On Social Media Wednesday, Ag Secretary Sonny Perdue announced the USDA will investigate the large margin increases for meatpackers during the coronavirus outbreak. The Twitter announcement of the probe came after several members of Congress called for an investigation.


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Retail prices for beef surged following the virus outbreak while prices that processors pay for cattle dropped. According to the America Farm Bureau, the margin between the two more than doubled between late February and March 21st.

Dating back to last year’s fire a at packing plant in Holcomb, KS, many producers have alleged packers have made massive profits while retail beef demand remained tight and ranchers saw very low prices. Beef slaughter and process in the U.S. is highly concentrated and dominated by four companies.

Wednesday's announcement came shortly after the National Cattlemen’s Beef Association asked the USDA to further investigate the cattle and beef markets. NCBA President Marty Smith sent a letter to President Trump on the matter Wednesday.

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