Reuters – The chairman of the U.S. House of Representatives subcommittee on economic and consumer policy has sent a letter to major U.S. meat-processing companies, seeking information on rising prices and profits.
The companies included Tyson Foods, JBS Foods, National Beef and Seaboard. Representative Raja Krishnamoorthi, the chairman of the panel, asked for information about price increases on beef, pork and chicken products, the panel said.
“While some companies may claim that the high prices feeding these outsized profits are explained by higher input costs, earnings data tell a different story,” Krishnamoorthi said.
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“I am deeply concerned that meat-processing conglomerates may have engaged in predatory business practices, at the expense of consumers, during the pandemic,” he added.
Krishnamoorthi has asked for information and documents from each company by Feb. 8, explaining their decision to increase prices of their products despite rising profits. He also asked for an explanation on what the companies planned to do to lower prices in the coming year.
He said that net profit margins for the four biggest meat-packing companies have shot up over 300 per cent since the start of the coronavirus outbreak and accused the firms of increasing their profits “at the expense of the American families.”
