Trump's DOJ Expands Beef Price Probe to Walmart, Costco, Amazon and 5 Other Retail Giants — Calls it a 'Critical Concern'

The Department of Justice (DOJ) has extended the federal government’s scrutiny of rising beef prices to the retail level of the food supply chain. 

The retailers now under investigation include Kroger, Publix, Walmart Inc. (NASDAQ:WMT), Albertsons, Aldi, Ahold Delhaize, Costco Wholesale Corporation (NASDAQ:COST), and Amazon.com Inc. (NASDAQ:AMZN).

Associate Attorney General Stanley E. Woodward Jr. has dispatched letters to these companies concerning “recent increases in the retail price for beef,” as per the Justice Department.

The DOJ emphasized that beef prices are a “critical concern to Americans, and a priority for this Justice Department.”

Kroger, Publix, Walmart, Albertsons, Aldi, Ahold Delhaize, Costco and Amazon did not immediately respond to Benzinga’s request for comments.

DOJ Probes Beef Industry Concentration

This development follows a DOJ investigation into potential antitrust violations in the beef market that was publicly confirmed in May. The probe was aimed at examining whether meatpacking industry concentration has contributed to soaring prices.

During July, 100% ground beef prices averaged $6.89 per pound, up about 10% year over year, according to the latest BLS data.

Officials said the four largest processors — JBS (Brazil), Cargill, Tyson Foods (NYSE:TSN), and National Beef control more than 85% of the market and have reviewed over 3 million documents. DOJ is seeking whistleblowers to report potential price-fixing, bid-rigging, market allocation or procurement fraud.

Trump’s Beef Push Draws Backlash

In August, President Donald Trump attempted to lower beef prices by expanding lower-tariff beef imports. Trump later said he would move to give farmers and ranchers the legal right to process their own meat, aiming to challenge the meatpacking industry’s dominance.

The proposal comes amid farm-country backlash over his decision to allow more foreign beef imports. GOP Congressman Troy Downing warned that Trump’s beef import policy could destabilize the market for U.S. ranchers.

In July, the Trump administration rolled out a $500 million support package for smaller meatpackers grappling with escalating beef prices due to a shortage of cattle supplies.

Photo courtesy: Shutterstock