The US Department of Justice has confirmed it is investigating potential antitrust violations among meatpacking companies. Acting US Attorney General Todd Blanche said the "current market structure and high concentration in the industry indicate anti-competitive activity," pointing to four processors that control over 85 percent of the beef processing market.
Brooke Rollins, the US Secretary of Agriculture, named the four companies as Cargill, JBS, National Beef and Tyson Foods. She described their consolidation as creating a "frightening landscape for cattle ranchers" and giving the processors "an unprecedented ability to wield market power and influence." The US cattle herd stood at around 86.2 million head at the start of the year, the lowest level since the 1950s, Rollins noted. Consolidation reduces options for ranchers selling cattle and weakens their negotiating power, she said.
The DoJ has reviewed more than three million documents and contacted hundreds of industry participants, with many interviewed as part of the inquiry. Blanche said the investigation operates in parallel with both civil and criminal tracks, depending on what evidence emerges. He called on whistleblowers to provide information on pricing collusion, bid rigging, market allocation and procurement fraud, noting financial rewards are available.
The department also plans to strike a settlement in its case against data provider Agri Stats, which it alleges enabled anticompetitive behavior through reports on meat prices and sales. Agri Stats has denied the claims.