President Joe Biden expressed shock on Monday that the cost of ground beef was so high, blaming consolidation in the meat market among the top processors.
The president recalled a conversation he overheard between his wife, first lady Jill Biden, and a friend, while he was sitting in the kitchen at home.
“She was saying, ‘Do you realize it’s over 5 dollars for a pound of hamburger meat?!’ 5 dollars?” Biden recalled.
“Well this is partly, you know, the pound of beef today costs 5 bucks compared to less than 4 bucks before the pandemic,” the president continued.
The cost of ground beef spiked in June 2020 and then went back down, before rising quickly again in January 2021.
Cost of ground beef – Federal Reserve Economic Data
Biden spoke near the White House during a virtual meeting with farming and ranching advocates, blaming the top four biggest meat processors for controlling the high costs of beef. Tyson Foods, Cargill, National Beef, and JBS control 85 percent of the beef industry, according to recent data.
“I’ve said it before and I’ll say it again. Capitalism without competition isn’t capitalism, it’s exploitation,” Biden said.
Biden outlined a series of steps to increase competition for smaller meat producers by offering millions of dollars in more federal loan guarantees.
The president offered several modest proposals to help address the issue but did not detail any significant efforts to break up the existing consolidation of the meatpacking industry.
He tried to emphasize his empathy on the issue by noting he represented the chicken industry when he was the senator of Delaware.
“I come from the state of Delaware, everybody thinks the big industry is chemicals,” he said. “It’s chickens. Chickens. Boiler chickens.”
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