By Leah Douglas
(Reuters) – Poultry corporations within the U.S. may very well be required to regulate how they pay their contract rooster farmers underneath a rule proposed by the U.S. Division of Agriculture on Monday.
The rule is the third proposed by the administration of President Joe Biden to reinforce competitors within the meatpacking sector, the place 4 corporations management between 55% and 85% of the cattle, hog and rooster markets.
Below the rule, rooster farmers may now not have their base compensation docked for a way their flocks examine to their friends, and would obtain extra data to evaluate dangers related to capital enhancements requested by poultry corporations.
Usually, contract poultry farmers for corporations, similar to Tyson Meals (NYSE:) and Pilgrim’s Delight (NASDAQ:) are paid in a “event system” that ties their compensation to efficiency – like how a lot their chickens weigh, or mortality charge – towards different farmers. The farmers are additionally sometimes chargeable for paying for updates to their rooster barns.
“Producers got here to me and indicated deep considerations in regards to the methods they had been being dealt with and handled on this event system,” Agriculture Secretary Tom Vilsack mentioned on a name with reporters.
The company beforehand finalized a rule to reinforce transparency between rooster farmers and processors, and one other to ban retaliation towards rooster farmers for whistle-blowing or taking part in associations.
The USDA expects to launch extra guidelines on competitors within the livestock sector within the coming months, Vilsack mentioned.
The proposed rule introduced on Monday shall be open to public remark for 60 days.
