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WASHINGTON — The Agriculture Division proposed a rule on Thursday meant to extend equity within the poultry business, which is dominated by a handful of meat processors.
The division additionally mentioned it deliberate to research whether or not sure corporations ought to be extra stringently regulated, and it introduced $200 million in funding for impartial meat processors to extend capability at slaughterhouses.
The actions “finally will assist us give farmers and ranchers a good shake, strengthen provide chains and make meals costs fairer,” Tom Vilsack, the secretary of agriculture, mentioned in an announcement.
The proposed rule would require the businesses to reveal sure particulars to farmers, like how pay is calculated; how a lot feed, chicks and provides are offered to different growers; and the place the farmers rank underneath a performance-based system that determines how they’re paid. The businesses would even be required to ensure a minimal variety of chickens that they might provide to farmers in a yr.
Greater than 90 p.c of chickens eaten by Individuals are raised by farmers underneath contracts with poultry processing corporations. 4 poultry-processing corporations management greater than half of the market, whereas the highest 20 corporations management 95 p.c. Farmers are paid based mostly on their efficiency relative to others, pitting growers in opposition to each other. This technique, generally known as a poultry match, results in vast variation in revenue and has been criticized as abusive and opaque.
The division expects to launch extra guidelines on meatpacking this yr.
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Supply- nytimes