Norm Singleton writes at Real Clear Markets, “As rising prices and diminishing supplies have replaced COVID as the American people’s number one concern, President Biden has unsurprisingly announced several initiatives aimed at lowering prices and restocking the shelves. Unfortunately, Biden’s proposals will increase prices and decrease supply of goods and services.

For example, Biden has announced plans to spend $1 billion in an attempt to increase competition in the meat processing industry. According to the President, the reason meat prices are high and supplies are low is because of greedy big business.  Not because, wait for it, the government shut down the economy for a year.

Where he is right is that four companies control 85% of the packaged beef market; 70% of the pork market; and 54% of the poultry market. This is definitely enough consolidation to draw attention. However, if one takes the modern approach of applying the consumer welfare standard to one or a few companies allegedly controlling a market, one sees no need for government intervention.

Better yet, Biden’s case for antitrust style intervention gets even worse as you keep looking…

The market effects of higher barriers to entry into a given market – is a more concentrated market. This is what Biden should focus on – handling the poor public policy instead of throwing money at the issue and ignoring the underlying problems.

Thankfully, in the case of meatpacking Kentucky Representative Thomas Massie and Maine Senator Angus King have introduced the PRIME Act (HR 3835/S. 2001), which allows custom slaughterhouses to sell their products directly to consumers in the same state. This legislation increases competition, consumer choice, and in the process provides a market solution.”

Read the entire column.

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The Washington Post reports, “As consumers chafe at growing food price inflation, the Biden administration is pointing a finger at some of the country’s largest meat companies, suggesting pandemic profiteering may be responsible for the steep rise in the prices of beef, pork and poultry.

Recently, the prices for beef, pork and poultry have all increased far more than other kinds of food, accounting for as much as half of price inflation at grocery stores.”

Big government regulates little guys out of existence and then blames subsequent consolidation for higher prices.

Pass the PRIME Act !

to empower consumers,

to revitalize the small processing industry, and

to let small farms flourish!

https://t.co/xLp1hTLn6f

— Thomas Massie (@RepThomasMassie) October 5, 2021

Spectrum News: “Meat and dairy farmer Kenya Abraham of Slak Market Farm says the pandemic and social distancing measures that led to economic distress have made the challenges of small farmers more pronounced.

‘If I have a cow and I want to process my bull, it’s illegal for me to go to a custom slaughterhouse and this is a facility where these animals are butchered professionally, package that meat, now I’ve got 400 pounds of hamburger and some steaks. I cannot sell to you if you came to my farm store for a package of hamburger,’ said Abraham over Skype from her farm in Lexington, Kentucky.

Northern Kentucky Congressman Thomas Massie’s Processing Revival and Intrastate Meat Exemption Act also known as the PRIME Act speaks to this concern by expanding the exemption of custom slaughtering of animals from federal inspection requirements.

‘It would allow these farmers that are having to euthanize their animals to use a non-USDA facility to get the food and farm product to consumers in their own states,’ said Massie.”

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