Why Is Beef So Expensive in America? DOJ Expands Price Probe to Walmart and Amazon

The U.S. Department of Justice expanded its antitrust investigation into high beef prices on Sept. 2, adding eight major grocery retailers, including Walmart, Amazon and Costco, to its scrutiny of the beef supply chain.

Associate Attorney General Stanley E. Woodward Jr. sent letters seeking information on beef pricing and purchasing practices from Amazon, Costco, Walmart, Albertsons, Kroger, Ahold Delhaize USA, Publix and Aldi.

The U.S. Bureau of Labor Statistics’ average price data shows ground beef was priced at $6.89 per pound, representing a 10.1% increase from July of last year. The overall beef and veal group rose 9.4% in the 12 months to July.

DOJ Expands Beef Probe From Meatpackers to Retailers

The retail inquiry expands an investigation that began with the country’s largest beef processors. The Justice Department has been examining potential antitrust violations involving JBS, Cargill, Tyson Foods and National Beef, which the administration has said account for about 85% of U.S. beef processing.

The new letters shift part of the federal government’s focus to the retail end of the supply chain. Investigators are seeking information covering the past six years, including retailers’ beef purchasing and pricing strategies, profit margins, wholesale costs, market analysis and arrangements with meatpackers.

“The Antitrust Division is assessing trends in beef prices, a matter of critical concern to the American public, and a priority for the United States Department of Justice,” Woodward wrote in identical letters addressed separately to each company.

The investigation itself does not establish that the retailers violated antitrust law. The Justice Department is seeking information to assess pricing and market conditions.

Why Beef Prices Remain High

The investigation comes as the U.S. cattle supply remains constrained. As of Jan. 1, 2026, the USDA’s National Agricultural Statistics Service reported that there were 86.2 million cattle and calves in the U.S. on farms, of which 27.6 million were beef cows. The overall inventory stood 1% lower than last year, and the beef-cow inventory was 1% lower.

The cattle cycle also serves as a restraint on the ability of producers to respond quickly to higher prices. It will take years to rebuild herds as extra breeding cattle must be kept for future beef production.

Drought has compounded those pressures through pasture scarcity and feed costs, driving herd reductions in some cattle-producing regions.

“The cattle shortage will likely keep beef prices elevated well into 2027,” Sylvain Charlebois, a professor of food distribution and policy at Dalhousie University, told Newsweek in mid-August.

The supply constraints help explain why beef prices can remain high even when some other grocery categories show slower inflation. In July, the overall food-at-home index rose 2.7% from a year earlier, while beef and veal prices increased 9.4%.

Tyson Settlement Adds to Scrutiny

The DOJ’s expanded inquiry also follows legal action involving the meatpacking industry.

Tyson Foods agreed to pay $82.5 million to settle a proposed class-action lawsuit that accused the company of conspiring to restrict beef supplies and inflate prices.

The Justice Department’s investigation remains separate from the private litigation.

Trump Administration Targets Beef Affordability

The beef investigation dates back to Nov. 7, 2025, when President Donald Trump directed the Justice Department to investigate major meatpacking companies over potential collusion, price fixing and price manipulation.

The White House said at the time that the four largest meatpackers accounted for about 85% of U.S. beef processing. The administration has also taken steps aimed at increasing beef supplies through imports.

In November 2025, the White House removed beef from certain reciprocal tariffs on qualifying agricultural products.

Trump has signed a proclamation in August increasing the in-quota quantity for certain lean beef trimmings by 300,000 metric tons for 2026. The additional quota is being released in three 100,000-metric-ton tranches beginning Sept. 1.

The policy is intended to increase supplies of lean beef trimmings used to produce ground beef while the domestic cattle herd remains constrained.

What the Retail Investigation Could Show

The expanded investigation could help the Justice Department determine how much of the increase reaching consumers reflects higher costs elsewhere in the beef supply chain and how much may be associated with retail pricing and margins.

The higher retail prices can result from multiple factors, including cattle availability, feed and processing costs, transportation, wholesale prices and retailer margins.

The DOJ has not announced a finding that any of the eight retailers engaged in unlawful conduct.

As federal investigators review data from the retailers, the direction of cattle inventories and future beef supplies will remain central to the outlook for prices.