Wyoming’s U.S. senators on Tuesday joined a bipartisan call for a U.S. Department of Justice investigation into alleged anti-competitive practices in the nation’s beef packing industry.
U.S. Sens. Mike Enzi and John Barrasso joined 17 of their colleagues in signing a letter to Attorney General William P. Barr asking for the Justice Department to look into allegations of price manipulation and anti-competitive behavior in the cattle industry.
Ranchers have long complained that because four major companies control more than 80 percent of the cattle industry, those companies in effect control the industry and keep prices paid to ranchers for their beef artificially low.
The letter said recent price differences between the amount received by beef packers and the amount they pay ranchers are threatening the survival of cattle ranches.
“Cattlemen across America seriously question the ability for their children to take over what are frequently multi-generational family-owned operations that serve as the engines for their communities and our country’s food supply,” the letter said. “It is critical for the DOJ to act expediently to investigate these concerning circumstances.”
The letter noted that since February, the price paid to producers for cattle has dropped by more than 18%, while wholesale beef prices have increased by as much as 115%.
Without action, America’s beef supply chain could collapse under the weight of poor prices, the letter said.
“It is critical for the DOJ to act expediently to investigate these concerning circumstances and evaluate potential competitive harms,” it said.
Eleven state attorneys general have also asked for investigation, as have a number of individual senators.
