Tyson Foods Rejects Meat Industry Conclusions Drawn by White House -- Commodity Comment

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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