Letter to the Hon. Merrick Garland, Attorney General - Grassley Joins Colleagues In Urging Department Of Justice To Continue Investigation Into Beef Industry
Letter
Dear Attorney General Garland:
We want to bring to your attention our concerns with potential instances of improper and
anticompetitive activities in the live cattle and beef industry. Nearly a year ago, on May 22, 2020,
the U.S. Department of Justice (DOJ) Antitrust Division sent civil investigative demands (CIDs) to
the nation's four biggest meatpackers. Since that time, the American people have seen no public
results from the investigation. In fact, there is no information to even suggest whether the
investigation has concluded or is still ongoing. Due to the change in leadership at DOJ since these
CIDs were issued and the new allegations of anticompetitive activities since that time, we
encourage the Antitrust Division to continue its civil investigation of these entities. Additionally, to
the extent allowed by statute, we request that DOJ provide Congress updates on any investigations
or ongoing vigilance.
Cattle producers have faced significant challenges over the last few years. In 2019, a fire at a single
beef plant in Kansas, a facility that accounted for approximately 6 percent of our nation's beef
processing capacity at the time, created significant market disruptions. In 2020, the COVID-19
pandemic-related plant closures led to additional processing capacity shortfalls and supply chain
disruptions throughout the country. It appears plant labor shortfalls remain an issue today. While
black swan events do not always prove wrongdoing, additional attention can reinforce confidence in
the system.
Cattle producers, especially small feeders, are again experiencing difficult conditions that are
threatening their ability to stay in business. With a tight supply chain, any changes in processing
capacity can have a dramatic impact on cattle prices, preventing producers from capturing margin
from boxed beef rallies.
It is critically important that producers have fair and transparent markets for the commodities they
produce. We urge the DOJ Antitrust Division to continue vigilance and where possible, provide
updates of findings.
Thank you for your prompt attention to this request
Source