The U.S. Justice Department is investigating meatpacking companies for possible antitrust violations, according to a person familiar with the matter, as the industry comes under scrutiny over plant shutdowns that have disrupted the supply of meat, reports BloombergQuint.
The antitrust probe is in the early stages and began before the coronavirus outbreak spread across the U.S., said the person, who declined to be named because the investigation is confidential.
Meatpacking is highly consolidated with four companies -- Tyson Foods Inc., JBS SA, Cargill Inc. and National Beef Inc. -- controlling about 80% of the U.S. beef processing market.
Meat packer margins have surged in the last month amid the plant closures, as beef prices rose and cattle prices stayed low.
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