The Biden Administration unveiled its action plan to diversify and strengthen the meat-producing supply chain before a scheduled virtual meeting between President Biden and independent farmers and ranchers.
The White House has previously pointed to a few conglomerates for driving up meat and poultry prices, which have significantly contributed to wider inflation in recent months.
"When dominant middlemen control so much of the supply chain, they can increase their own profits at the expense of both farmers — who make less — and consumers — who pay more," the White House announced in a fact sheet stating its action plan on Monday. "Most farmers now have little or no choice of buyer for their product and little leverage to negotiate, causing their share of every dollar spent on food to decline."
WATCH: BRITISH COLONEL RICHARD KEMP REPORTING FROM GAZA
Appearing at a White House briefing, National Economic Council Director Brian Deese explained that growing prices for meat products — poultry, beef and pork — drive half of the food price increases consumers are experiencing at grocery stores. Deese stressed that four companies control the majority of meat supply chains, with those companies seeing record or near-record profits throughout the coronavirus pandemic. Those companies are JBS, Tyson Foods, Cargill Meat Solutions Corp., and National Beef Packing Co.
TRUMP READY TO DEBATE BIDEN 'ANYWHERE, ANYTIME, ANYPLACE,' BUT WILL IT HAPPEN?
"When you see that level of consolidation and the increase in prices, it raises a concern about pandemic profiteering, about companies that are driving price increases in a way that hurts consumers who are going to the grocery store and also isn't benefiting the actual producers, the farmers, and the ranchers that are growing the product," Deese told reporters.
WATCH: NO CLUE WHY THEY ARE PROTESTING: "I WISH I WAS MORE EDUCATED"
The Biden Administration is earmarking $1 billion from the American Rescue Plan, a bill signed into law last year, specifically to expand independent meat processing capacity.
That contains $375 million in grants for independent meat producers, $275 million in further financing available for processors, $100 million to manage inspection costs for smaller processing plants, and $100 million in training for workers in the meat and poultry industry.
CRITICS SLAM BIDEN'S ATTEMPT TO RELATE PERSONAL TRAGEDY TO POLICE OFFICER DEATHS
The Administration declared new efforts to guarantee transparency in cattle markets and to guarantee there are reasonable levels of competition in the industry so that it is not controlled by only a few giant conglomerates.
Biden officials have been focused on meat and poultry prices for months as they look for ways to manage inflation. Food prices have risen by more than 6 percent compared to last year, with beef and poultry among the most significant contributors.
Discover alternative ideas that will make you think
Engage in mind bending debate
Earn points, rise in rank, have fun
