Packer

Beef Industry Chaos: Tight Supplies, Strong Consumer Demand and Political Interference

Thu, 13 Nov 2025 19:42:19 GMT

The current state of the cattle market and beef industry has been described as chaotic. “There’s chaos in cattle,” as Chip Flory, AgriTalk host, put it.

The industry turmoil follows recent statements made by President Donald Trump regarding the need to lower beef prices as well as his request for the Department of Justice to immediately begin an investigation into meatpackers for driving up the price of beef.

Derrell Peel, Extension livestock marketing specialist from Oklahoma State University, affirms these are unique times, emphasizing while political factors have always indirectly influenced agriculture, it’s unprecedented for the cattle and beef markets to be at the center of direct political debate.

On a recent AgriTalk segment, Peel points out the inherent biological and production constraints of the cattle industry — particularly the fixed timeline to raise cattle — make quick fixes impossible. Both Flory and Peel stress that no political policy can shorten the cattle production process; any effective supply response requires patience and long-term adjustment.

Packers Under Fire

The concept of industry consolidation and foreign packer ownership has long drawn scrutiny with frequent government investigations. Peel says highly concentrated industries such as beef packing have been targets for skepticism and regulatory attention for over a century, to the point suspicion of packers is almost “a cultural thing” within segments of the industry.

He characterizes the latest call as another attempt to target convenient scapegoats rather than addressing deeper systemic realities of supply and demand.

“The reason we have the industry structure we do is because the economies of size and cost efficiencies are such a powerful economic force,” Peels explains.

He confirms researchers have long studied market power, and while concentration does have a small negative price impact for producers, the efficiency and cost-savings from large-scale firms more than compensate. These benefits, he says, keep cattle prices higher for producers and beef prices lower for consumers than they would be with a less efficient structure.

Dissecting the economics of margin markets Peels explains why price changes in different parts of the beef supply chain — cow-calf, feeders, packers and retailers — don’t move in lockstep. He uses a “bungee cord” analogy to illustrate the complex, dynamic and time-lagged interactions linking cattle prices at the farm with retail beef prices.

“All cattle prices and beef prices are ultimately connected, but they’re not connected with a stick or a chain,” Peel summarizes.” They’re connected with a bungee cord. There’s just an enormous amount of dynamics in this thing.”

Regarding the foreign ownership debate, Peel says there is no evidence foreign ownership alters packer behavior within the U.S. marketplace. He emphasizes foreign firms have made large investments in U.S. facilities and continue to operate them by the same market logic that would govern domestic ownership.

He also points out it is unclear who else would be in a position to make such significant investments if these foreign companies were not involved. This pragmatic view suggests the ownership issue might be less important than is commonly believed, at least concerning everyday operations and market outcomes.

A Lot Hinges on Rebuilding the Cow Herd

In his latest article, “ All Bets are Off ,” Peel says: “The latest edition in the torrent of recent political attentions directed at the cattle and beef industry includes allegations of market manipulation against the beef packing industry. Beef packers are the one segment that has been most negatively impacted in the current market, incurring huge losses due to poor margins and limited cattle supplies.”

(Meat Institute)

Peel reports packers have been losing enormous amounts of money for about the past 18 to 24 months. According to the Meat Institute, packer margins slipped into the red in September 2024. Through the week ending Oct. 4, 2025, packer margins were a negative $126.50 per head, up slightly from a year earlier at a negative $125.65 per head, according to Sterling Profit Tracker. The outlook for the year is a negative $165.96 per head packer margin.

“There’s just simply not enough cattle for them to operate at cost efficient capacities,” Peel explains.

This negative trend was anticipated — the reduced supply of cattle has made it difficult for packing plants to function at cost-efficient capacities, leading to the accumulation of operating losses. Peel points out the combination of low unit margins and insufficient cattle supplies challenges the economic viability of packers, further illustrating the complexity of the current environment.

This decline in inventory is not the result of a single factor but is driven by several years of drought and other market pressures. It is clear high beef and cattle prices are a result of these tight supplies and, according to Peel, these high prices are likely to persist for several years. The industry simply cannot turn around production levels quickly, and it will take time — a matter of years, not months — for conditions to normalize.

