U.S. Senator Warren requires an investigation into rising poultry costs

CHICAGO, Nov 22 (Reuters) – U.S. Sen. Elizabeth Warren on Monday referred to as on the Justice Department to open a complete investigation into the impression of pricing and consolidating the poultry sector on customers and farmers.

The former Democratic presidential candidate additionally urged the division’s Antitrust Division to “suspiciously” overview any main mergers within the business, after Cargill Inc and Continental Grain mentioned in August they’d purchase hen firm Sanderson Farms for $ 4.53 billion.

Warren mentioned in a letter that customers are paying larger costs due to over-consolidation, pricing and “easy company greed.”

Chicken breast costs have risen 26% over the previous yr, in accordance with U.S. Department of Labor information, whereas turkey costs rose 24% in an annual survey by the American Farm Bureau Federation earlier than Thanksgiving.

The meat business has mentioned rising demand and labor shortages have raised costs. Four processors management 54% of the hen market, in comparison with 35% in 1986, in accordance with the Biden administration.

“The lack of competition in the poultry industry is allowing these massive companies to compress both U.S. consumers and farmers to feed record corporate profits and shareholder payments,” Warren mentioned.

The Department of Justice is investigating pricing amongst some hen producers. The Biden administration additionally guarantees a more durable stance towards 4 firms controlling the U.S. beef market as a strategy to management costs.

In February, hen firm Pilgrim’s Pride Corp pleaded responsible and settled federal costs it conspired to set costs and cross on prices to customers.

A month earlier, Tyson Foods Inc. settled a civil lawsuit by three teams of plaintiffs accusing it of illegally conspiring to inflate hen costs.

Warren requested the Justice Department to report earlier than Dec. 20 on how pricing and consolidation have helped increase poultry costs.

U.S. Republican Sen. Chuck Grassley beforehand expressed concern over the acquisition of Sanderson Farms, the third-largest U.S. hen producer.

from https://vegetablesnow.com/u-s-senator-warren-requires-an-investigation-into-rising-poultry-costs/

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