US President Donald Trump on Friday called on the Department of Justice to investigate major meat-packing companies for allegedly driving up beef prices through “Illicit Collusion, Price Fixing, and Price Manipulation.”
Announcing the move on social media, Trump accused “Majority Foreign Owned Meat Packers” of “artificially inflating prices” and “jeopardizing the security of our Nation's food supply.” He added, “We will always protect our American Ranchers, and they are being blamed for what is being done by the Majority foreign-owned meat Packers.”
His demand for a federal probe comes as rising food costs, particularly beef, have become a pressing political issue. The announcement followed Republican setbacks in key elections this week, where Democrats campaigned heavily on the cost of living.
Beef prices in the US have climbed to record highs, driven by shrinking cattle herds after years of drought and low prices. Government data released in October showed retail beef mince prices rising 12.9% in the year to September, while steaks were up 16.6%. A pound of ground chuck now averages $6.33, compared to $5.58 a year earlier, far outpacing general food inflation of 3.1%.
Economists attribute the surge to supply constraints and strong consumer demand. The US cattle inventory has dropped to its lowest level in nearly 75 years, with drought conditions forcing many ranchers to cut herd sizes. Rebuilding them takes years.
But critics say market concentration is also to blame. Just four companies, Tyson, JBS, Cargill, and National Beef, control more than 80% of the US beef processing market. The industry has faced multiple lawsuits, including one filed by McDonald’s alleging price collusion.
JBS, a Brazil-based firm, is the largest beef producer in the US and the world’s second-largest producer of poultry and pork. It employs more than 72,000 people in America and generates about half of its annual revenue there.
The company has previously faced price-fixing charges. In 2022, JBS agreed to a $52.5 million settlement with grocery stores and wholesalers who accused it, Tyson, and others of manipulating cattle supplies to boost prices. JBS did not admit wrongdoing, and messages seeking comment were not immediately returned on Friday.
Oklahoma Senator Markwayne Mullin said he and fellow Republican senators Cindy Hyde-Smith and Tim Sheehy met Trump at the White House to discuss recent volatility in the beef market. According to Mullin, Trump agreed to have the DOJ look into the matter.
“We’re seeing the same exact game play again out,” Mullin said, referring to the 2019 antitrust lawsuit against major meatpackers.
Trump has placed food prices, and beef in particular, at the center of his economic messaging. But some of his earlier proposals drew backlash from ranchers. Last month, he urged US cattle producers to lower prices for their livestock and suggested importing more beef from Argentina to reduce costs for consumers, angering American ranchers who said the move would hurt their livelihoods.
Trump’s latest call for a federal investigation marks a shift in focus from ranchers to the meat-packing industry itself, which slaughters livestock and processes meat for retail.
The debate over corporate concentration in the meat industry has long attracted bipartisan attention. Former President Joe Biden and Vice President Kamala Harris both vowed to tackle “price gouging” by large food companies. The Biden administration also directed agencies to curb corporate consolidation in the food supply chain, an order Trump later revoked earlier this year.
(With agency inputs)
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