GOP Senator Calls on DOJ to Investigate Beef Consolidation
Senator Kevin Cramer is urging the US Department of Justice (DOJ) to accelerate its long-running investigation into potential anticompetitive practices among the nation’s largest beef packers—National Beef, Cargill, Tyson Foods, and JBS—citing renewed concerns over pricing power and market fairness.
The DOJ investigation was opened in March of 2020, but no action has been taken. The pressure to investigate anticompetitive practices has been mounting for years, and intensified during the COVID-19 pandemic; the recent discussions over importing more beef from Argentina have further heightened the tension. Cramer harnessed this renewed concern to put pressure back on the DOJ to pursue the investigation.
Cargill to Lay Off 80 Employees
Cargill recently announced that it will be permanently laying off 80 employees in Minnesota, as a part of a larger wave of job cuts globally. The layoffs, which are a part of a plan announced in 2024, are set to cut the company’s workforce by 5%.
The employees being laid off in Minnesota will be offered severance pay, according to a letter sent to the Minnesota Department of Employment and Economic Development. The layoffs come as many corporations announce workforce reduction.
JBS Sued Over “Net Zero” Claims
US advocacy group Mighty Earth has accused JBS Brazil of making false claims about its commitment to reaching net-zero emissions by 2040. The case, which was filed with the District of Columbia Superior Court in Washington, is the latest in a long list of cases against the corporation that allege “greenwashing.”
Mighty Earth claims that the net-zero claims are misleading because the company purposely omitted information about the environmental harm their operation causes, violating the DC Consumer Protection Procedures Act. JBS rejected the accusation, sharing the following in a statement: “Our actions are guided by science, transparency, and accountability, and we remain focused on delivering measurable, meaningful progress toward a more sustainable global food system.”
Tyson, Cargill Agree to Multi-Million-Dollar Settlements in Beef Price-Fixing Case
Tyson Foods and Cargill have agreed to pay a combined $87.5 million to settle a federal class-action lawsuit alleging they conspired to inflate US beef prices by limiting supply. According to court filings in late October in the US District Court for Minnesota, Tyson will pay $55 million and Cargill $32.5 million under preliminary settlements that still require a judge’s approval. The agreements mark the first consumer settlements in the beef price-fixing litigation, which began in 2019.
Plaintiffs’ attorneys estimate the class includes about 36 million consumers across 26 states and the District of Columbia who indirectly purchased beef products—such as chuck, loin and ribs—between August 2014 and December 2019 from retailers including Walmart and Costco. The retailers are not defendants in the case.
Under the settlement terms, Tyson and Cargill agreed to cooperate with consumers pursuing claims against the remaining defendants, JBS USA and National Beef Packing, which have denied wrongdoing. An expert for the plaintiffs estimated total consumer damages at $1.9 billion.