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USDA launches investigation into beef pricing margins

The USDA says it is launching an investigation into recent beef pricing margins in the wake of the Kansas beef plant fire.

Ag Secretary Sonny Perdue says the agency wants to determine if there is any evidence of price manipulation, collusion or restrictions of competition.

USDA Under Secretary for Marketing and Regulatory Programs Greg Ibach tells Brownfield the disparity between boxed beef and live cattle prices is a concern.

“We’ve seen more cattle go through the harvest process in the last two weeks than we saw previous to the Kansas fire. So that shows me that the industry is figuring out how to adapt and move cattle around,” Ibach says. “But that doesn’t negate the fact that we’ve seen beef prices go up at the same time we’ve seen live cattle or fed cattle prices go down.”

Ibach says if any unfair practices are detected, USDA will take quick enforcement action.

“We will go through and enforce our statutes, and notify the Department of Justice if necessary,” he says.

Ibach says the investigation will take some time. He would not say if they have identified any specific illegal activities.