Tester Stresses Changes Needed For Beef Industry

U.S. Sen. Jon Tester, D-Mont., was in the national spotlight to discuss the high costs of beef and the struggles of ranchers last week.

Appearing on the MSNBC show, “The Last Word with Lawrence O’Donnell,” on Wednesday, Jan. 5, Tester commended President Biden’s plan to distribute $1 billion from the American Rescue Plan for the expansion of independent meat processors.

Tester noted that four companies control more than 80 percent of the nation’s beef market. “That’s not real competition,” Tester said. “That’s not how capitalism is supposed to work.” The Democrat noted that calf operations and small to middle size feeders are going broke under the current system. Tester said a larger workforce including qualified cutters is needed. Funds are designated for increasing the workforce under Biden’s plan. The senator said other measures need to be approved by Congress including Product of USA labeling and having an investigator watching over big packing companies. Tester said big packers have the capability to sell at a loss for a time period in order to put small operations out of business.

“That shouldn’t be allowed to happen,” he said. “Right now, we’re beholdeth to four companies on the beef side of things.”

He said the current system will ruin rural America and the country’s food security. “That’s not an overstatement. That’s a fact,” Tester said.

It was noted that although the cost for buying beef is higher for consumers, the payments that ranchers receive are actually lower.

“These folks are getting squeezed out of business by a very consolidation market place,” Tester said. “It can change, but laws have to be enforced.”