ENOUGH: LITA

WASHINGTON, Oct 26 – The U.S. Justice Department is investigating ⁣potential antitrust violations by⁤ the nationS largest meatpacking companies, Attorney General Merrick Garland announced Thursday. The probe centers on concerns that the industry’s consolidation has led to higher prices for consumers​ and reduced options​ for⁣ ranchers and farmers.

The investigation, conducted by the Justice Department’s Antitrust Division, will⁤ examine the practices of companies ‌including Tyson Foods, JBS, and Cargill⁤ -⁣ which together control an estimated 80% of the beef market, and a notable share of the pork and poultry ​markets. The‌ proclamation comes amid growing scrutiny of corporate concentration​ in the food ⁤industry and persistent complaints from ⁤agricultural groups about unfair market practices. The ⁢Justice Department ‌will ⁤focus on whether these companies have engaged in anti-competitive behavior that harms competition and drives up food costs for American families.

Garland stated the investigation will assess whether the meatpackers have violated antitrust laws through actions ‌that ‌stifle competition, ​such as exclusionary contracts, unfair pricing, and barriers⁣ to​ entry for smaller competitors.⁤ The announcement follows years of advocacy from ranchers and farmers who argue ⁤that the dominance of a few large ⁢companies has squeezed their profits and limited their ability to negotiate fair prices for their livestock. ⁤

The ​meatpacking industry has seen​ significant ‍consolidation over the past several decades. In 1980,⁤ the top five beef‍ packers controlled about 35% of the market; today, that​ figure ‌exceeds 80%. this consolidation has raised concerns about the ⁢industry’s ability to respond to disruptions, as evidenced by the supply chain issues experienced during the COVID-19 pandemic.

Reuters previously reported on‌ disruptions to global fertilizer and grain supplies stemming from Russia’s invasion of Ukraine,issues ⁣that ⁣further exacerbated pressures on the agricultural sector.The Justice Department’s investigation is part of a broader Biden ⁢administration effort to address anti-competitive ⁤practices across various industries,including ⁤technology,healthcare,and transportation.