“Using logic that only works in the office of a politician, packers are supposedly wielding unacceptable market power while paying record high cattle prices and artificially raising beef prices … but not enough to avoid losing a couple hundred dollars on every animal they process — certainly many millions of dollars,” Peel says. “If beef packers had any significant ability to exercise market power, I am certain that we would not have record high cattle prices and packers would not be losing money.”

Peel suggests the federal government attacks on beef packers are aided and supported by a vocal minority of the cattle industry and a few sympathetic politicians who view packers as a perennial villain and always worthy of attack anytime the opportunity is presented.

“The timing of such attacks this time is particularly puzzling as dismantling the packing industry would certainly jeopardize current record high cattle prices and the best economic returns most producers have ever enjoyed,” Peels says. “I guess some cowboys just can’t stand prosperity.”

R-CALF CEO Bill Bullard says the cattle market is fundamentally broken citing years of an inverse relationship between falling cattle prices and increasing retail beef prices when the only ingredient in beef is cattle. Read more about his perspective.

Patience not Politics

Beef and cattle prices, Peel notes, are historically high, a result of industry-wide low cattle inventory. Rebuilding the nation’s cow herd will be a long, slow process, keeping prices elevated for an extended period. And Peel says there is no definitive evidence producers are saving heifers to start the rebuilding process.

“2025 may prove to be technically the cyclical low, but 2026 is going to be barely bigger, if it is, and no growth in 2026 and probably none in 2027 ... it’s 2028 into 2029 before that turns into increased beef production,” Peel predicts.

He summarizes neither regulatory nor political action will can speed up the rebuilding process. It will take years of concerted effort, market healing and stability before the industry can expect a meaningful rebound in herd numbers and production — a reality that requires patience across the industry.

“There is absolutely nothing anybody can do to make beef prices go down, or cattle prices, other than maybe tear up the industry completely,” Peels says. “And if we tear up the industry, it’ll make cattle prices go down, but it won’t make beef prices go down. It’ll make beef prices go even higher for consumers and the only way to fix this is to give the industry time to rebuild, and that’s going to take two to four years if we ever get started.”

He says a majority of cattle producers understand the beef industry is extremely complex and all segments are critical and essential.

“Though the outcome of current political actions is uncertain, the potential for long-term harm to the industry is substantial,” Peel says. “Anytime politics trumps economics, the strong supply and demand fundamentals that have determined the outlook for the industry to this point become irrelevant. Expectations for prices and production going forward are now completely clouded…therefore… all bets are off.”

Your Next Read: You Be The Judge: The Big Bad Beef Packers Are On Trial

Are We Seeing Signs of Herd Rebuilding?

Mon, 15 Sep 2025 13:46:26 GMT

The U.S. beef cow inventory has reached its lowest point since 1962, marking what appears to be the bottom of the current cattle cycle. Tight supply is driving the strong pricing environment beef producers are enjoying today.

“For cow-calf producers right now, things are as good as they’ve probably ever been,” says Troy Rowan, University of Tennessee assistant professor. “Even though things are really good, producers are conscientious and vigilant about potential challenges,” Rowan summarizes.

Agreeing with Rowan, South Dakota cattleman Ken Odde adds while profits are currently strong, inflation quickly erodes economic gains. He stresses the importance of risk management and diversification.

Early Signs of Herd Rebuilding?

This is the million-dollar question: Are there encouraging signs of expansion?

“The beef industry is not currently in herd expansion mode, with producers hesitant to retain heifers due to high costs and economic uncertainties,” says Dave Weaber, Terrain senior animal protein analyst.

In Drovers State of Industry Report to be released the week of Sept. 15, we breakdown the July USDA cattle inventory and cattle on feed reports. While the USDA reports showed the smallest U.S. herd in history and continuing tightening numbers on feed, analysts predict producers have not experienced the highest cattle prices, yet.

“Our national herd size has the industry at an interesting point,” Rowan says. “Prices are at all-time highs, inputs are reasonable and more cow-calf enterprises are profitable than ever. When the industrywide rebuild will happen remains up in the air, but producers are keeping in mind that the high-flying industry right now is not going to stick around forever. They’re starting to adopt new technologies, leveling up their crossbreeding programs and expand opportunities for non-cattle related income on their ranches.”

