Agriculture
Commissioner Dr. Ryan Quarles and Attorney General Daniel Cameron
sent a joint letter Sunday to U.S. Attorney General William Barr
asking the Department of Justice (DOJ) to investigate possible
anti-competitive practices in the beef packing sector.
The
letter notes that, despite steady consumer demand for beef, the
prices paid to Kentucky’s cattle producers have declined, suggesting
the presence of possible market manipulation and other
anti-competitive practices. As a result, Kentucky consumers are
paying more for beef while hardworking Kentucky farmers are making
less.
The
ongoing COVID-19 pandemic has led to disruptions at meat processing
plants and created shortages nationwide. With only four beef
processors controlling 80 percent of the American market, such
disruptions further exacerbate pre-existing disparities between the
price of live cattle and the wholesale price of beef.
In the
letter, Commissioner Quarles and Attorney General Cameron ask DOJ to
use the department’s investigatory resources to conduct an in-depth
study of the current economic realities within the cattle industry to
determine if anti-competitive practices are being used. Both Quarles
and Cameron offer DOJ the resources of their respective offices to
assist with such an investigation on behalf of Kentucky consumers.
