CHEYENNE, Oklahoma – Cattle prices have dropped while the cost of beef to consumers keeps rising and some congressmen want to know why.
U.S. Rep. Frank Lucas, R-Oklahoma, joined U.S. Rep. Michael Guest, R-Mississippi, and U.S. Rep. Darren Soto, D-Florida, in sending a bipartisan letter to Attorney General Merrick Garland requesting the U.S. Department of Justice (DOJ) provide updates or a final report to Congress on the DOJ’s investigations into anticompetitive conduct within the beef industry.
Cattle producers in Oklahoma and across the country have continued to experience volatile livestock markets driven by supply chain disruptions and labor challenges driven by the COVID-19 pandemic and a consolidated beef market.
In May of 2020, the Department of Justice launched investigations into the four largest meatpackers in the United States to examine if anticompetitive market-distorting practices led to price disparities between live cattle prices and wholesale beef.
“We understand that a thorough investigation can take many months, but it concerns us that farmers, ranchers, and the packers themselves have all been left with little direction since the CIDs were issued,” the letter stated. “As you may know, the price for live cattle in the United States has decreased in the last several years, forcing many small operators to make difficult decisions as they strive to stay in business and keep their farms operational. Yet, at the same time, the price of boxed beef has increased significantly, raising consumer prices and widening the gap between live cattle prices, which is a concern for ranchers and consumers alike.”
This was made worse by the coronavirus pandemic and labor shortages in processing plants.
Since the Holcomb, Kansas, fire and throughout the coronavirus pandemic, Lucas has worked to provide support for Oklahoma’s cattle ranchers.
In June of 2020, USDA released its analysis of beef market conditions. While the report was helpful in looking for policy solutions and reforms, Lucas said that ongoing DOJ investigations could shed more light on the market’s volatility.
In July 2020, Congressman Lucas and former Agriculture Committee Chairman Collin Peterson, R-Minnesota, introduced a bill which would establish a grant program to help small meat processors make improvements necessary to meet federal food safety standards and bolsters the meat supply chain.