By Ryan Hanrahan
Meatingplace’s Tom Johnston reported that “the U.S. Department of Justice on Tuesday said it is expanding its investigation of record high beef prices to eight major grocery chains.“
“In a post on X, the DOJ’s Antitrust Division said Associate Attorney General Stanley Woodward sent letters to Kroger, Walmart, Publix, Albertsons, Aldi, Ahold Delhaize, Costco and Amazon,” Johnston reported. “‘Beef prices are a critical concern to Americans, and a priority for this Justice Department,’ the post stated.”
“The Trump administration first said last year that producers ‘have to get their prices down,’ then blamed the ‘Big Four’ meatpackers and launched an antitrust probe in May, and now is rattling the next link in the meat supply chain,” Johnston reported. “The executive branch’s search for answers continues despite what economists say are the clear culprits: a record-low cattle inventory caused primarily by droughts and prolonged by persistent consumer beef demand.”
Fox Business’ Michael Sinkewicz reported that “Associate Attorney General Stanley E. Woodward Jr. sent letters to the eight companies regarding ‘recent increases in the retail price for beef,’ according to the Justice Department.”
“The letters obtained by FOX Business provide details about the scope of the investigation, showing that federal antitrust officials are examining retailers’ beef pricing strategies, profit margins, costs and purchasing arrangements dating back to 2020,” Sinkewicz reported. “‘The Antitrust Division is assessing trends in beef prices — a matter of critical concern to the American public, and a priority for the United States Department of Justice,’ Woodward wrote in identical letters dated July 14 and addressed separately to each company.”
“The DOJ said it would seek records from each company related to its retail beef sales and prices, wholesale purchases, costs and margins, pricing and purchasing strategies and analyses of trends in wholesale and retail beef prices. Investigators are also seeking information about other factors influencing beef prices,” Sinkewicz reported. “DOJ requested that company personnel brief investigators on four areas, including how their beef pricing strategies and margins have changed between 2020 and 2026, changes in costs over the same period and their wholesale arrangements for purchasing beef from meatpackers.”
Source : illinois.edu