DOJ probes meatpackers

Federal prosecutors are conducting a criminal antitrust investigation into the biggest U.S. beef processors over how cattle and beef prices were set. (reuters.com) The companies at the center of the reporting are Tyson Foods, Cargill, JBS USA and National Beef Packing Co., which together slaughter about 85% of U.S. grain-fed cattle. The Wall Street Journal and Bloomberg reported that Justice Department lawyers are examining whether they reached illegal agreements in cattle purchasing and pricing. (reuters.com) (bloomberg.com) The inquiry appears to have escalated from a civil review disclosed after President Donald Trump called for action in late 2025 to a criminal probe in recent months. Reuters reported on April 20 that the Justice Department did not comment. (reuters.com) (wsj.com) Criminal antitrust cases are the Justice Department’s most serious cartel cases, used for alleged price-fixing, bid-rigging and market-allocation schemes. The Antitrust Division says those cases can bring corporate fines and prison time for individuals. (justice.gov) (hoodline.com) The timing overlaps with a supply crunch that has already pushed beef costs higher. The U.S. Department of Agriculture said the national cattle herd stood at 86.2 million head on Jan. 1, 2026, down from 86.5 million a year earlier. (usda.gov) That herd is the smallest in 75 years, according to farm and industry analyses of the USDA report, and futures markets have reacted accordingly. CNBC reported live cattle futures hit $2.51 a pound in mid-April, a record in data going back to the 1960s. (fb.org) (cnbc.com) At the grocery store, consumers are already seeing the squeeze. Bureau of Labor Statistics price data published through the St. Louis Fed show average U.S. ground beef prices at about $6.70 a pound in March 2026. (fred.stlouisfed.org) That is why this case is harder to read than a simple “prices went up, so someone cheated” story. Even without collusion, drought, feed costs, herd liquidation and tighter cattle supplies can lift ranch-level, wholesale and retail beef prices at the same time. (usatoday.com) (ers.usda.gov) The industry has faced antitrust claims before. Ranchers sued the same four companies in 2019 alleging they suppressed cattle prices, and JBS reached an $83.5 million settlement in that case in 2025 without admitting wrongdoing. (nfu.org) (beefmagazine.com) A separate consumer case over boxed and case-ready beef also produced settlements, including a combined $87.5 million deal with Tyson and Cargill approved preliminarily in December 2025. Those civil cases did not establish criminal liability, but they gave federal investigators and private plaintiffs years of market records to scrutinize. (beefdirectpurchasersettlement.com) (classaction.org) If prosecutors bring charges, the next fight will turn on whether they can separate normal scarcity pricing from illegal coordination in a market dominated by four firms. Until then, the same beef aisle reflects two facts at once: cattle are scarce, and the government is testing whether competition was too. (bloomberg.com) (reuters.com)