Weaber adds producers need to be intentional about herd expansion, understanding the financial implications of adding new cattle.

Beef-on-Dairy Fills the Beef Supply Gap

“The current dynamics of supply is going to be a challenge,” says Jarrod Gillig, Cargill senior vice president, managing director for beef.

Gillig summarizes the cattle industry is experiencing a critical period of transition. He doesn’t expect the cow herd to return to previous peak levels of 32 million head. Instead, he predicts the gap in supply will be filled by beef-on-dairy calves.

Nick Hardcastle, Cargill senior director of meat grading and technical specialist, explains how the beef-on-dairy calves are an upgrade to the traditional Holstein steer and the positive impact they are making on beef supply.

“Beef-on-dairy is more desirable because it helped overcome several Holstein difficulties,” he says. “Improvements include red meat yield — more meat to a consumer — as well as improved acceptance in branded programs.”

Hardcastle says the beef-on-dairy cattle are filling the supply gap by filling pens in the Plains states where feeders are needed, and they are widely accepted by feeders and packers.

Defining Future Beef Producer Success

Odde says the beef industry is not just surviving but positioning itself for significant transformation.

“Producers who remain flexible, technologically savvy and strategic in their approach will be best positioned to thrive in this changing environment,” he says.

Weaber agrees saying successful producers will be those who can adapt, manage costs effectively and align themselves with evolving market trends.

“Don’t let cost get away from you,” Weaber warns, emphasizing that “being a low-cost, high-productivity producer means you get to make money seven, eight or nine years of the cycle.”

He stresses the importance of understanding financial implications, particularly during market transitions.

“If we’re not working on the business, we can’t work in the business,” Weaber adds, summarizing his philosophy regarding producers’ need to adopt more strategic, data-driven approaches.

The State of the Beef Industry Report includes input from nearly 500 beef producers. The annual report provides information to help producers when making decisions. Click here to download the full report.

Your Next Read: 47% of Beef Producers Plan to Increase Herd Numbers

Why Aren't High Beef Prices Causing Sticker Shock With Consumers?

Wed, 23 Jul 2025 19:37:01 GMT

Gound beef prices across the U.S. continue to reach new highs. Retail prices for ground beef hit its highest level in history in June climbing above $6 per pound, while steaks were up 8% at $11.49 per pound.

(Bureau of Labor Statistics )

“The record high retail beef price reported by the most recent Consumer Price Index (CPI) has prompted a lot of calls about why prices are record high and whether there is any relief in sight,” says David Anderson, Texas A&M Extension economist for livestock and food product marketing. “While we often write about the great cattle prices for producers who are selling, there is a flip side, and that is consumers who are buying beef.”

Anderson explains reduced slaughter and beef production, especially in the second quarter of the year, cut supplies just as grilling season heated up for seasonal beef demand. The combination led to a spike in wholesale prices and retail beef prices.

Don Close, Terrain senior animal protein analyst, says: “What we have seen so far is consumers have been incredibly loyal to protein collectively, but they have been especially loyal to beef, and beef is actually continuing to gain market there, even at the current prices at the expense of the other protein.”

Wages Are Keeping Pace With Beef Prices

Close says when he correlates the monthly all fresh beef price to hourly wages he found they are in lock step.

“Yes, beef prices have escalated, but beef prices have not risen any faster than the improvement in overall hourly wage,” he explains. “So from the consumer’s perspective, their share of their paycheck committed to beef is essentially the same as it’s been on a comparative basis for years.”

(Don Close, Terrain )

Other contributing factors to beef demand include consumers’ craze for protein and the impact of GLP-1 diets on protein consumption.

Scott Varilek, Kooima Kooima Varilek, says: “I think beef demand has just proven time and time again — hey, consumers want it. It’s a great healthy protein, and I think it’s got a lot of good traction here over the last year of being a good quality source of food.”

High Quality Attracts Consumer Spending

Plus, with 82% to 84% of the beef produced grading Choice or better, the high quality of beef is pushing demand.

