FOX Business’ Jeff Flock Joins ‘Varney & Co.’ breaking the Justice Department’s criminal investigation into rising beef prices as Americans face sticker shock at the grocery store and experts point to a “perfect storm” costing high.
The Justice Department has confirmed its active investigation into possible antitrust violations in the US cattle and beef markets, reviewing more than 3 million documents and interviewing industry participants as federal officials consider whether the power of highly concentrated meatpackers has contributed to higher beef prices.
The four largest beef processors control more than 85% of the US production market – half of which belongs to Brazil – Trump administration officials noted at a news conference on Monday, where Acting Attorney General Todd Blanche urged whistleblowers to take part in reforming the bad actors who have contributed to raising the price of meat for Americans.
“If the information you provide helps us obtain a criminal penalty of more than $1 million, you may be entitled to recover and receive 15-30% of the proceeds,” Blanche said, explaining the DOJ’s criminal reward program. He urged breeders, buyers, processors and others to report possible price fixing, bid rigging, market allocation or procurement scam.
Agriculture Secretary Brooke Rollins tied the investigation to broader concerns about food security and dwindling domestic cattle supplies, saying the US had about 86.2 million cows and calves as of Jan. 1 – “the lowest since the 1950s.”
DOJ IS REPORTED TO PURSUE INVESTIGATION OF MAJOR MEAT PACKAGING COMPANIES
Acting Attorney General Todd Blanche has confirmed an antitrust investigation into the ongoing beef price hikes under Biden, calling for whistleblowers to turn bad actors in the market. (Kevin Dietsch / Getty Images / Getty Images)
The DOJ is reportedly pursuing an investigation of major meatpacking companies
Speaking on the supply side of the economic issue, Rollins said the country has lost more than 17% of cattle ranchers in the past decade, including more than 100,000 farms, as a result of cuts by left-wing anti-cow and pro-meat groups. “the fear of fighting cattle in America“ again “The left’s ongoing attack against ranching as a way of life.”
“Cattle growth is an urgent problem that needs solutions, and we’ve already started working across the state and the states on how we’re going to solve that,” Rollins said.
Rollins also singled out foreign ownership among the major processors, saying that two of the “big four” – JBS and National Beef – are Brazilian-owned or have significant Brazilian ownership.
TRUMP DIRECTS DOJ TO INVESTIGATE MEAT PACKAGING COMPANIES FOR ‘ILLEGAL CONNECTION’ BETWEEN RELIGIOUS MEAT PRICES.
White House trade adviser Peter Navarro, Agriculture Secretary Brooke Rollins and acting Attorney General Todd Blanche lay out the causes of beef price inflation that has continued during the Biden era. (Kevin Dietsch / Getty Images / Getty Images)
“Half of these meatpacking giants, including the largest meatpackers in the world, are foreign-owned or have significant foreign ownership,” he said, calling that a threat to American producers and national security.
White House senior trade adviser Peter Navarro said a combination of historically small cattle herds, ruling processors, leftist compensators and Brazilian ownership have combined to fuel Biden’s ongoing beef inflation.
“I hasten to add here that the Brazilians are the ones with the biggest problem, and it’s ironic that the Brazilians, especially JBS, are handing out millions of dollars to our American political system like candy,” Navarro said. “And the rate of return they’re getting would put a Wall Street hedge fund to shame, and we have to stop that.
WHY HOT MEAT PRICES ARE STILL FAR
FOX Business Correspondent Jeff Flock reports the Justice Department’s antitrust division has reportedly opened a criminal investigation related to beef price gouging on ‘The Big Money Show.’
“You will hear from the best breeders what they suffered.
“I can tell you that it is a small herd and a high number of torture [is] recipe for exactly the kind of beef we get.“
DOJ officials did not say when the investigation might lead to charges or a lawsuit, but they said civil and criminal antitrust inquiries could continue concurrently, with the help of whistleblowers providing evidence to investigators.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| TSN | Company TYSON FOODS INC. | 63.68 | -0.39 |
-0.61% |
| JBS | JBS | 16.08 | +0.02 |
+0.12% |
| PPC | HORSES FOR PRIDE | 31.88 | -1.22 |
-3.69% |
| WHGLY | WH GROUP LTD. (HK) | 24.05 | -0.51 |
-2.08% |
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“Here’s the reason why this whistleblower program is so important: It’s because those are the people who really know where the bodies are buried, where the prices are fixed,” said Navarro, referring to “when the closing of the meatpacking house was not because there was an electrical problem; it was something else.”
“So, I welcome you, my hooded friends – I think that’s a gift that they might be breeders in the room.”
