Justice Department Opens Criminal Investigation of Beef Companies

Bloomberg’s Josh Sisco and Leah Nylen reported that “the Justice Department has opened a criminal investigation in recent months into how prices are set in cattle auctions, according to people with knowledge of the matter. The DOJ lawyers investigating National Beef Inc., Cargill Inc., Tyson Foods Inc. and JBS NV are looking to determine whether the companies reached illegal agreements over how they purchase cattle from ranchers, said some of the people, who asked not to be named discussing a confidential matter.”

“The beef investigation — which also involves a separate probe by a team of civil DOJ attorneys — comes after President Donald Trump demanded an inquiry in November amid record prices,” Sisco and Nylen reported. “Ranchers have long complained about anticompetitive conduct by the four companies, which control about 85% of the US market, according to the Agriculture Department.”

“The criminal aspect of the probe raises the stakes considerably for the companies and their executives, who face the prospect of steep fines and prison time,” Sisco and Nylen reported. “Neither the companies or their employees have been accused of any wrongdoing and probes don’t always lead to charges or lawsuits being filed. A previous investigation into alleged price-fixing during the Covid-19 pandemic closed without action.”

The Wall Street Journal’s Dave Michaels and Patrick Thomas reported that “a Justice Department spokeswoman declined to comment. A JBS spokeswoman said the company isn’t aware of any criminal investigation involving JBS and that it operates in a highly regulated industry, and is committed to complying with all applicable regulations. Tyson, Cargill and National Beef didn’t comment.”

“The probe follows a number of Trump administration initiatives aimed at tackling soaring beef prices that have had little effect so far,” Michaels and Thomas reported. “… A nationwide cattle shortage and continued strong demand have been driving up beef prices, according to industry officials and analysts. Meatpackers have been waiting for years for ranchers to rebuild the depleted U.S. cattle supply, which is at its lowest level since 1951. Beef prices for consumers and wholesalers are at record highs as a result, and are expected to stay high for at least the next few years.”

DOJ Also Considering Antitrust Lawsuit Against Egg Companies

The Wall Street Journal’s Dave Michaels and Patrick Thomas reported in a different article that “the Justice Department is preparing to file an antitrust lawsuit against some of the country’s biggest egg producers over allegations they coordinated pricing through an information service that benchmarks prices for the industry, according to people familiar with the matter.”

“The civil lawsuit would target major producers including Cal-Maine Foods and Versova, which significantly hiked egg prices in 2024 and 2025 due to a supply shortage attributed to avian flu,” Michaels and Thomas reported. “The competing producers share pricing information with Expana, a service that uses sales data to compile a benchmark price used by the producers.”

“An egg case, which could be filed as soon as next month, would show the Trump administration’s eagerness to focus its antitrust powers on food prices, even as it warms to dealmaking in other industries and looks to settle major cases inherited from the Biden administration,” Michaels and Thomas reported. “The Justice Department is separately investigating the markets for beef, fertilizer and crop seeds.”

“No final decision has been made on the egg case. The department and the egg producers could reach a settlement that avoids litigation, the people said,” according to Michaels and Thomas’ reporting. “The large egg companies declined to comment on the possible lawsuit. They have argued the price changes are a classic case of supply and demand, where limited supply and high demand lead to higher prices.”