Feds Are Investigating High Meat Prices in Louisiana and Texas
Will the Feds Investigate Meat Prices?
USDA Targets Grocery and Meatpacking Consolidation
How Do Meat Prices Impact Business?
SHREVEPORT, LA - It's been at least 2 months since I have bought any ribeyes at the grocery store. The best prices I could find for these juicy steaks is close to $15 dollars a pound. That's just too much. And beef prices are continuing to climb.
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Weekend BBQ's and family gatherings are changing what we are serving on the dinner table because of the high cost of meat. Families are struggling to keep up with the rising cost of groceries and meat is one of the primary drivers of that cost.
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Will the Feds Investigate Meat Prices?
The U.S. Department of Agriculture (USDA) is getting involved. The agency has launched an investigation to determine if price-gouging by some meatpackers and some grocery chains is driving up the costs for consumers.
USDA Targets Grocery and Meatpacking Consolidation
The USDA’s investigation focuses on the role industry consolidation plays in driving up beef prices. The meatpacking industry, largely controlled by a handful of powerful companies, has come under scrutiny for restricting supply to keep prices high.
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And the grocery business is not much different. It is dominated by only a handful of big companies. Those companies are suspected of artificially inflating prices which leaves smaller grocers with limited options for supplying fair prices meats to consumers.
Texas is one of the largest producers of beef in the U.S., but residents are still paying max prices in the butcher section. There have been numerous complaints about price fixing at some of the higher levels in the meat supply chain.
How Do Meat Prices Impact Business?
Restaurants are struggling to keep serving meat-based dishes. These owners have limited choices. They can either raise prices for the consumers, or risk losing customers by changing menus to include less expensive meat options.
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When Could We See Some Relief on Meat Prices?
This USDA investigation is expected to take a close look at the behavior of meatpacking giants and the big grocery chains. The feds are trying to determine is there has been a concerted effort to keep prices high for the consumers. This investigation could lead to more oversight in the meatpacking industry.
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