U.S. meat producers profit margin up 300% during pandemic - Biden administration

 White House officials and economists continue to harass American MEAT producers. The four largest meat processors, using their bargaining power in the heavily consolidated US market to drive up meat prices and underpay farmers, have tripled their net profits since the start of the pandemic, White House economic advisers said.

Financial reports from meat processors, which control 55% to 85% of the beef, poultry and pork market, contradict claims that the rise in meat prices was driven by higher labor or transportation costs, National Economic Council DIRECTOR Brian Deese said in an analysis released today. on the White House website on Friday.

Officials reviewed earnings reports for Tyson Foods Inc., a chicken maker and the largest US meat company by sales; the Brazilian company JBS SA, the world's largest meat producer; Brazilian beef producer Marfrig Global Foods SA, which owns most of the National Beef Packing Company; and Seaboard Corp. RIC. Studies have shown that since the pandemic, these giants' gross profits have increased by 120 percent, while net profits have increased by 500 percent, analysis shows. These companies recently announced $1 billion in new dividends and share buybacks, on top of the more than $3 billion they have paid out to shareholders since the pandemic began.

The North American Meat Institute, a meat trade group, accused the White House of "collecting misleading" data. “It is no coincidence that this blog post comes on the same day that the consumer price index is published, showing that gas and energy prices have risen by almost 60% over the past 12 months, which is almost 10 times the rate of food inflation,” - Institute HEAD Julia Anna Potts said in a statement.

The increase in meat prices was 25% in November, which was a major driver of the surge in inflation observed in recent months.