The federal investigation into high beef prices is expanding beyond meatpackers as the Department of Justice turns its attention to some of the nation’s largest grocery retailers.
The DOJ Antitrust Division has reportedly requested information from eight major retailers: Kroger, Walmart, Publix, Albertsons, Aldi, Ahold Delhaize, Costco and Amazon.
Investigators are examining how beef moves from the wholesale market to the retail meat case, including pricing practices, purchasing arrangements, costs and profit margins. The inquiry reportedly seeks information covering 2020 through 2026.
The expanded investigation comes as consumers continue paying substantially more for beef.
Federal inflation data show beef and veal prices in July were 9.4% higher than a year earlier. Ground beef increased 9%, steaks climbed 9.6% and beef roasts jumped 13.5%.
Tight cattle supplies remain a major factor behind those prices. Years of drought and herd liquidation reduced cattle numbers, while consumer demand for beef has remained strong. Rebuilding the nation’s cow herd also takes time, limiting how quickly additional domestic beef supplies can reach grocery stores.
The retailer inquiry adds another layer to the federal government’s examination of competition throughout the beef supply chain.
The Justice Department announced an antitrust investigation involving meatpacking operations in May. Federal officials have been examining whether concentration within the processing sector and other business practices have contributed to higher beef prices.
DOJ has also pursued competition issues elsewhere in the meat industry. In May, the department announced a proposed settlement with Agri Stats over allegations that competitively sensitive pricing, production and cost information was exchanged among major meat processors.
The latest retailer investigation does not itself establish wrongdoing by any of the companies involved. Investigators are gathering information as they examine what has driven the widening gap between cattle supplies, wholesale beef costs and prices consumers see at the grocery store.
For cattle producers, the investigation comes during an unusual market in which historically tight supplies have supported cattle values while record or near-record beef prices have intensified scrutiny throughout the supply chain.
With herd rebuilding expected to take years, beef prices and the forces behind them are likely to remain a major issue for producers, processors, retailers and consumers.
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