Beef prices are hovering near record highs. The U.S. Department of Justice is now investigating whether corporate consolidation is driving the increase.
A combination of factors has pushed meat prices up this year. These include the summer grilling season, smaller cattle herds, droughts, and wildfires.
Processing-plant closures and other supply disruptions have also contributed to the price surge. The DOJ wants to determine if anticompetitive behavior is a factor.
Federal investigators are looking into possible price fixing or market manipulation. The probe targets major meatpacking companies that control a large share of the beef market.
Cattle ranchers have long complained that a few processors dominate the industry. They argue this gives those companies too much power to set prices.
Consumer advocates say higher beef prices are hurting household budgets. The USDA reports that beef prices are up significantly compared to last year.
The investigation could lead to new regulations or legal action. For now, shoppers face continued uncertainty at the meat counter.
Industry groups deny any wrongdoing. They point to genuine supply chain challenges as the primary cause of rising prices.
The outcome of the DOJ probe remains unclear. It may take months or longer before any conclusions are reached.