“I don’t see any weakness really in the consumers or their spending habits,” says Mike Minor, professional ag marketing. “We actually are eating more Prime meat today than Choice for the first time ever. So, people like their expensive meat still.”

How Long Will High Cattle and Beef Prices Last?

Last week USDA reported average fed cash cattle prices hit the second-highest level in history at $237.78, up 57¢ from the average the prior week.

The high cattle and beef prices continue to be driven by tight cattle numbers, the Mexican boarder closing due to New World screwworm and looming import challenges.

Yet, Close says the role of strong demand can’t be ignored and is likely to continue.

“I think it’s certainly through 2026 and really more realistic somewhere deep into 2027,” he adds.

Anderson explains normal seasonal production and demand would suggest prices falling from recent highs. Evidence from the wholesale beef market over the last couple of weeks indicates lower prices.

“Seasonal price patterns would suggest that there is a chance for a little bit of relief from record high beef prices,” Anderson says. “But, only if we compare to the peak price this summer. Wholesale beef prices are already declining.”

He adds there is a time lag from lower wholesale prices showing up at retail, but lower wholesale prices combined with normal seasonality of various cut prices should lead to the expectation of falling prices in the coming months.

“But, it’s not likely that prices will decline below year-ago levels,” Anderson emphasizes.

Inventory Reports Release on July 25

Close says more will be known about supply levels after the USDA Cattle on Feed and Cattle Inventory reports on Friday.

“While market analysts expect lower placements, marketings and cattle in feedyards than a year ago, the really interesting number will be the number of heifers on feed on July 1,” Anderson summarizes. “The heifers on feed will provide some insight into heifer retention. Also, look for placements in Texas due to the ban on Mexican feeder cattle. The lack of spayed heifers coming from Mexico is important in evaluating the number of heifers on feed.”

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New Price-fixing Suit Aimed at Big 4 Beef Packers

Tue, 17 Oct 2023 21:53:32 GMT

America’s Big 4 packing companies are the target of new price-fixing allegations from a group of small food distributors. Those distributors filed suit Oct. 9 in the U.S. District Court for the Northern District of Illinois, accusing the packers fixed prices for years.

The plaintiffs allege that beginning at least by January 1, 2015, Cargill, JBS USA, Tyson Foods, and National Beef Packing Co., “exploited their market power in this highly concentrated market by conspiring to limit the supply of beef sold to purchasers in the U.S. wholesale market, including Plaintiffs, which resulted in higher prices paid by Plaintiffs.”

The distributors said the alleged scheme caused financial harm at least through the end of 2021.

“As a result, Plaintiffs paid higher prices for beef than they otherwise would have paid in a competitive market,” states the lawsuit, seeking relief under the Sherman Antitrust Act.

Allegations by the four small distributors are similar to other suits filed against the Big 4 that have led to settlements in the tens of millions of dollars and led to scrutiny by the Department of Justice and Congress.

The lawsuit cites beef plant production data and price fluctuations, as well as testimony from two inside witnesses with knowledge of company agreements to help each other manage output.

The distributors are seeking a jury trial for unspecified damages and a permanent injunction.

In August, antitrust claims against the Big 4 by a group of ranchers was dismissed. A federal judge in Minnesota dismissed the claims filed by a putative class of cattle ranchers in a long-running case that alleged an industry-wide scheme to fix prices.

Tyson Foods to Deploy Driverless Trucks in Arkansas

Thu, 07 Sep 2023 13:26:47 GMT

Tyson Foods, Inc., is teaming up with Gatik AI, Inc., in a multi-year collaboration to deploy autonomous, “self-driving” refrigerated box trucks to bolster Tyson routes in Northwest Arkansas. Operating 18 hours a day, trucks will deliver Tyson, Jimmy Dean and BallPark products, among others, to the company’s distribution and storage facilities in the Rogers and Springdale, Ark., areas.

“The deployment will introduce Gatik trucks equipped with commercial-grade autonomous technology to the Tyson supply chain, operating on predetermined short-haul, repeated routes to support fast and efficient product flow from plant to storage facilities,” Tyson said in a release . “In a nationwide truck driver shortage, these autonomous trucks are an innovative and safe way to add resources that will allow the company to elevate drivers to other transportation positions in the Tyson business, while ensuring continuous supply chain reliability.”

