WASHINGTON (AP) — The Trump administration has reached a proposed settlement in an antitrust case against a data-sharing company for the meatpacking industry that the federal government had accused of helping drive up grocery prices.
Justice Department officials touted the deal in the case, initially brought by the Biden administration, as a victory in their effort to reclaim competitive prices in the meat industry and lower food costs for Americans.
Combating the drivers of high food costs, however, is challenging and the solutions aren't simple.
“A stable and affordable food supply is critical to our country’s well-being,” acting Attorney General Todd Blanche said in a statement. “This Department of Justice is laser-focused on making everyday life affordable for all Americans.”
The case targeted Agri Stats, an Indiana-based company that collects nonpublic information from meat processors and shares the data in detailed reports with the industry. The federal government alleged its practices allowed chicken, pork and turkey processors to inflate prices they charged restaurants, grocery stores and other buyers who were not allowed access to Agri Stats' data.
Under the proposed settlement, Agri Stats would be required to share with U.S. buyers most of the information it collects from processors, the Justice Department said.
Agri Stats' president said it was “pleased to put this case with the Department of Justice and six states behind us.”
“Agri Stats has been instrumental in the efficiency improvements in the chicken industry that have made such wonderful results possible, and we look forward to continue helping our subscribers improve their businesses, which will make chicken more affordable for all Americans,” Eric Scholer said in a statement.
The Justice Department is separately investigating potential antitrust violations in the beef processing industry. That followed a request from President Donald Trump to open an investigation into whether foreign-owned meat packers were driving up the price of beef in the U.S.
U.S. beef prices have been climbing steadily since 2020 and are near record highs. In March, a pound of ground beef averaged $6.70, or 16% higher than a year ago, according to government figures.
But there are many reasons for that, including drought and a shrinking herd size.
A three-year drought that began in 2020 left less grass for grazing across the U.S. and made feed costs soar. Dry weather has persisted; this spring, around 63% of the U.S. cattle herd is in drought areas, according to the USDA.
The U.S. cattle herd, which has been shrinking for decades, is now at its smallest size since 1951, according to the USDA. Thanks to changes in cattle genetics and feeding techniques, ranchers now get more meat from each animal than they used to. But they’re reluctant to increase herd sizes because of the high costs of feed and labor and the dry weather.
Another driver of high prices is the closure of the U.S.-Mexico border to livestock imports to slow the spread of a flesh-eating parasite called the New World screwworm. The closures that began in late 2024 have stopped about 1 million cattle from being hauled from Mexico into the U.S.
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Associated Press reporter Dee-Ann Durbin in Detroit contributed to this report.
