Tyson Foods Rejects Meat Industry Conclusions Drawn by White House -- Commodity Comment
September 08 2021 - 8:01PM
Dow Jones News
Tyson Foods rejected comments by the secretary of agriculture
and the director of the National Economic Council about the
meat-processing industry during a White House press briefing on
Wednesday.
The Biden administration said it would take action against what
it calls a "concentration" in the meat-processing industry.
"Four large conglomerates overwhelmingly control meat supply
chains, driving down earnings for farmers while driving up prices
for consumers," the White House said in a statement.
The Biden administration said it would enforce "antitrust laws,
boost competition in meat-processing, and push back on pandemic
profiteering that is hurting consumers, farmers, and ranchers
across the country," the White House said.
Tyson responded by saying the "increase in beef prices (is) due
to unprecedented market conditions.
"Multiple, unprecedented market shocks, including a global
pandemic and severe weather conditions, led to an unexpected and
drastic drop in meat processors' abilities to operate at full
capacity.
"This led to an oversupply of live cattle and an undersupply of
beef, while demand for beef products was at an all-time high,"
Tyson said. "So, as a result, the price for cattle fell, while the
price for beef rose."
"Today, prices paid to cattle producers are rising," Tyson said.
"Labor shortages are also affecting the nation's pork and poultry
supply."
Write to Patrick Chu at patrick.chu@wsj.com
(END) Dow Jones Newswires
September 08, 2021 19:46 ET (23:46 GMT)
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