The U.S. government is expanding its investigation into the rising price of beef to eight major grocery chains and big box retailers.
The current average price for ground beef was $6.88 per pound, as of July, according to the Federal Reserve Bank of St. Louis (FRED). That number is up from $3.88 per pound in January 2020, according to the Bureau of Labor Statistics.
In a post on X, The Department of Justice (DOJ) said Associate Attorney General Stanley E. Woodward, Jr.] had sent letters to Kroger, Publix, Walmart, Albertsons, Aldi, Ahold Delhaize USA, Costco, Amazon, explaining: “Beef prices are a critical concern to Americans, and a priority for this Justice Department.”
Those letters, which Woodward Jr. sent in July, requested detailed information about how the companies were pricing beef, including wholesale purchases and prices, plus costs and margins, per Newsweek.
These requests expand upon the DOJ’s original investigation into the meatpacking industry and beef prices, announced in May, which began with a probe into three companies that control a majority of meat processing market: Cargill, Tyson Foods, and the primarily Brazilian-owned JBS and National Beef, Forbes reported.
“I don’t want to prejudge the investigation,” Woodward Jr. told Fox Business on Thursday. “We are not accusing any of them of any wrongdoing, what we want to do is understand how did these beef prices got so high.”
When asked if it is a question of supply and demand, as opposed to price gauging, the Assistant Attorney General said, “We are of course accepting of supply and demand, but if the reason the prices are so high is because the supply is so low, then they should be able to show that relatively easily . . . I am not sure that is what we will find.”
Over the last few years, the price of food has skyrocketed, along with overall cost of living in the United States, including the price of gas, home prices, and inflation, leading to the current affordability crisis.
