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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Investigations into Disparity Between Producer and Retail Beef Prices

04/05/2020

A number of beef-state members of Congress are calling for inquiries into the low price paid to farmers for cattle compared to the disproportionate retail price. Senator Chuck Grassley [R-IA] noted “Beef is flying off grocery shelves, but farmers are seeing prices go down. If packers are illegally manipulating markets during the crisis, we need USDA, DOJ, and CFTC to investigate and help farmers.”

 

Senators Mike Rounds [R-SD]; Steve Daines [R-MT]; John Hoven [R-ND]; and Kevin Cramer [R-ND] have addressed a joint letter to the department of justice requesting an investigation into allegations of price fixing and to establish that the beef packing industry is in compliance with antitrust law given that four companies control 80 percent of the market.

Cattle futures have dropped significantly, partly in fear that plants will close as a result of COVID-19 outbreaks among workers.  Production in some plants is slower than normal due to non-availability of workers attributed to delays in obtaining visas.  The current situation is exacerbated by closure of a JBS plant in Pennsylvania as a result of COVID-19.


 
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