A bicameral group of lawmakers lead by two South Dakotans is calling for a swift conclusion to the Department of Justice’s investigation into the nation’s four biggest meatpackers.
“Cattle producers, especially small feeders, are again experiencing difficult conditions that are threatening their ability to stay in business. With a tight supply chain, any changes in processing capacity can have a dramatic impact on cattle prices, preventing producers from capturing margin from boxed beef rallies,” the letter states. “It is critically important that producers have fair and transparent markets for the commodities they produce. We urge the DOJ Antitrust Division to continue vigilance and where possible, provide updates of findings.”
The letter was signed by a total of 16 lawmakers and they received the support of the National Cattlemen’s Beef Association.
“Despite strong consumer demand and reopening across much of the country, cattle producers face significant business challenges. The farmers and ranchers NCBA represents are contending with high market volatility, drought, and extreme input costs, and they can’t capture the value they deserve for the high-quality product they supply,” said NCBA Vice President of Government Affairs Ethan Lane. “We have a high supply of cattle at one end of this equation and a high demand for U.S. beef at the other, but the middle is being absolutely choked by the lack of processing capacity. It’s in the best interests of both producers and consumers for the Department of Justice to get to the bottom of the current market dynamics, and assess why they seemingly always result in producers getting the short end of the deal. Cattle producers deserve to know whether or not the price disparity that has plagued our market is the result of anti-competitive or other inappropriate practices in the packing sector. We thank Senator Thune and Congressman Johnson for keeping up the drumbeat on this critical issue. We hope their bicameral request for a progress report will be met at DOJ with the urgency it warrants, and we hope to see results from the Attorney General soon.”
The investigation began on May 22, 2020.