"Something isn’t right": U.S. probes soaring beef prices

“It’s evidence that something isn’t right in the industry,” said Sen. Chuck Grassley, an Iowa Republican who has spoken out against mergers in the agriculture industry. In April, Grassley requested federal investigations into market manipulation and unfair practices within the cattle industry. So have 19 other senators and 11 state attorneys general.

The average retail price for fresh beef in April was $6.22 per pound — 26 cents higher per pound than it was the month before, according to the Bureau of Labor Statistics. At the same time, at the end of April, the average price for a steer was below $100 per hundred pounds; the five-year average for that same week was about $135 per hundred pounds, according to USDA’s weekly summary.

Ed Greiman, general manager of Upper Iowa Beef who formerly headed the Iowa Cattlemen’s Association, attributed the consumer price increase to plants running at lower capacity. At the same time, farmers and ranchers desperate to offload their cattle as they reach optimal weight for slaughter are cutting prices so they won’t have to kill the animals without selling them.