U.S. Sen. Charles Schumer visited a Tops Friendly Markets store in Walworth on June 15 to promote legislation he says would increase competition in the meat industry, support farmers and help lower grocery prices for consumers.
Schumer, D-N.Y., highlighted the Family Grocery and Farmer Relief Act, which he introduced in March. The proposal targets consolidation in the meatpacking industry, where Schumer said a handful of companies control much of the nation’s beef, pork and chicken processing.
Schumer: Industry consolidation drives higher prices
According to Schumer, four companies — Tyson Foods, JBS, Cargill and National Beef — control about 85% of the U.S. beef market, 67% of the pork market and 60% of the chicken market.
“Corporate giants dominate the meat market and set prices sky-high for families, all while squeezing profits from farmers by eliminating competition, and it needs to end,” Schumer said. “This bill is centered around making groceries more affordable, making farmers more profitable, and putting the needs of working middle-class people ahead of the interests of powerful corporations.”
Schumer cited data from the Urban Institute showing grocery costs have increased significantly in Central and Western New York in recent years.
According to the analysis, average monthly grocery costs in New York’s 24th Congressional District rose from $710 in 2019 to $1,080. In New York’s 25th Congressional District, which includes Monroe County and part of Ontario County, average monthly grocery costs increased from $770 to $1,160 during the same period.
What the bill would do
If enacted, the legislation would require the largest meatpacking companies to focus on a single line of business rather than operating beef, pork and chicken divisions simultaneously.
The bill would also provide financial and technical assistance to farmers’ cooperatives and small businesses seeking to acquire, operate or expand meatpacking facilities, with the goal of creating more local supply chains and increasing competition.
Meat industry group opposes proposal
The Meat Institute, a trade association representing much of the U.S. meat industry, opposes the legislation.
When the bill was introduced in March, Meat Institute President and CEO Julie Anna Potts criticized the proposal, arguing it would increase costs and disrupt the industry.
“This proposal is absurd,” Potts said. “If the senator is trying to make meat and poultry more affordable for consumers, this is the wrong approach. It will have the opposite effect.”
Potts compared the proposal to requiring an automaker to manufacture only one type of vehicle, calling such a mandate “unthinkable in a free market.”
Reporter Marcia Greenwood primarily covers the grocery business and consumer-focused grocery news, as well as retail development, openings and closings. Send story tips to mgreenwo@rocheste.gannett.com. Follow her on X @MarciaGreenwood.
This article originally appeared on Rochester Democrat and Chronicle: Schumer pushes bill to lower grocery prices during stop at Wayne County Tops
Reporting by Marcia Greenwood, Rochester Democrat and Chronicle / Rochester Democrat and Chronicle
USA TODAY Network via Reuters Connect
By Marcia Greenwood, Rochester Democrat and Chronicle | USA TODAY Network
