11 state attorneys general call for U.S. DOJ investigation into suspected price fixing by meat packers in cattle industry

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The letter echoed claims that have been circulating for years, which accuse the United States' top four meat processing companies of manipulating market prices to producers' and consumers' disadvantage.

"With such high concentration and the threat of increasing consolidation, we have concerns that beef processors are well positioned to coordinate their behavior and create a bottleneck in the cattle industry—to the detriment of ranchers and consumers alike," it stated, referencing potential for price-fixing, where companies agree to maintain a firm selling price for a particular product market-wide, and other unlawful practices to pay less for cattle supply from ranchers.

"During an economic downturn, such as that caused by the current pandemic, firms' ability to harm American consumers through market manipulation and coordinated behavior exacts a greater toll, providing an additional reason for conducting a careful inquiry into this industry," the letter continued, adding,"Now, more than ever, we need to dedicate our collective resources to promote competition and protect consumers.

 

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