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Federal investigation targets meatpacking industry practices

The Trump administration is investigating the four major meat processors for potential antitrust violations.

In a news conference on Monday, acting Attorney General Todd Blanche said the Justice Department is reviewing more than 3 million documents and interviewing industry participants. 

Craig Uden is the president of Nebraska Cattlemen. “When we’re asked to submit information, we will. We’ll see where it goes. I don’t know what their purpose (is), but it never hurts for people to be on the same page.”

He tells Brownfield price transparency and discovery are concerns for some producers. “If we could ever get information in a timely manner, (I mean), when you breakdown a beef carcass and it goes about 200 different ways and to several countries, it makes it a challenge to figure out what the pricing of that product is.”

Uden says he understands concerns about high beef prices, but tight supplies are a major factor. “It’s been kind of a perfect storm as far as seeing our product come to life as it has and everyone wants to consume our product, but we decreased our numbers at such a rapid rate.”

Ag Secretary Brooke Rollins says the historically small size of the cattle herd adds to food security concerns and high beef prices, but she’s confident the moves the administration has made will start lowering beef prices as soon as this summer. “Based on opening up the allotments, putting more money into mid-sized and and smaller processors, incentivizing our ranchers instead slaughtering to keep their heifers ect.”

But, she says, “This is a massive, complicated policy challenge that we’re working to fight every single day and to solve for.”

The four largest beef processors control more than 85 percent of the U.S. beef processing sector. Rollins said two of the four, JBS and National Beef, are Brazilian-owned.

During Monday’s event, Blanche also said the Department is expected to announce a historic settlement that will directly impact the prices of proteins like chicken, pork, and turkey. In 2023, the Justice Department launched an investigation into Agri Stats, alleging it violated antitrust law sharing sensitive data that reduced competition.

In a statement to Brownfield, NCBA Chief Executive Officer Colin Woodall said, “NCBA appreciates Acting Attorney General Todd Blanche for providing an update on antitrust investigations in the meatpacking sector. This is the first update we have received in the six years since these investigations first opened. We appreciate the transparency in this process and look forward to further developments.”

Brownfield’s Meghan Grebner contributed to this story.