WASHINGTON, Oct 26 – The U.S. Justice Department is investigating โฃpotential antitrust violations byโค 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 consumersโ and reduced optionsโ forโฃ ranchers and farmers.
The investigation, conducted by the Justice Department’s Antitrust Division, willโค examine the practices of companies โincluding Tyson Foods, JBS, and Cargillโค -โฃ which together control an estimated 80% of the beef market, and a notable share of the pork and poultry โmarkets. Theโ proclamation comes amid growing scrutiny of corporate concentrationโ in the food โคindustry and persistent complaints from โคagricultural groups about unfair market practices. The โขJustice Department โwill โคfocus 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 โthat โstifle competition, โsuch as exclusionary contracts, unfair pricing, and barriersโฃ toโ entry for smaller competitors.โค The announcement follows years of advocacy from ranchers and farmers who argue โคthat the dominance of a few large โขcompanies has squeezed their profits and limited their ability to negotiate fair prices for their livestock. โค
The โmeatpacking industry has seenโ significant โconsolidation over the past several decades. In 1980,โค the top five beefโ packers controlled about 35% of the market; today, thatโ figure โexceeds 80%. this consolidation has raised concerns about the โขindustry’s ability to respond to disruptions, as evidenced by the supply chain issues experienced during the COVID-19 pandemic.
Reuters previously reported onโ disruptions to global fertilizer and grain supplies stemming from Russia’s invasion of Ukraine,issues โฃthat โฃfurther exacerbated pressures on the agricultural sector.The Justice Department’s investigation is part of a broader Biden โขadministration effort to address anti-competitive โคpractices across various industries,including โคtechnology,healthcare,and transportation.
