Commissioner Quarles, Attorney General Cameron author joint letter asking DOJ to investigate alleged price fixing in cattle industry
FRANKFORT, Ky. — Kentucky Attorney General Daniel Cameron and Ag Commissioner Dr. Ryan Quarles co-signed a letter sent today to United States Attorney General William Barr requesting that the Department of Justice investigate “anticompetitive” practices in the beef-packing industry.
In the letter, they note that while consumer demand for beef has not lessened, prices have declined. Traditionally, this would suggest possible market manipulation and other “anticompetitive” practices. Kentucky consumers are paying more for beef and farmers are making less as a result.
“As Kentucky and the nation move towards reopening the economy in a quick and responsible manner, consumers and farmers deserve to know if there is a scheme to threaten market competition in the beef industry,” said Commissioner Quarles. “Our beef cattle producers have seen 30 and 40 percent price drops since the start of the coronavirus pandemic, even while the price of beef products at the grocery store has increased. I would like to thank Attorney General Cameron for joining me in this effort to make sure the beef industry isn’t rigged against Kentucky’s 38,000 hardworking cattle producers.”
“We’re urging DOJ to use the resources at its disposal to fully investigate allegations of anticompetitive practices in the beef processing sector, and we stand ready to assist with such an investigation in any way possible,” said Attorney General Cameron. “Kentucky’s cattle producers and consumers already face incredible economic challenges as a result of the COVID-19 pandemic, and we must ensure that they are treated fairly in the marketplace and do not face additional hardship because of price fixing or other anticompetitive actions. I appreciate Commissioner Quarles partnering with us in this endeavor.”
The continuing Covid-19 pandemic has led to problems at processing plants and supply chains, and created shortages nationwide. Because there are only four beef processors, and those four control 80 percent of the American cattle market, these problems amplify pre-existing disparities between the cost of live cattle and that of processed beef on the wholesale market.
“On behalf of Kentucky’s beef cattle producers in the Commonwealth of Kentucky, let me be the first to express my gratitude for the leadership of Agriculture Commissioner Quarles and Attorney General Daniel Cameron,” said Dave Maples, executive director of the Kentucky Cattlemen’s Association. “Kentucky is the largest beef cattle state east of the Mississippi River, and both of these men understand the negative effects of any possible anticompetitive business practices on both consumers and our producers.”
Commissioner Quarles and Attorney General Cameron asked to Department of Justice to use their investigatory resources to perform an in-depth market study to determine if “anticompetitive” practices are in use. Both offered the resources of their offices to assist.consumers.
To read a copy of the letter, click here.
