The US Justice Department has launched an investigation into potential antitrust violations in the beef and cattle markets, as beef prices reach record highs. Acting Attorney General Todd Blanche confirmed the probe, ordered by President Trump last November, during a press conference this week.
According to the Federal Reserve Bank of St. Louis, the average cost of a pound of ground beef was $6.86 in March, just three cents below February's record, representing a surge of nearly 48% over the last five years. Blanche stated that more than 3 million documents are being reviewed and urged whistleblowers to report price-fixing, bid-rigging, or procurement fraud, offering rewards of 15-30% of any penalty recovered over $1 million.
Blanche criticised the “big four processors” that control 85% of the beef processing market. Agriculture Secretary Brooke Rollins highlighted JBS and National Beef, noting that half of the major meatpacking giants are foreign-owned. Peter Navarro, senior counselor for trade, singled out Brazilian companies, particularly JBS, for their political donations in the US.
Rollins noted that the US has lost 17% of its cattle ranchers in the last decade, with cattle numbers falling to 86.2 million head. She attributed the decline to factors including drought and what she called the “radical left’s ongoing assault against ranching”. Around 61% of cattle inventory is affected by drought, according to the National Drought Mitigation Center.
Economist Ariel Ortiz-Bobea of Cornell University explained that drought conditions discourage ranchers from expanding herds, potentially leading to higher prices. Additionally, imports of Mexican cattle have been largely paused to prevent the spread of the New World screwworm, which has been detected near the US border. Bloomberg reported that beef processors are forced to compete for scarce cattle amid these challenges.
