USDA to investigate beef price surge amid pandemic

The United States Department of Agriculture (USDA) has decided to probe the increasing beef prices and falling cattle prices for farmers amid the coronavirus (Covid-19) crisis.

It was announced by the US Agriculture Secretary Sonny Perdue.

According to Reuters, the investigation will focus on meat companies, including Cargill and Tyson Foods, which hold a significant market share in the US beef processing segment.

The investigation will expand a probe the USDA launched into the beef market in August after a fire that shut a Tyson Foods plant in Holcomb, Kansas, sent beef prices soaring and tanked cattle prices.

The plant was shut down by the company indefinitely after the incident and cleaning works were initiated at the site.

In an email statement, Tyson Foods said: “During the current pandemic and following the fire at our Holcomb, Kansas, 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.”

However, Cargill did not comment on the latest move by USDA.

USDA’s decision was welcomed by cattle producers and organisations such as National Cattlemen’s Beef Association (NCBA) in the US.

NCBA president Marty Smith said: “I would like to thank President Donald Trump and Agriculture Secretary Sonny Perdue for their quick response to NCBA’s request to expand the agency’s investigation into cattle markets.

“Secretary Perdue’s decision to examine market reactions surrounding the Holcomb fire and the spread of Covid-19 in the United States will help restore the confidence of cattle producers in the market.

“We also look forward to the agency’s recommendations about improvements the industry can make to its markets, improvements that will ensure we have the fair and functioning markets that are so vital to cattle producers.”