Texas Attorney General Ken Paxton has launched an investigation into the beef industry over potential anticompetitive conduct among the nation’s largest meatpackers.
Paxton said he will work alongside the U.S. Department of Justice, which also announced an antitrust probe to protect the nation’s beef supply chain.
The beef meatpacking industry is highly concentrated, with four companies – JBS S.A., Tyson Fresh Meats Inc., Cargill Inc. and National Beef Packing Co. – which control over 85% of the nation’s beef processing market. Paxton’s office says this level of consolidation has given these corporations significant market power over both cattle producers and consumers.
According to reports, these firms may have used their dominance to decrease the prices paid to cattle ranchers while simultaneously driving up beef prices for consumers. These four firms have reaped enormous profits at the expense of Texas cattle ranchers and consumers nationwide.
“Texans deserve fairly priced beef and our state’s cattle ranchers deserve to be paid fairly for their hard work,” Paxton said. “If major meatpackers manipulated the market to underpay ranchers while forcing families to pay higher prices at the grocery store, we will hold them accountable.
My office will aggressively investigate any violations of antitrust law to protect fair competition, ranchers and Texas consumers.”
Attorney General Paxton encourages industry participants with concerns about potential antitrust violations, including price fixing or market manipulation, to contact his office at [email protected].
