concentration

On earnings calls last week, major food brands bragged about their ability to keep raising prices. Soda and snack giant PepsiCo told investors that it raised prices 16 percent last quarter, bringing in 18 percent more profit. Nestle announced a 10 percent price hike and Unilever said its food brands cost 13 percent more. In all these cases, higher prices helped food giants increase profits even as their sales decreased. (No paywall)

Five independent processors will receive grants totaling $59 million to expand local meat processing capacity, Agriculture Secretary Tom Vilsack said on Tuesday. The grants are part of a $1 billion initiative by the administration to strengthen the food supply chain and introduce more competition into the meat processing sector.

In the space of a generation, U.S. hog production has transformed, even if the Midwest, with Iowa foremost, is still the leader, said a new USDA report. There were half as many hog farms in the country in 2017 as there were in 1997, and the largest farms, often specialized operations, raised 93 percent of the pigs.

A band of senators from the Midwest and northern Plains, with the best chance in years to inject transparency into the consolidated cattle market, pressed on Tuesday for a federal mandate for meatpackers to buy more cattle for cash, rather than through obscure formulas. "We need some sunlight," said Montana Sen. Jon Tester.

Grocery prices are climbing at their fastest pace since 2008, with beef, pork and poultry leading the way — up nearly 13 percent since last November, said the government's new inflation report. The White House pinned the blame for surging meat prices on meatpackers "taking advantage of their market power to raise prices while increasing their own profit margins."

Three months ago, Agriculture Secretary Tom Vilsack said the USDA would commit $500 million to expand meat and poultry processing capacity and create a more competitive livestock market. "I believe it is going to leverage literally billions of dollars in investment from investors and local governments," said Vilsack at a meat locker plant in Council Bluffs, Iowa.

With four companies dominating the meat industry, Congress and federal regulators must intervene to assure that livestock farmers get a fair price from processors or “if need be, bust them up,” the president of the National Farmers Union said at a Senate hearing on Wednesday. It was the …

Siding with farm activists, President Biden said "Big Ag is is putting a squeeze on farmers" and signed an executive order telling the USDA to rejuvenate the livestock, seed, fertilizer and retail food markets. The executive order on competition, reaching from the FDA to the Pentagon, called on the FTC to enact right-to-repair rules so farmers can fix their own tractors rather than take them to the dealership when software malfunctions.

The USDA will propose three rules to give cattle, hog and poultry producers more leverage in dealing with meat processors in an increasingly concentrated industry, said Agriculture Secretary Tom Vilsack. The initiatives would make it easier for a producer to prove unfair treatment by a processor and would write a new regulation on use of so-called tournament systems by processors to determine pay for poultry farmers.

The Biden administration earmarked $4 billion on Tuesday to strengthen the U.S. food system, including an expansion of local and regional food processing capacity. Aiming to increase competition, Agriculture Secretary Tom Vilsack said he hoped to see "new entries" in the highly concentrated processing sector.

As an antidote for the dwindling cash market, the largest U.S. cattle group circulated a plan on Tuesday for meatpackers to voluntarily buy cattle on the spot market to assure fair and open prices, with the threat of mandatory disclosure if the systems fails. The so-called 75 percent plan by the National Cattlemen's Beef Association stood as an alternative to bills in Congress to require packers to buy as many as half of their slaughter cattle for cash.

The milk cooperative Dairy Farmers of America has entered into an agreement to buy most of milk processor Dean Foods’ assets as part of the latter’s bankruptcy proceedings. If approved, the $433 million deal will make DFA both the largest milk supplier and the largest milk processor in the country.

The Department of Justice intervened Friday in a landmark price-fixing suit against the country’s biggest poultry companies, possibly signaling that its own grand jury investigation into the chicken sector could result in criminal indictments. The DOJ asked the U.S. District Court for the Northern District of Illinois to stop discovery in the class-action lawsuit brought by food distributor Maplevale Farm, saying in its motion that “a limited stay is needed to protect the grand jury’s investigation.”