Beginning this week, the collaboration includes multiple trucks with the potential for expansion at other Tyson locations in the future. A safety driver will initially be present in the cab to monitor the autonomous system and take command of operating the truck if required.

“The trucks are equipped with a 26-foot, temperature-controlled box purpose-built to transport refrigerated and frozen goods quickly and safely and multiple sensor modalities that are custom-designed for fail-safe short-haul B2B operations,” Tyson said.

The partnership is expected to provide the company with increased asset utilization within its short-haul logistics network, assist with inventory objectives, all while supporting a transition to a more responsive, high-frequency approach to goods movement. Additionally, autonomous trucks operate with increased efficiency and sustainability, leading to reduced emissions and enhanced fuel economy.

“At Tyson Foods, we are innovating and using automation throughout our business, including in transportation,” said Patrick Simmons, vice president of transportation for Tyson Foods. “This partnership allows us to strategically place our drivers where they are needed most while still reliably and safely transporting protein from the plant to distribution centers.”

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Walmart Beef Plant Tied to Investment in Sustainable Beef LLC

Tue, 13 Jun 2023 20:20:28 GMT

Walmart revealed Tuesday it plans to open a $257 million beef processing and packaging facility in Olathe, Kan. The plant is designed to package and distribute products from the new Sustainable Beef LLC plant that is under construction in North Platte, Neb.

Walmart announced in August of last year that it would take a minority stake in Sustainable Beef, a rancher-owned startup expected to be operational late next year. Sustainable Beef expects to process 1,500 head per day and up to 100,000 per year when fully operational.

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Tyson Foods Plant Closure Raises Antitrust Concerns Among U.S. Farmers and Experts

Fri, 24 Mar 2023 15:10:08 GMT

Tyson Foods Inc gave its chicken suppliers two months’ notice of its plan to shut a Virginia processing plant in May, raising concerns among farmers and legal experts about the company’s compliance with antitrust regulations requiring it to give 90 days’ notice before ending a contract.

The planned closure of the plant has left dozens of Virginia chicken growers scrambling to find new buyers in a region with few other options. It could also expose Tyson to fines under the century-old Packers and Stockyards Act (PSA), the U.S. antitrust law requiring the minimum advance warning, according to Peter Carstensen, a professor of law emeritus at the University of Wisconsin-Madison Law School who previously served in the antitrust division at the U.S. Department of Justice.

Tyson told Reuters the company is not canceling any farmers’ contracts and instead has committed to paying the growers for the full-term of their remaining contracts, keeping in compliance with federal regulations.

Antitrust issues, particularly in meatpacking, have been a priority for the U.S. Department of Agriculture (USDA) under President Joe Biden, who in 2021 directed federal agencies to tackle consolidation. Four companies, including Tyson, control 55% to 85% of the beef, pork, and chicken markets.

Tyson alerted Virginia farmers by phone on March 13 and later by mail that it will shut its Glen Allen plant on May 12, according to three poultry farmers who supply the plant. The company said there are 55 farmers with 73 contracts who supply the plant with chickens raised for meat.

Tyson owns chickens it slaughters and pays the farmers to raise them. The company hatches baby birds and trucks them to farmers. The farmers then raise the birds for about six weeks, until they reach the size to be slaughtered and are trucked to the processing plant.

Tyson spokesperson Alicia Buffer confirmed farmers received notice last week of the May 12 closing, and said Tyson intends to stop supplying them with chicks after March 28.

She said that instead of canceling their contracts, Tyson is offering farmers a voluntary buyout package, or the option to retain them and be paid through their duration.

The three farmers interviewed by Reuters have between three and 10 years left on their contracts.

Farmers told Reuters they felt pressure to accept the buyout option because they were not sure how the contract could remain in force after the plant is shut and the chicks stop coming.

Roger Reynolds, a farmer in Crewe, Virginia, said retaining his July 2012 contract with Tyson is not a viable option, in part because it would prevent him from selling to another poultry company if one entered the region.

