The four companies — JBS, National Beef, Cargill, and Tyson Foods — control more than 85% of U.S. beef processing
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Acting Attorney General Todd Blanche announced Monday that federal investigators examining possible antitrust violations in the cattle and beef industries had already sifted through upward of 3 million documents and spoken with people across the industry.
The four largest beef processors — JBS, National Beef, Cargill, and Tyson Foods — together control more than 85% of U.S. beef processing capacity, Blanche said at a news conference. The average price of ground beef in U.S. cities reached about $6.70 a pound in March, according to MarketWatch, just below highs seen earlier in the year.
Blanche pointed to shuttered facilities and the industry's concentrated ownership as warning signs, saying those factors "indicate anticompetitive activity." Blanche called on cattle producers, buyers, and processors to come forward with evidence of collusion, including price-fixing schemes, bid-rigging, and market allocation, and outlined a DOJ whistleblower program under which informants could collect between 15% and 30% of any criminal penalty that tops $1 million.
Officials declined to give a timeline for when the probe might produce charges or litigation, though they noted that civil and criminal tracks can proceed simultaneously. Blanche declined to detail how the current probe differs from one opened during President Donald Trump's first administration that the Justice Department closed last year, according to Bloomberg.
Agriculture Secretary Brooke Rollins $ROL, who also spoke at the news conference, noted that the share of the market held by dominant processors has surged dramatically since 1977, when concentration sat at just 25%. Rollins said the national cattle herd had fallen to roughly 86.2 million head at the start of the year, a level unseen since the Eisenhower era, while more than 100,000 ranching operations had disappeared over the previous decade. Rollins also warned that the companies' sprawling networks of subsidiaries funnel cattle producers into a marketplace with few competitive outlets. "Together, these companies operate through dozens of subsidiary businesses, creating a landscape that leaves many of our cattle producers with limited marketing options," she said.
Rollins flagged what she called national security implications of the ownership structure, pointing out that two of the four dominant processors — JBS and National Beef — are either headquartered in Brazil or substantially controlled by Brazilian interests. The four companies did not immediately respond to requests for comment.
The probe traces back to last November, according to Bloomberg, when Trump directed federal authorities to scrutinize the meatpacking sector as beef costs climbed to record levels. Blanche said Monday the agency would also announce a settlement this week that would "directly affect" the prices of chicken, pork, turkey, and other meats.
In its most recent quarterly report, Tyson disclosed that beef prices climbed 11.5%. Shares gained ground Monday after the company beat Wall Street estimates and lifted its full-year adjusted operating income guidance. JBS stock fell about 1% on the day.
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