Justice Department Opens Criminal Antitrust Investigation Into Major Beef Processors

Key Details The U.S. Justice Department has confirmed it is investigating potential antitrust violations in the meatpacking industry, focusing on how major processors including JBS and Tyson Foods purchase cattle from ranchers. Acting Attorney General Todd Blanche stated the agency is moving as quickly as possible but declined to provide specifics about the scope or timeline of the probe. Why It Matters This dual investigation - involving both criminal and civil attorneys - comes as domestic beef prices hit record highs and the U.S. cattle herd continues shrinking. The probe was initiated after President Trump ordered the Justice Department to examine meatpacking industry practices in November amid soaring consumer costs. The Core Issue Four companies control approximately 85% of U.S. cattle purchases, raising longstanding concerns about price manipulation through alternative marketing agreements rather than open auctions. While these contracts reference spot market prices, industry consolidation has historically drawn criticism from ranchers about potential price distortion. Current Impact The cattle shortage has become so severe that meatpackers are reportedly losing money on every animal processed, according to HedgersEdge data. Chicago cattle futures recently hit record highs, forcing the U.S. to increase beef imports to meet domestic demand.