Another farmer with a contract to supply the plant, who asked not to be named, said they may eventually have to sell their third-generation farm as the buyout offer would not cover long-term expenses like property taxes.

Carstensen, of the University of Wisconsin-Madison Law School, said it was unclear if Tyson’s approach would absolve it of its requirement to provide farmers 90 days’ notice before ending a purchase contract, because closing the plant means it won’t be processing chickens there anymore.

PSA violations can carry a $29,270 fine, according to the USDA website, and Carstensen said fines could apply for each contract.

The USDA, which enforces the PSA, told Reuters it is “closely monitoring” Tyson’s planned plant closure.

‘WE’RE DONE’

Under normal circumstances, Tyson supplies farmers with chicks, while farmers assume the costs of land and chicken houses.

Documents reviewed by Reuters show the company’s proposed buyout package offers payment to farmers based on their average payment per flock in 2022.

They also show that farmers opting to retain existing contracts instead of accepting the buyout would have to meet Tyson’s contractual requirements for their facilities even after the company stops providing chicks.

Tyson said those growers would have to perform “routine and preventive maintenance” to meet contract requirements and called the options generous.

Farmers must choose between the options by the end of March, according to the document.

On Monday, about 20 Tyson farmers and local government officials gathered in a fire station in Burkeville, Virginia, and raised concerns about Tyson’s short timeline for closure of the plant, attendees said.

Taylor Lee, a farmer in DeWitt, Virginia, who attended the meeting, said he built two new chicken houses in 2017 and raised about 400,000 birds annually for Tyson, and is unclear what will happen to his investment.

“When we’re done growing chickens (for Tyson), we’re done, unless somebody else steps in,” Lee said.

The nearest chicken plants to Glen Allen are 100 to 150 miles away, outside the ideal radius of 60 miles, said Hobey Bauhan, Virginia Poultry Federation president. Longer distances hike transportation costs and health risks to chickens.

(Reporting by Leah Douglas in Washington and Tom Polansek in Chicago; editing by Richard Valdmanis and Nick Zieminski)

Tyson Foods Mandating COVID-19 Vaccinations for U.S. Employees

Thu, 22 Sep 2022 00:55:28 GMT

Tyson Foods announced Tuesday that it is requiring its team members in the U.S. to be fully vaccinated against COVID-19 by Oct. 1, 2021, and all other team members are required to be fully vaccinated by Nov. 1, 2021, subject to continued discussions with locations represented by unions, a company release says.

“Getting vaccinated against COVID-19 is the single most effective thing we can do to protect our team members, their families and their communities,” said Dr. Claudia Coplein, chief medical officer, Tyson Foods, in the release. “With rapidly rising COVID-19 case counts of contagious, dangerous variants leading to increasing rates of severe illness and hospitalization among the U.S. unvaccinated population, this is the right time to take the next step to ensure a fully vaccinated workforce.”

This requirement makes the company the largest U.S. food company to require vaccinations against the coronavirus for its entire workforce. It says that almost 50% of its U.S. workforce has been vaccinated and infection rates among its team members remain low.

The company has hosted more than 100 vaccination events for its workers since February and more than 56,000 U.S. team members have been vaccinated so far, the release says. Additional onsite vaccination events will be scheduled, and the company will continue to collaborate with local health departments and healthcare providers to make the vaccine more accessible.

Tyson Foods also notes in the release that it will provide $200 to its frontline team members, subject to ongoing discussions with locations represented by unions, which it says is an expansion of Tyson Foods’ existing policy to compensate workers for up to four hours of regular pay if they are vaccinated outside of their normal shift or through an external source.

Exceptions to the mandate will be available for workers who seek medical or religious accommodation, it says.

Union Pushback

The United Food and Commercial Workers (UFCW), which is the union for 250,000 meatpacking and food processing workers and includes 24,000 Tyson meatpacking workers across the country, says it has “serious concerns” about the vaccination mandate.

