If you’ve noticed higher prices in the meat department lately, you’re not imagining it. Beef prices have climbed sharply, and now some of the country’s largest grocery retailers—including Costco, Walmart and Aldi—are being asked to explain how they set their prices.
The U.S. Department of Justice has expanded its beef industry investigation to include eight major retailers: Costco, Walmart, Aldi, Amazon, Kroger, Publix, Albertsons and Ahold Delhaize, the parent company of Stop & Shop, Food Lion, Giant Food and Hannaford.
The investigation does not mean Costco or any of the other retailers have been accused or found guilty of wrongdoing. At this point, federal officials are gathering information to better understand why shoppers are paying so much more for beef.
What the Justice Department Wants to Know
The Justice Department reportedly sent letters to the eight retailers asking them to preserve documents related to beef pricing.
The government is seeking information about how the companies set their retail beef prices, how much they pay suppliers and how their profit margins on beef have changed from 2020 through 2026.
Retailers were also asked about their purchasing agreements with meatpacking companies and their analysis of recent changes in wholesale and retail beef markets.
In other words, investigators appear to be looking at the entire path beef takes before it reaches shoppers—from ranchers and meat processors to the supermarket meat case.
Costco Isn’t the Only Retailer Being Questioned
Although Costco is one of the biggest names included in the inquiry, the investigation is much broader.
Along with Costco, Walmart and Aldi, the government sent requests to:
- Amazon
- Kroger
- Publix
- Albertsons
- Ahold Delhaize USA
These companies operate many of the grocery stores Americans shop at every week. The investigation could help determine whether higher retail prices are mainly the result of limited cattle supplies and increased wholesale costs or whether a lack of competition somewhere in the supply chain is also playing a role.
It’s important to note that a request for records is not the same thing as an allegation. The Justice Department has not announced charges against Costco, Walmart, Aldi or the other retailers.
Beef Prices Are Up Sharply
The investigation comes after another year of noticeable increases at the meat counter.
According to the latest Consumer Price Index data from the Bureau of Labor Statistics, beef and veal prices in July 2026 were 9.4% higher than they were a year earlier.
Some cuts increased even more. Beef roast prices rose 13.5%, while uncooked steak prices were up 9.6% and ground beef was 9% more expensive than the previous year.
That means a package of beef that cost $20 a year ago could now cost close to $22, depending on the cut and the store. On a large Costco-sized package, even a relatively small increase per pound can add several dollars to the total price.
Although beef prices dipped slightly from June to July, they remained considerably higher than they were a year earlier.
Why Is Beef So Expensive Right Now?
There isn’t one simple explanation for today’s beef prices.
One of the biggest problems is the limited supply of cattle. The United States had approximately 86.2 million cattle and calves as of January 1, 2026. The number of beef cows fell to 27.6 million, down 1% from the previous year, while the estimated calf crop declined 2%.
Years of drought, high feed prices and increased operating costs have pushed some ranchers to reduce the size of their herds. Once herds shrink, rebuilding them takes time.
Ranchers must retain cows and calves for breeding rather than sending them to market, which can temporarily make the beef supply even tighter.
The industry is also highly concentrated. Four large meatpackers—JBS, Cargill, Tyson Foods and National Beef—control more than 85% of U.S. beef processing, according to the Justice Department.
Federal officials are examining whether that concentration has reduced competition or contributed to higher prices.
The original investigation focused on those meatpacking companies. The decision to request information from retailers expands the inquiry to another part of the beef supply chain.
What This Means for Costco Shoppers
Costco has built much of its reputation around offering lower prices in exchange for selling products in larger quantities. However, bulk packaging can’t completely protect members from rising commodity and wholesale costs.
When the price per pound goes up, a five- or six-pound package can become noticeably more expensive even if Costco is operating on a relatively small markup.
The investigation could provide more information about how much of Costco’s beef price increases came from higher supplier costs and how much came from changes in retail margins.
But shoppers shouldn’t expect an immediate change in Costco beef prices simply because the company received a letter from the Justice Department.
Investigations of this size can take months or longer, and the inquiry may not result in charges or enforcement action.
Could Beef Prices Come Down?
The federal government is trying several approaches to address the cost of beef.
There is a recently signed proclamation temporarily expanding lower-tariff imports of lean beef trimmings. The additional imports are intended primarily for ground beef production and are expected to enter the country over a 90-day period.
The administration has also announced support for smaller meat processors and additional grazing options for some ranchers. These efforts are designed to increase processing competition and help rebuild the domestic cattle industry.
Walmart has already advertised lower prices on several summer items, including a one-pound package of 73% lean ground beef that was reduced from $6.74 to $5.94 at most stores.
Whether broader beef prices come down will depend on several factors, including cattle supplies, wholesale prices, imports and consumer demand. Rebuilding the U.S. cattle herd is a long process, so shoppers may continue seeing elevated prices even if some cuts go on sale.
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