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DOJ Reportedly Opens Criminal Antitrust Probe Into Major U.S. Beef Packers

The criminal focus signals a push to test whether packers crossed the line from hard bargaining to collusion.

Overview

  • The Justice Department’s antitrust division has reportedly opened a criminal investigation into Tyson Foods, Cargill, JBS and National Beef, according to multiple outlets citing sources.
  • Investigators are examining cattle purchase contracts that tie prices to a benchmark some ranchers allege was manipulated, The Wall Street Journal reported.
  • Beef and veal prices rose 12.1% over the past year as the U.S. cattle herd fell to a 70-year low, intensifying pressure on shoppers and sellers.
  • The reported probe follows President Trump’s public call for action last year and comes after a prior inquiry into leading processors was closed weeks earlier, the Journal said.
  • A criminal case would require proof that rivals agreed to fix prices or rig bids, a higher bar than civil suits that have already produced more than $170 million in settlements.