If you haven't noticed, beef prices are astronomical. So the Department of Justice Antitrust Division has announced that it is expanding its ongoing beef affordability investigation to include the eight largest grocery retailers in the nation.
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Why Are Beef Prices So High Right Now?
Herd sizes have been declining for years. They are now at their lowest level since 1961. Yet, demand for beef continues to increase, leading to higher prices.
Meanwhile, as the New York Post reports, the DOJ began investigating the "Big Four" meatpackers in May. It states that JBS, Cargill, Tyson Foods, and National Beef control more than 85% of the country's beef processing market.
The investigation is now expanding to retailers. Associate Attorney General Stanley E. Woodward Jr. announced he has sent letters to Kroger, Publix, Walmart, Albertsons, Aldi, Ahold Delhaize, Costco, and Amazon regarding the "recent increases in the retail price for beef."
"Beef prices are a critical concern to Americans, and a priority for this Justice Department," the department wrote on social media.
What Is the DOJ Looking For?
Since it began its investigation, the DOJ says it has reviewed more than 3 million documents and interviewed industry participants. Federal officials are looking into whether concentration in the meatpacking industry has led to higher prices.
Attorney General Todd Blanche said at a news conference in May that whistleblowers could receive a significant reward for information that leads to successful enforcement actions.
"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% to 30% of the money that we recover," Blanche said
President Donald Trump, in an effort to break up what he calls the meat industry's "nasty monopoly," said last week that he would allow the drafting of legal documents that would give farmers and ranchers "the right to process their own food."
However, last year, President Trump introduced a plan to import more meat from Argentina. Ranchers and trade groups opposed it because of its potential impact on feedlot operators.
Economists added that Argentine beef accounts for only 2% of beef imports, so they believe shipping it into the United States wouldn't have much impact on prices. Then, last month, over 30,000 pounds of imported beef were recalled because they had not been reinspected.
