Justice Department Issues Subpoenas to Beef-Processing Giants

The Justice Department is deepening federal antitrust scrutiny of the $213 billion U.S. meat industry, following complaints from farmers and meat buyers about industry pricing practices.
The department recently issued civil subpoenas to the four biggest beef processors, JBS USA Holdings Inc., Tyson Foods Inc., Cargill Inc. and National Beef Packing Co., according to people familiar with the matter. JBS and Tyson also are leading pork producers, and the department is seeking information on their activities in that market as well, some of the people said.
Justice Department officials and several state attorneys general held a call Thursday to discuss their shared concerns about competition in the meat industry and ways to cooperate, some of the people said.
Cargill and Tyson declined to comment. Representatives for JBS and National Beef didn’t respond to requests for comment.
The subpoenas come as federal antitrust enforcers separately conduct a criminal probe into chicken pricing. The Justice Department announced its first charges Wednesday, with four poultry industry executives indicted on charges they conspired for several years to rig bids and fix chicken prices.
The defendants include Jayson Penn, chief executive of Colorado-based chicken giant Pilgrim’s Pride Corp. He pleaded not guilty in an initial court appearance Thursday in Colorado. The company said it was cooperating with the Justice Department.
Cattle ranchers for months have called on federal authorities to probe the companies that control the U.S. beef industry. Slaughtering and processing of cattle is heavily concentrated, with JBS, Tyson, Cargill and National Beef together controlling 73% of processing capacity, according to Cattle Buyers Weekly, an industry publication...

Wall Street Journal