“UFCW is proud to say that we have high vaccination rates among our unionized food workers across the country, and as a result, we have helped reduce COVID-19 infection rates in many of our industries, including meatpacking. While we support and encourage workers getting vaccinated against the COVID-19 virus, and have actively encouraged our members to do so, it is concerning that Tyson is implementing this mandate before the FDA has fully approved the vaccine,” says UFCW international president Marc Perrone.

“As the union for Tyson meatpacking workers, UFCW has made clear that this vaccine mandate must be negotiated so that these workers have a voice in the new policy. UFCW will be meeting with Tyson in the coming weeks to discuss this vaccine mandate and to ensure that the rights of these workers are protected, and this policy is fairly implemented. We believe the FDA must provide full approval of the vaccines and help address some of the questions and concerns that workers have. Additionally, employers should provide paid time off so that their essential workers can receive the vaccine without having to sacrifice their pay and can rest as needed while their body adjusts to the vaccine and strengthens their immune system to fight off the virus,” Perrone’s statement continues.

A memo from Tyson Foods president and CEO Donnie King to team members can be read here .

To date, Tyson Foods says it has spent more than $700 million related to COVID-19 mitigation, including buying personal protective equipment and temperature scanners, installing protective barriers and providing onsite testing and vaccinations. It also partnered with an independent medical provider to bring medical services onsite, hired an additional 200 nurses and its first chief medical officer, the release says. It has also spent time educating team members, in many languages, about the benefits of the COVID-19 vaccination.

Biden: Double Crop Because 'We Can't Take Any Chances'

Thu, 12 May 2022 02:54:31 GMT

Farm policy took center stage on Wednesday in Kankakee, Ill. President Biden visited OC Farms, owned by Jeff and Eugenia O’Connor.

During the visit, Biden—along with USDA Secretary Tom Vilsack—announced the administration’s latest efforts to alleviate rising costs on American’s pocketbooks through additional agricultural funding.

Fertilizer Makes Headlines

Purdue University-CME Group’s April Ag Economy Barometer showed producers experienced a challenge in sourcing fertilizer for 2022. The survey found 34% of producers reported trouble purchasing inputs, which is up 7% from surveys conducted in March.

To help mitigate costs, USDA says it will double-down on investments in domestic fertilizer production by increasing funding to $500 million. A portion of the funds will also be used to help farmers adopt precision agriculture methods that will reduce fertilizer use.

Inaccessible Grain Opens Door fo U.S. Exports

According to Biden, Ukraine has 20 million tons of stored grain awaiting export to various countries such as Africa, their biggest importer. He says Putin’s war, not sanctions, are impacting harvests and disrupting the movement of food by land and sea to nations in need.

“We’re going to see what actions we can take to increase fertilizer supplies globally,” says Biden. “We’re also going to see how we can work together to prevent export restrictions on food and agricultural inputs and bring more global production to market which will stabilize prices and bring more certainty to our farmers and keep people from dying of hunger.”

Double Crop to Drop Inflated Food Costs

In late April, USDA introduced a proposal to Congress , pleading for additional funding to offset costs resulting from the war in Ukraine. Part of the proposed funding included $250 million to aid U.S. producers to increase crop volumes through double cropping.

During the visit on Wednesday, Biden shared USDA will raise from $250 million to $500 million, and open the double cropping insurance floor to a total of 1,935 counties—up 681 counties from the initial announcement.

USDA says double cropping will boost production without substituting crops or cultivating new land. While the department recognizes there are risks associated with the practice, Biden says his team has a plan to overcome those risks.

“The growing season for wheat is short and if the weather conditions aren’t ideal or there are other disruptions, then the timing of everything is thrown off,” says Biden. “But it’s a risk we need to take and that’s why my administration is looking at how to extend crop insurance coverage to give financial security to farmers.”

Following the announcement, Vilsack boarded a plane to Germany for the G7 summit where, he and fellow agriculturalists will devise a plan to overcome food loses due to Russia’s invasion of Ukraine.

“Exploitation” in the Marketplace

50 years ago, ranchers received 60¢ on the dollar for harvested beef, according to Biden. He says today, they get 39¢. Similarly, he says hogs yielded 40¢-to-60¢ on the dollar for farmers 50-years ago but pens out to “about” 19¢ today, which reflects a market “distorted” by lack of competition.

