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Justice Department Confirms Antitrust Probe Into ‘Big Four’ Beef Packers

The probe weighs alleged collusion claims against evidence of tight cattle supplies.

Overview

  • The Justice Department, which detailed the probe Monday, said it has reviewed more than 3 million documents and interviewed hundreds across the cattle-to-beef supply chain using both civil and criminal tools.
  • Investigators are examining potential price fixing and other collusion by JBS, Cargill, Tyson Foods and National Beef, which together process about 85% of U.S. beef.
  • Officials urged insiders to report price fixing, bid rigging, market allocation or procurement fraud, noting whistleblowers can receive 15% to 30% of penalties over $1 million.
  • Acting Attorney General Todd Blanche said a settlement to be announced later this week could affect chicken, pork and turkey prices, and the Boston Globe reported it resolves the DOJ’s Agri Stats case.
  • Economists cited in the coverage said high beef prices stem from a very small cattle herd and strong demand rather than proven packer abuse, with ground beef averaging about $6.70 per pound in March per federal data.