Rep. Cindy Axne (IA-03) led a letter to the Department of Justice (DOJ) requesting an update on its investigation into allegations of market manipulation by the nation?s four biggest beef packing companies.
Over the last few decades, the four largest beef packing companies have grown and consolidated from controlling roughly 25 percent of the market to over 80 percent of the nation?s cattle industry. During this time, around 17,000 ranchers have gone out of business each year and ranchers share of every dollar a consumer spends on beef has been reduced from around 60 cents in the 1970s to less than 40 cents per dollar today.
Two years ago, the DOJ reportedly sent civil investigative demands (CIDs) to the ?Big Four? companies, yet there has been no public status update on the investigation.
?It is absolutely imperative that consumers and producers can have faith in the cattle industry. While there are additional legislative solutions that should be pursued, the DOJ plays a vital role in protecting the interest of the public through enforcement of the Packers and Stockyards, Sherman, and Clayton Acts,? the Members wrote. ?A fair and thorough investigation must be conducted, but the lack of communication or acknowledgment of the investigation is causing concern and further casting doubt on the integrity of the markets.?
The letter was signed by Representatives Tom O?Halleran (AZ-01), Chellie Pingree (ME-01), Angie Craig (MN-02), Kim Schrier (WA-08), and Abigail Spanberger (VA-07).
Rep. Axne has been a consistent advocate for Iowa?s cattle producers. Earlier this year, Rep. Axne and Rep. Feenstra introduced the Cattle Price Discovery and Transparency Act to return fairness to the marketplace dominated by the four major meatpackers.
You can read the full text of the letter here.
