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Biden's $1 Billion Bet To Make Beef Cheaper But When Will Prices Drop?
The White House on Monday offered a solution to surging meat prices: an action plan that includes investing $1 billion of American Rescue Plan funds to boost competition in the industry and promises to ramp up regulation and enforcement of anticompetition laws. But some experts say the move is unlikely to offer relief at the grocery store right away.
The Biden Administration's investment, which includes grants, loans, money for training, new labeling rules and ways for farmers to report anti-competitive concerns, is designed to spark competition in the meat processing industry, which is dominated by a small number of massive companies. The White House argues that the concentration in the sector is chiefly responsible for higher prices for consumers. More competition will lead to lower prices, according to the administration.
"The big meat processors, by virtue of little competition, have more market power to name their price," a senior White House official told CNN Business.
Skeptics say that the proposed solution may be too simplistic, and is unlikely to reduce prices — at least in the near term.
https://www.cnn.com/2022/01/04/business/meat-prices-inflation-biden/index.html
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