The USDA will be investigating why the surge in beef prices from coronavirus stockpiling did not also result in higher cattle prices.
The investigation is an expansion from looking into effects of the Kansas packing plant fire from last August, where beef prices soared and cattle prices tanked.
“During the current pandemic and following the fire at our Holcomb, KS, facility last August, we have taken steps to minimize the impact each situation had on our producers, production volume and our ability to cover customer needs,” Tyson said in a statement.
The National Cattlemen’s Beef Association called for the USDA to work with the Justice Department to determine whether price-fixing occurred from the coronavirus pandemic.
“USDA’s Packers and Stockyards Division will be extending our oversight to determine the causes of divergence between box and live beef prices, beginning with the Holcomb Fire in Kansas last summer and now with COVID-19,” Agriculture Secretary Perdue announced on Twitter.
