Beef prices are hitting record highs. The DOJ has launched an antitrust probe into the biggest producers
The Justice Department says that it is investigating potential antitrust violations in the beef and cattle markets after beef prices hit record highs.
The average cost of a pound of ground beef was $6.86 in March, only three cents down from February’s record, according to the Federal Reserve Bank of St. Louis. That represents a surge of nearly 48% in the last five years.
During a press conference this week, acting Attorney General Todd Blanche confirmed President Trump had ordered an investigation into the beef industry last November that is now underway.
In his speech, Blanche confirmed more than 3 million documents were being reviewed as part of the probe. He also urged whistleblowers to report possible price-fixing, bid-rigging, market allocation or procurement fraud with the prospect of receiving money in return.
“If the information you provide helps us secure a criminal penalty in excess of $1 million, you can be entitled to recover and receive 15-30% of the money that we recover,” he said.
Addressing reporters, Blanche took aim at the “big four processors,” whom he claims control 85 percent of the beef processing market.
Agriculture Secretary Brooke Rollins focused on two of the processors: JBS and National Beef. The former is headquartered in São Paulo, while the latter is owned by Brazilian multinational Marfrig.
“Half of these meatpacking giants, including the largest meat packer in the world, are either foreign-owned or have significant foreign ownership and control,” she said.
Peter Navarro, the senior counselor for trade and manufacturing to President Trump, hit out at U.S.-based firms Tyson Foods and Cargill, as well as the Brazilian companies.
“I hasten to add here that the Brazilians are far more of the problem, and it’s complicated by the fact that the Brazilians, particularly JBS, hands out millions of dollars to our American political system like it’s candy,” Navarro said.
During her remarks, Rollins said that the United States had lost 17 percent of its cattle ranchers in the last decade and said that U.S. cattle numbers had plummeted to 86.2 million head of cattle and calves.
“That is the lowest since the 1950s,” she said.
Rollins said that the decline can be attributed to a number of factors. She suggested that one of the key factors was what she described as the “radical left’s ongoing assault against ranching as a way of life” and hit out at “climate alarmism”.
The agriculture secretary added that “growing the herd size is an immediate problem in need of solutions.”
