US government investigates abuse of power in meat sector

The US government has launched an online portal to allow farmers and ranchers to anonymously report unfair and anti-competitive practices by major players in the meatpacking industry.

The website, called Farmers Fairness, is a joint initiative involving the Department of Agriculture (USDA) and Department of Justice (DOJ), which will allow farmers to submit complaints about potential abuse of market power by livestock and poultry processors.

It is a move that demonstrates there is increasing concern globally about the impact on farmers of corporate consolidation in the agricultural supply chain.

See also: US delegation visit marks step towards UK lamb exports

As in the UK, the US meatpacking industry is dominated by a small number of players.

The US version of the NFU, which is running a Fairness for Farmers campaign, reports that the four largest meatpackers control 54% of US poultry processing, 65% of US pork processing and 85% of beef packing.

This has led president Joe Biden to express concern about a lack of meaningful competition within the US meat market, with a handful of companies effectively dictating wholesale and retail prices.

Share of value

Farmers’ share of the value of their agricultural products has decreased, and poultry farmers, pig (hog) farmers, cattle ranchers and other agricultural workers are struggling to make sustainable incomes.

For example, USDA figures highlight that 50 years ago ranchers received more than 60 cents of every dollar a consumer spent on beef , compared with approximately 39 cents today.

Pig producers have fared worse over the past 50 years, as their share of the consumer dollar has fallen from between 40 to 60 cents 50 years ago, to approximately 19 cents today.

The news that the US government is taking steps to ensure there is fairness within the supply chain, comes as the UK government is consulting on the future of the Groceries Code Adjudicator (GCA).

The GCA has been running since 2013 and monitors the relationship between the largest retailers and their suppliers, with suppliers able to report any potential breaches of the Groceries Supply Code of Practice (Gscop) through a confidential reporting platform.