Cargill among meatpackers targeted by new Department of Justice investigation
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Wayzata-based Cargill is one of four meatpacking giants accused by President Donald Trump of collusion, price fixing and manipulation.
“For too long, a handful of giant meat packers have squeezed America’s cattle producers, shrunk herds, and jacked up prices at the grocery store,” a White House press release said.
President Trump previously took to social media on Friday to order an investigation into Cargill, Tyson Foods, JBS and National Beef. Attorney General Pam Bondi said an investigation was underway at the Department of Justice.
Cargill did not immediately respond to a request for comment. The Meat Institute, a trade group representing meat and poultry processors, said beef packers have been losing money.
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“For more than a year, beef packers have been operating at a loss due to a tight cattle supply and strong demand,” Meat Institute President and CEO Julie Anna Potts said in a press release.
The supply of cattle is at its lowest level in decades, while demand for beef is rising.
President Donald Trump previously announced a quadrupling of Argentine beef imports to potentially lower beef prices, a move that’s been largely denounced by American producers.
The White House press release said the investigation, though, could show that four meatpacking giants’ apparent monopoly has driven up consumer prices.
“This investigation will root out any illegal collusion, restore fair competition, and protect our food security,” the press release said.
But the Meat Institute’s Potts said the industry is already heavily regulated, and market transactions are transparent. She added that beef packers and cattle producers rely on one another.
“The entire beef value chain is strongest when supply is balanced by demand,” Potts said. “Beef packers remain committed to ensuring safe, delicious and nutrient-dense beef remains affordable to American families who rely on its nourishment.”
Tyson, Cargill, JBS and National Beef Packing Co. have often been dubbed as the “Big Four.” Together, they slaughter over 80 percent of U.S. cattle meant for meat cuts, according to Reuters. That amount of control has often led to discontent among ranchers.
“We agree — American ranchers aren't to blame for high beef prices,” the National Farmers Union said in a social media post. “It’s time to go after the big four meatpackers who dominate the beef industry, driving up prices for consumers and pushing family farmers and ranchers to the brink.”
However, the United States Cattlemen’s Association said on social media that while it’s appreciative of the Trump Administration’s scrutiny of the agriculture industry, there may be a different reason why beef prices are higher.
“USCA will continue to state that beef prices in the grocery store are not too high,” the association said. “Prices are a direct reflection of consumer demand — consumers want U.S. beef.”
