The U.S. Department of Justice plans to settle its case against agricultural data firm Agri Stats, White House adviser Peter Navarro said on Monday. DOJ plans settlement is being presented as part of a broader law enforcement push aimed at lowering consumer food costs, Navarro said, while the government prepares for courtroom action later this month. The DOJ has accused Agri Stats’ weekly pricing and sales reports of enabling coordinated, anti-competitive behavior in several meat sectors.
Agri Stats has called the DOJ’s claims baseless and maintains that its benchmarking services help produce lower prices for buyers, the company has said. A company representative did not immediately respond to requests for comment on the prospect of a settlement. The department has said the matter was headed for trial this month before the announcement of settlement plans.
The White House adviser framed the move in the context of consumer affordability concerns, noting the administration’s recent emphasis on stemming rising living costs. Officials say high grocery and meat prices have become a political and economic priority and that enforcement actions are one tool to address them.
Meat-packing probe
Acting Attorney General Todd Blanche told reporters the DOJ will use every available enforcement tool in its ongoing probe of the meat-packing industry. Prosecutors have reviewed more than 3 million documents and conducted numerous interviews as part of that wider investigation, Blanche said, and he urged potential whistleblowers to come forward and consider claiming financial awards for actionable information.
Blanche said multiple plant closures, the current market structure and high industry concentration were among the indicators pointing to anti-competitive activity, though he did not name specific firms tied to those concerns. The DOJ’s inquiry sits alongside private litigation alleging collusion to restrict supply and inflate prices in U.S. meat markets.
Major meatpackers Tyson Foods, Cargill, JBS USA and National Beef slaughter roughly 85% market share of U.S. grain-fattened cattle that become beef cuts sold at retail, the DOJ statement noted. The four companies have denied wrongdoing; Tyson, Cargill and JBS have agreed to pay tens of millions of dollars to settle some private claims, and spokespeople for the firms did not immediately respond to questions on Monday.
Potential impact
Navarro said the anticipated settlement with Agri Stats is intended to reduce pricing opacity and weaken tools that prosecutors contend allowed coordinated conduct in chicken, pork and turkey markets. The DOJ characterizes continued investigation and enforcement against both data providers and packers as central to its effort to address high food prices. The case was scheduled to go to trial this month before settlement discussions were announced.
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