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The government headed by President Joe Biden reported, in the first hours of this Monday, that it plans to face the increase in the prices of meat and poultry, through a $ 1 billion dollar set aside for smaller growers.
The federal administration released its action plan to diversify and strengthen the meat production supply chain ahead of a meeting between President Biden with independent farmers and ranchers, who seek a solution to the high market rates.
The action plan promoted by the federal government includes four central strategies to create a more competitive, fair and resistant meat and poultry sector, with better profits for producers and more options and affordable prices for consumers.
The aid plan includes the following:
1. Provide $ 275 million for loans and other support “to companies at rates and conditions that increase access to affordable capital in the long term.”
2. $ 100 million will be earmarked to train America’s meat and poultry workforce.
3. $ 100 million will be used to fund the infrastructure that independent producers need to “move their product through the supply chain.”
4. $ 100 million to help “small and very small processing plants meet unprecedented demand” by reducing inspection costs.
In October last year, the US Bureau of Labor Statistics reported that food is more expensive, largely due to rising beef prices. Last year, the consumer price index for food increased 0.9%, while the index for beef increased 17.6%
Before these measures were taken, for months the White House pointed out that a group of producers have raised the prices of meat and poultry, a situation that has contributed to inflation in recent months.
“When dominant intermediaries control much of the supply chain, they can increase their own profits at the expense of both farmers, who earn less, and consumers, who pay more, “said the official government statement.
“Most farmers now have little or no buyer choice for their product and little bargaining leverage, reducing their share of every dollar spent on food.”
In addition, the White House explained that in recent decades, there have been too many industries dominated by a handful of large companies that control most of the business and most of the opportunities, increasing prices and decreasing the options for families, by time that hit small businesses and entrepreneurs.
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