PIERRE, S.D. – Attorneys General from 11 Midwestern states are urging the U.S. Justice Department to expedite a federal investigation into suspection national price fixing by meat packers.
South Dakota Attorney General Jason Ravnsborg says South Dakota is part of the group and says consumers and ranchers have been deprived of the benefits of a competitive cattle industry. He wants U.S. Attorney William Barr to look into the matter.
Ravnsborg says there’s disparity between liveweight cattle and the retail cost of beef.
“I think that show that the market is maybe lagging,” Ravnsborg says. “Doesn’t have full and fair competition. I don’t say at this point—and our letter doesn’t say at this point—that we have conclusive proof or anything, but that we need an investigation.”
He says investigators should look for anti-trust violations.
U.S. Senator Mike Rounds wants a similar investigation into the packing industry. He says some issues exacerbated the situation, like consumers who stocked up on beef before much of the country shutdown in response to the COVID-19 outbreak.
The letter from the attorneys general alleges that four packing plants control 80 percent of the cattle market. It suggests that even if enforcement action can’t be pursued, regulatory strategies should promote competition, address market manipulation and protect consumers.
James Halverson is the executive director of the South Dakota Stockgrowers Association. He told SDPB Radio that producers have been aware of the issue for some time.
“I just don’t think in any other industry you see that little competition and that little regulation,” Halverson says. “We’re all about a free market and a capitalist economy, but that is absolutely predicated on competition and fair markets. That’s why we have these anti-trust laws in place. We need them. We need them to be enforced.”
