May 26, 2020 - Health

U.S. government investigating meatpacking industry over soaring beef prices

Meat in grocery shelf. — Photo: NICHOLAS KAMM/AFP via Getty Images

The Departments of Justice is investigating allegations that the meatpacking industry is fixing or manipulating prices, a person familiar with the investigation told Axios on Tuesday.

Why it matters: The investigation follows a surge in meat prices after outbreaks in a number of processing plants led to closures in more than a dozen states. But processors have been paying farmers and ranchers extremely low prices for their cattle, according to Politico, which first reported on the investigation.

The DOJ will probe the so-called "big four" meat producers who together make up about 85% of the U.S. market — Tyson Foods, JBS, National Beef and Cargill.
The Department of Agriculture is also reviewing meat price fluctuations, Agriculture Secretary Sonny Perdue told Politico.

The big picture: The industry has long been a target of antitrust scrutiny. But the coronavirus crisis is "highlighting how the American system of getting meat to the table favors a handful of giant companies despite a century of government efforts to decentralize it," Politico writes.

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U.S. government investigating meatpacking industry over soaring beef prices

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