“Capitalism without competition is not capitalism,” says Biden. “It’s exploitation.”

In January, the Biden administration allocated $1 billion in American Rescue Funds to expand independent meat processing capacity as part of a broader initiative to break up what it calls a meat and poultry processor monopoly. Biden says the plan will provide producers a chance “to sue companies they contract with over unfair, discriminatory or deceptive practices,” while reworking “Product of USA” label requirements.

Additionally, various Senators have introduced a bill to amend the Agricultural Marketing Act of 1946 to include a cattle contract library by way of Cattle Price Discovery and Transparency Ac t.

Gas Prices Continue to Soar

Biden recently announced the sale of year-round E15 , which he said on Wednesday has decreased pump costs by 10¢ . However, the AAA reports regular gasoline price averages were at $4.40 on Wednesday, up 29¢ from the average reported a month ago.

Biden maintains the price hike can be attributed to Russia’s invasion of Ukraine but says—along with Vilsack—the expanded E15 supply along with the USDA’s $100 million in ethanol infrastructure will ultimately bring prices down in the long run.

More on ag policy:

> 30% of Farmers Still Having Trouble Finding Essential Crop Inputs for This Year
> White House Asks Congress for Additional $33 Billion in Aid for Ukraine
> Everything You Need to Know About the Proposed $500M to Ag in Biden’s Ukraine Aid Program
> Biden Plan Directs $1 Billion To Impact Meat & Poultry Processing, Strengthen P&SA, Add New Labeling Rules
> E15 Summer Ban Suspended, USDA Commits $700M To Biofuels Producers
> DOE Announces Plan to Replenish Tapped Oil Reserves

Second Mistrial In Poultry Price-Fixing Case

Thu, 31 Mar 2022 19:37:42 GMT

The U.S. Justice Department has tried and failed twice in its efforts to prove price-fixing among chicken industry executives.

A federal judge in Denver has declared a second mistrial after a jury deadlocked over whether 10 chicken company executives had conspired to fix prices. The first trial ended in December 2021.

U.S. District Judge Philip Brimmer ended the case on March 29 after jurors said they were unable to reach a verdict after four days of deliberations. The 10 executives had worked for Pilgrim’s Pride Corp., Perdue Farms LLC, Claxton Poultry, Tyson Foods Inc., Koch Foods Inc., Case Farms and George’s Inc.

The DOJ alleged the executives engaged “…in a continuing combination and conspiracy to suppress and eliminate competition by rigging bids and fixing prices and other price-related terms for broiler chicken products sold in the United States.”

Should the government seek a third trial as they have indicated, Judge Brimmer is demanding an explanation from the head of the DOJ’s Antitrust Division, Assistant Attorney General Jonathan Kanter.

“I am going to order that the head of the antitrust division come in here within the next week and look me in the eye and explain to me why the government is going to retry this case,” Brimmer said Tuesday according to a Bloomberg report.

“If the government thinks that the 10 defendants and their attorneys and my staff and another group of jurors should spend six weeks retrying this case after the government has failed in two attempts to convict even one defendant, then certainly Mr. Kanter has the time to come to Denver and explain to me why the Department of Justice thinks that that is an appropriate thing to do,” Brimmer said.

The DOJ had alleged an eight-year conspiracy to fix prices, but the two mistrials suggest the difficulty in government efforts to police competition in food markets. The men had faced up to 10 years in prison and $1 million fines if convicted.

Jurors in both trials heard from Robert Bryant, a longtime Pilgrim’s Pride employee who’s currently on leave. As the government’s star witness, Bryant testified an industry-wide agreement existed to share price and bid information to inflate profits or limit losses, depending on the market.

Undermining Bryant’s testimony was the fact he appeared under grant of immunity from prosecution as he admitted that he had lied to the FBI “multiple times” on matters unrelated to the price-fixing probe.

Another prosecution witness was Tyson sales manager Carl Pepper, who told jurors about coordinating prices among the competitors.

Lawyers for the defendants argued that both men had lied to avoid prison. The defense argued that it’s not illegal simply to share pricing information and that the government can’t prove that the defendants all agreed to participate in a single, overarching conspiracy.

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