The Justice Department's antitrust division disclosed on Wednesday that it has broadened an investigation into higher beef prices to encompass eight major retailers. Associate Attorney General Stanley Woodward has issued letters to a group of companies raising questions about the recent surge in retail beef costs.
The investigation's expanded list of retailers includes national big-box and grocery chains as well as online commerce firms. Specifically named among the companies now under scrutiny are Walmart and Costco, along with e-commerce company Amazon. The probe also covers traditional grocers such as Kroger and Albertsons, and supermarket operators Aldi, Publix and Ahold Delhaize USA.
The antitrust division has been conducting a criminal investigation into the conduct of the large meatpackers. That inquiry intensified after public accusations that meatpacking companies were contributing to elevated beef prices through manipulation and collusion, and after instructions were issued to the Justice Department to look into the matter.
Earlier this year, Tyson Foods reached an $82.5 million settlement to resolve a proposed class-action lawsuit brought by grocers and other businesses. The lawsuit alleged that Tyson conspired to push up U.S. beef prices by restricting supply. That settlement is part of the broader regulatory and legal backdrop against which the department has widened its review to include retailers.
Market concentration in slaughtering remains high. Tyson Foods, Cargill, JBS USA and National Beef Packing Company account for roughly 85 percent of the slaughter of U.S. grain-fattened cattle used to produce steaks, roasts and other supermarket beef cuts. That concentration has been a focal point in the ongoing inquiries.
U.S. retail beef prices reached a record high in May. Those price levels have added pressure to household budgets at a time when consumers are also contending with higher living costs, including increases in gasoline prices related to the conflict in the Middle East.
The eight retailers named in the expanded probe did not immediately respond to requests for comment.
Details at a glance
- Associate Attorney General Stanley Woodward has sent letters to retailers about the surge in retail beef prices.
- The list of companies now under inquiry includes Walmart, Costco, Amazon, Kroger, Albertsons, Aldi, Publix and Ahold Delhaize USA.
- The antitrust division previously opened a criminal investigation focused on large meatpackers amid allegations of manipulation and collusion.
- Tyson Foods agreed to pay $82.5 million to settle a proposed class-action accusing it of conspiring to inflate beef prices.
- Four meatpackers—Tyson, Cargill, JBS USA and National Beef—process about 85 percent of U.S. grain-fattened cattle.
- U.S. beef prices hit record highs in May and have been pressuring consumer budgets already strained by rising gasoline costs tied to the Middle East conflict.