UPDATE: On Wednesday, May 6, President Donald Trump said he was asking the U.S. Department of Justice to investigate the growing spread between the price of live cattle and the price of beef.

Eleven state attorneys general on May 5 sent a letter to US Attorney General William Barr asking for the US Department of Justice to examine possible anti-competitive behavior by beef meatpackers.

The letter says, “We urge the United States Department of Justice (“DOJ”) to investigate the state of competition in this industry and the dynamics that are depriving cattle ranchers and American consumers of the benefits of a competitive cattle industry.”

The AGs further say, “We are specifically asking the DOJ to lead a thorough examination of the competitive dynamics of this industry. Even if, after investigation, there is no appropriate enforcement action that can be pursued, we would suggest that regulatory strategies should be explored to promote competition, address market manipulation, and protect consumers.”

“The DOJ is in the ideal position to lead such an effort,” the letter says. “States Attorneys General are ready to support this critical endeavor and our request for DOJ action here does not suggest a lack of interest by any of our states in conducting our own inquiry to protect its local markets. To the contrary, this request reflects our awareness of the nationwide significance of this issue and interest in collaborating with you on this important issue.”

Related:Cattle orgs request DOJ investigation

The letter is signed by the attorneys general from Arizona, Colorado, Idaho, Iowa, Minnesota, Missouri, Montana, Nebraska, North Dakota, South Dakota and Wyoming.

The AGs note several recent trends in their letter, including the disparity between the price of fed cattle and the retail cost of boxed beef sold to consumers, and the fact live cattle futures recently experienced deep declines, while the price of boxed beef and consumer demand remain healthy. They suggest these are “signs of a market that lacks full and fair competition.”

The AGs also said packer concentration and the threat of increasing consolidation gives them concern that beef processors are well positioned to coordinate their behavior and create a bottleneck in the cattle industry, to the detriment of ranchers and consumers alike.