COVID-19 increases concern over market manipulation

DES MOINES, IOWA (May 5, 2020) — Attorney General Tom Miller and a bipartisan group of attorneys-general from 10 other states urge the Department of Justice to pursue a federal investigation into suspected national price-fixing by meat-packers in the cattle industry.

In a letter to US Attorney General William Barr, the attorneys-general expressed concern over the likelihood of manipulation of the market for processed beef. The four largest meat-packing companies control more than 80% of the beef processing in the United States. The shelf price of beef is exceptionally high, while cattle prices are low and continue to dive. The concern over market-manipulation has increased with beef prices reaching record levels as consumers stockpile meat in response to the COVID-19 pandemic, but cattle prices remain low and are decreasing.

The attorneys-general say the pricing margins are a sign that meat -packers are using their ability to control the market for processed beef and take advantage of the situation in a manner that could violate the federal antitrust law. In addition to harming cattle producers, this potentially-illegal practice hurts consumers nationwide, many of whom are themselves struggling because of loss of employment and reduced incomes.

The attorneys-general believe the situation warrants a full federal investigation because the alleged anticompetitive conduct harms consumers and cattle ranchers across the United States.

“We are specifically asking the Department of Justice to lead a thorough examination of the competitive dynamics of this industry,” the letter says. “Now, more than ever, we need to dedicate our collective resources to promote competition and protect consumers.”

In addition to Iowa, the states signing the letter were Arizona, Colorado, Idaho, Iowa, Minnesota, Missouri, Montana, Nebraska, North Dakota, South Dakota, and Wyoming.

Support the River Cities' Reader

The QCA’s Only Free Press Can Really Use Your Support

 

"We're the River Cities' Reader, and we've kept the Quad Cities' only independently owned newspaper alive and free since 1993. Now we find our ability to continue providing all the features you love in serious jeopardy without the financial support of our readers.

So please help the Reader keep going with your one-time, monthly, or annual support. With your financial support the Reader can continue providing uncensored, non-scripted, and independent journalism alongside the Quad Cities' area's most comprehensive cultural coverage." - Todd McGreevy, Publisher