring inflation in food prices.

On the 3rd (local time), the White House announced that President Biden will provide $1 billion to farms and dairies to resolve inflation caused by the monopoly of large meat processing companies and to maintain a stable supply chain.

President Biden is scheduled to meet virtually with farmers and ranchers at the White House on the same day to directly announce measures to prevent monopolies by meat processing companies.

The White House cited the meat and poultry processing sector as a prime example, stating that a few large corporations dominate the industry, raising prices and pressuring small and medium-sized businesses.

The White House pointed out that the four major meatpacking companies control 85% of the beef market, 54% of poultry, and 70% of pork, while being responsible for supply chain bottlenecks.

According to the federal government, beef prices rose 21% through November last year, and prices for meat, poultry, fish, and eggs increased by 13%. Food prices also rose by 6.4%.

With U.S. consumer prices rising 6.8% in November last year, marking the highest level in 39 years, President Biden’s support base has been significantly shaken.

In November last year, President Biden also instructed the Federal Trade Commission (FTC) to investigate possible collusion in response to rising gasoline prices.

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