Meatpacking Giants Face Federal Antitrust Scrutiny Over Consumer Prices

Federal officials said the four largest beef processors currently control more than 85% of the U.S. beef processing market. Per Fox News, officials speaking at a Monday news conference also noted that two of those major processors have Brazilian ownership ties, raising additional concerns among administration officials about foreign influence within the sector.

Acting Attorney General Todd Blanche used the event to encourage industry insiders to come forward with information related to possible market manipulation, including price-fixing, bid-rigging, market allocation, or procurement fraud.

“If the information you provide helps us secure a criminal penalty in excess of $1 million, you can be entitled to recover and receive 15-30% of the money that we recover,” Blanche said, describing the DOJ fraud whistleblower rewards program.

Blanche specifically urged ranchers, buyers, processors, and others involved in the cattle supply chain to report any suspected wrongdoing as the department pursues both civil and criminal antitrust avenues. According to Fox News, Justice Department officials did not provide a timeline for when the investigation could lead to formal charges or legal action, though they confirmed that multiple investigative tracks remain open.

Agriculture Secretary Brooke Rollins linked the investigation to broader concerns over domestic food production and the shrinking U.S. cattle supply. Rollins said the country had approximately 86.2 million head of cattle and calves as of Jan. 1, which she described as “the lowest since the 1950s.”

Related: DOJ Launches Criminal Antitrust Probe Into Major Meatpackers Amid Rising Beef Prices

Rollins also pointed to a decline in the number of American cattle ranchers, stating that more than 17% have left the industry over the past decade, including over 100,000 ranches.

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“Growing the herd size is an immediate problem in need of solutions, and we’ve already begun implementing across the government and into the states how we’re going to solve for that,” Rollins said.

She also highlighted foreign ownership within the meatpacking industry, specifically naming JBS and National Beef as companies with Brazilian ownership or major Brazilian investment.

“Half of these meatpacking giants, including the largest meat packer in the world, are either foreign-owned or have significant foreign ownership and control,” she said, calling that a threat to U.S. producers and national security.

White House senior trade adviser Peter Navarro also weighed in on the issue, blaming a combination of reduced cattle supply, concentrated corporate control, political lobbying, and foreign ownership for persistent beef inflation. According to Fox News, Navarro specifically criticized Brazilian meatpacking interests.

“I hasten to add here that the Brazilians are far more of the problem, and it’s complicated by the fact that the Brazilians, particularly JBS, hands out millions of dollars to our American political system like it’s candy,” Navarro said. “And the rate of return they get on that would make a Wall Street hedge fund blush, and we have got to put a stop to that.

“You’re going to hear from the ranchers at the front lines what they’ve suffered.

“I can tell you that a small herd and a high concentration ratio [is] a recipe for exactly the kind of beef inflation we are getting.”

Justice Department officials said whistleblower cooperation could play a key role as investigators continue examining whether dominant market players have engaged in illegal conduct within the U.S. beef industry.

Source: Fox News