The Biden administration on Thursday (May 26th) proposed a rule requiring meatpackers to be more transparent in their dealings with contract farmers in an effort to enhance competition in the highly consolidated industry.
Farmers and consumer groups have argued for decades that consolidation in the beef, pork and chicken sectors, where four companies control between 55% and 85% of the market, suppresses farmer pay and results in higher prices for shoppers.
The administration pledged in January to address these concerns with proposed rules to enhance enforcement of the Packers and Stockyards Act, a century-old law meant to protect farmers from unfair market practices.
The rule announced on Thursday would require poultry companies to be more transparent with contract chicken growers, who receive their chicks, feed and other inputs from the companies and are paid per pound of chicken they raise for slaughter.
USDA is also opening an inquiry into whether aspects of chicken farmer contracting “are so unfair that they should be banned or otherwise regulated,” said an agency press release.
Two additional rules will come this summer and fall, said a USDA official.
“The funding and new rule we’re announcing today ultimately will help us give farmers and ranchers a fair shake, strengthen supply chains, and
White-Egg Layers Rise in UK
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