WASHINGTON (Pakistan Point News / Sputnik - 26th January, 2022) US Congressman Raja Krishnamoorthi, chairman of the Subcommittee on Economic and Consumer Policy, sent letters on Tuesday to four major meat processing companies, requesting information and records about the decision to increase prices on their products despite drastic increases to their net income profits.
"Four large conglomerates - Tyson Foods, JBS Foods, National Beef, and Seaboard - control between 55 percent to 85 percent of the beef, pork and poultry markets," Krishnamoorthi said in letters to each of the four companies. "All four companies appear to have used their market position to significantly increase prices and profits during the pandemic at consumers' expense."
Krishnamoorthi pointed out that beef prices in the United States have increased by nearly 19 percent, pork prices by 15 percent and poultry prices by nearly 10 percent.
The Congressman said the net income of all four meat processing companies increased by 500 percent compared to their pre-coronavirus pandemic numbers, adding that shareholders of the companies have been rewarded with billions of Dollars spent on new dividends and stuck buybacks.
These meat processing companies may claim the increase in prices are due to higher input costs but their net profit margins does not support that, Krishnamoorthi said.
The Congressman is asking the four companies to provide all records and information about their decisions to increase prices by February 8.
