The DOJ is reportedly pursuing a criminal antitrust investigation of beef packers
FOX Business’ Jeff Flock joins Varney & Co. to break the Justice Department’s criminal investigation into rising beef prices as Americans face a shock attached to the grocery store and experts point to a “perfect storm” for higher prices.
The Department of Justice is reportedly pursuing a criminal antitrust investigation into major meatpacking companies after President Donald Trump He asked them to face an investigation into the high prices faced by consumers.
The Wall Street Journal reportedciting sources familiar with the matter, that although the DOJ has revealed that it has been investigating beef companies following the president’s request, the crimes of the investigation have not been previously disclosed.
Trump said in November that beef companies were manipulating the price of cattle they bought from ranchers at the time raising prices for consumers. The report noted that antitrust crimes often focus on allegations related to market corruption or price fixing.
The Journal reported that while Trump’s comments blamed “a lot of foreign meatpackers,” the investigation looked at the four largest beef companies in the US.
TEAM TRUMP WANTS TO CUT OFF MEAT PRICES BY 2026 AS USDA’S TOP IS NEW AT $10-PER-IPOUND.
President Donald Trump called for an investigation into meatpacking companies over the price of beef last year. (Melissa Phillip/Houston Chronicle/Getty Images)
The report noted that Tyson Foods, Cargill, JBS and National Beef are the four leading companies operating in that part of the American market, while Tyson and Cargill are both American-headquartered firms, while JBS and National Beef are from Brazil.
Antitrust regulators are looking into contracts used by beef companies to gain cattle from breeders talking about the price some breeders say is being used, one of the Journal’s sources told the outlet.
BEEF PRICES SHIFT TO RECORD HIGHS AS NATIONAL CATTLE SUPPLY FALLS TO LOWEST LEVEL IN 70 YEARS
The Department of Justice is reportedly investigating meatpacking companies for their dealings with ranchers. (Samuel Corum/Bloomberg via Getty Images)
In addition, the Journal reported that leading beef processors were the subject of an investigation that began during Trump’s first term and continued under Biden, but was closed Department of Justice just weeks before it launched its latest investigation on similar grounds.
Beef prices have increased over the past year amid strong demand from consumers while the US cattle industry faces shortages and the lowest level of cattle supply in more than 70 years.
MEAT PRICES FOCUSED AS TRUMP SIGNS ORDERS TARGET CONSUMER EXIT
Beef prices have risen over the past year amid a national cattle shortage. (Joe Raedle/Getty Images)
The drought contributed to the decline in livestock, as it affected grasslands in states such as Texas, Oklahoma, Kansas and parts of the Southeast that were used by cattle herds. The loss of those feeding grounds caused farms to eliminate cattle and reduce their herds.
Ranchers also face rising costs, as things like feed, labor, fuel and equipment costs have risen sharply.
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Bureau of Labor Statistics data from March release Consumer price index (CPI) showed that beef and veal prices were up 12.1% last year. Within that category, beef prices rose 11% while beef prices rose 15.2% during that period.
