CHICAGO, April 9 ― The US Agriculture Department will investigate why a surge in beef prices due to coronavirus hoarding did not translate into higher cattle prices for farmers, Agriculture Secretary Sonny Perdue said yesterday.
The investigation adds scrutiny on the small group of meat companies like Tyson Foods Inc and Cargill Inc that dominate US beef processing.
“This is a good decision to address potentially unfair practices,” US Senator Deb Fischer of Nebraska said on Twitter.
The investigation will expand a review USDA launched into the beef market in August after a fire at a Tyson Foods plant in Holcomb, Kansas, sent beef prices soaring and tanked cattle prices. The agency has not released the results of the investigation that began last year.
“USDA's Packers and Stockyards Division will be extending our oversight to determine the causes of divergence between box and live beef prices, beginning with the Holcomb Fire in KS last summer and now with Covid-19,” Perdue said in a tweet.
US senators last month asked the Justice Department to investigate whether meat packers engaged in price-fixing during the coronavirus pandemic.
The National Cattlemen's Beef Association, an industry group, separately called for USDA to work with the Justice Department to investigate whether “inappropriate influence occurred in the markets.”
Tyson Foods and Cargill did not immediately respond to requests for comment. They have previously said they rely on farmers to supply cattle and want them to do well. ― Reuters
