Meat Shortage Update: States' Officials Seek Investigation Of Why Beef Is Getting More Expensive

Nearly a dozen state attorneys general and the National Cattlemen’s Beef Association are urging the Justice Department to investigate beef shortages and rising prices amid the coronavirus pandemic. Grocery stores are limiting consumer meat purchases in response to reduced supplies, and at least one fast-food restaurant chain has taken burgers off its menu.

The attorneys general for Colorado, Minnesota, Missouri, Montana, Arizona, Idaho, Iowa, North Dakota, Nebraska, South Dakota and Wyoming sent a letter to U.S. Attorney General William Barr, noting U.S. beef production is controlled by four companies: Cargill, National Beef, Tyson Foods and JBS.

“The U.S. beef processing market is highly concentrated, with the four largest beef processors controlling 80 percent of U.S. beef processing,” the letter sent Tuesday said. “In short, 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.”

The letter follows President Trump’s use of the Defense Production Act to keep meat process plants open. Plants shut down amid a wave of coronavirus infections, with one Smithfield pork processing plant in South Dakota reporting 800 worker infections and an Indiana Tyson plant reporting nearly 900 worker infections. Nearly two dozen plants have closed periodically since the pandemic began, cutting beef output by about 10%.

Kroger, the nation’s largest supermarket chain, put limits on consumer purchases, not only beef but pork and chicken, as well.

“We are asking our customers to shop responsibly and purchase what they need, knowing that we will continue to replenish stores daily,” Allison McGee, corporate affairs manager for Kroger Mid-Atlantic, said in a statement.

Ky-Vee, Costco and Giant Eagle also were among grocers announcing temporary purchase limits.

The shortages also are affecting fast-food restaurants. Wendy’s, which prides itself on using only fresh beef, has pulled beef burgers from its menu

Arizona Attorney General Mark Brnovich said Justice should collaborate with the states to protect consumers.

“In this current environment of food insecurity, rising unemployment and reduced income, it is more important than ever to ensure competition to protect food prices,” Brnovich said in a press release.

“These activities should be alarming to all cattle producers and consumers,” South Dakota Attorney General Jason Ravnsborg said in a press release, referring to declining cattle prices and rising shelf prices. “A federal investigation is warranted to protect consumers and promote competition in the marketplace.”

The cattlemen’s association last month asked for a federal investigation of the disparity in price between boxed beef and cattle prices.

“The market woes for cattle producers will only grow if packing plants shut down or slow down for an extended period,” association President Marty Smith said in a letter to Trump. “As cattle producers, we are the beginning of the beef supply chain, and we need continued vigilance and oversight of all cattle market participants – for the benefit of America’s cattle producers and all Americans.”