Pulling multiple levers to keep food affordable. Multi-pronged interagency effort includes moves by FTC, Labor, USTR.
Continued measures to ensure a secure and affordable food pipeline for military families.
In the latest move, the President signed an executive order on Saturday that directed the Justice Department and Federal Trade Commission to establish task forces on anti-competitive behavior in the food supply chain. The order specifically directs them to look at “whether control of food-related industries by foreign entities is increasing the cost of food products in the United States or creating a national or economic security threat to Americans.”
The task forces are expected to brief congressional leaders within six months. The order calls on the DOJ to pursue criminal proceedings if it finds evidence of price-fixing. The order targets foreign companies and calls for the creation of a Food Supply Chain Security Task Force within the Department of Justice and the Federal Trade Commission. The two agencies are tasked with investigating food-related industries to determine whether anti-competitive behavior exists in U.S. food supply chains, as well as whether foreign control of food-related industries is increasing the cost of food in the U.S.
American food production relies heavily on foreign businesses and capital. According to Axios, among the so-called Big Four meatpackers that control more than 80% of the market, two—JBS and National Beef—are subsidiaries of Brazilian companies. National Beef was sold to Brazil’s Marfrig. Smithfield Foods, one of the world’s largest pork producers, is controlled by China’s WH Group.
“An affordable and secure food supply is vital to America’s national and economic security,” the executive order states. “However, anti-competitive behavior, especially when carried out by foreign-controlled operations, threatens the stability and affordability of America’s food supply.”
On the military front, the Administration worked to ensure food security for the U.S. military worldwide by fully funding the commissary benefit to keep prices low for military personnel and their families through a world-wide network of on-base grocery stores that offer major savings. The commissary program also ensures a secure pipeline for products to military personnel overseas that was critical during the pandemic. The Administration also moved to keep commissaries, exchanges and other on-base retail outlets open during the recent government shutdown by allowing commissary program managers to access reserve fund to keep vital food products flowing to military families worldwide.
“We recognize and appreciate the Administration’s efforts to keep food prices low and the vast network of manufacturers and distributors dedicated to the military channel will continue to partner with the Administration and the Department of War to ensure a secure and affordable pipeline for the flow of products to our military families,” said Steve Rossetti, President of the American Logistics Association, the trade group for suppliers to on-base retail programs. Rossetti also said that his organization will be working with the Administration to “ensure quality and safe American products continue flow to overseas military families and not impeded by artificial and unnecessary host nation import barriers.”
On other food affordability fronts, in November the President issued an executive order aimed at reducing coffee and other food prices and removed reciprocal tariffs on several countries that export food to the United States. The president also lifted a 40% tariff on Brazilian food products.
In October, the U.S. Labor Department moved to make it cheaper for farmers to hire foreign workers and the Administration just announced a $12 billion program to aid American farmers.
