Legislation introduced by Senate Majority Leader Chuck Schumer (D-NY) and several Democratic colleagues seeks to dramatically reshape the U.S. meatpacking sector, arguing that increased competition is necessary to lower grocery prices and restore bargaining power for farmers and ranchers.
The Family Grocery and Farmer Relief Act aims to address what its sponsors describe as excessive consolidation in the beef, pork and poultry industries. According to the bill’s findings, four companies control roughly 85% of the beef market and 67% of the pork market, while more than 60% of chicken processing is concentrated among four firms. In 1970, ranchers received about 70% of the consumer beef dollar, but today that share is closer to 30%, according to the legislation.
Bill summary
A central provision would require large meatpacking companies to operate in only one “line of protein,” meaning they could no longer process beef, pork and poultry simultaneously. The Federal Trade Commission (FTC) would oversee divestitures to separate those operations into independent companies.
The bill also establishes antitrust thresholds for the beef sector. If market concentration exceeds certain benchmarks, such as a Herfindahl-Hirschman Index—a measure of market competitiveness and concentration—above 1,800, a top-four market share above 50%, or a single company controlling at least 30% of the market, regulators would be required to order divestitures to reduce concentration.
Another section addresses vertical integration between packers and large feedlots. The legislation would prohibit a major packer from slaughtering more than 10% of cattle produced by any single large feedlot, a measure designed to prevent long-term supply arrangements that lawmakers say reduce demand for cattle from independent producers.
The bill also calls for increased scrutiny of foreign ownership in the U.S. meatpacking sector. It directs regulators to consider divestitures where foreign-controlled companies may undermine competition or food system resilience.
Finally, the legislation would expand federal oversight of retail meat pricing practices and provide funding through the Small Business Administration to support farmers’ cooperatives and small businesses seeking to acquire or expand meatpacking facilities.
Industry reaction
The legislation immediately drew criticism from the Meat Institute, with President and CEO Julie Anna Potts stating the proposal would disrupt the industry and increase costs for consumers.
“This proposal is absurd,” Potts said. “Schumer’s bill and other efforts to villainize meat packers is simply reckless election year pandering that threatens to damage a crucial industry at the center of every American meal.”
Potts argued the legislation would force companies operating across multiple species to divest major business lines, creating uncertainty throughout the supply chain.
“Imagine the federal government mandating that Ford only manufacture trucks while forcing them to sell off all their other vehicle lines,” she said. “It is unthinkable in a free market.”
Potts also questioned whether there are buyers capable of operating divested facilities and warned the proposal could reduce processing capacity. According to the Meat Institute, the broader meat and poultry industry contributes $347.7 billion in value added, supports more than 3.2 million jobs, generates $205.3 billion in labor income and produces $911.7 billion in total economic output.
Potts added that current beef prices are largely driven by supply constraints, noting the U.S. cattle herd is at its smallest level in decades.
“The solution to reducing beef prices is to encourage cattle producers to retain heifers and rebuild the herd,” she said.
Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America (R-CALF USA) CEO Bill Bullard expressed measured support for the legislation, stating it highlights concerns long raised by independent producers.
“For decades, R-CALF USA has been rigorously fighting on behalf of cattle feeders and ranchers for free and fair competition in the cattle markets,” Bullard said. “We welcome Congress’s recent effort to address the competition crisis plaguing our nation’s cattle markets.”
Bullard noted that the legislation mirrors broader federal scrutiny of the beef sector, including investigations and task forces examining potential price manipulation and market distortions.
Other advocacy groups also expressed support. Carrie Balkcom of the American Grassfed Association said the proposal could help remove barriers faced by independent producers seeking market access.
Similarly, Nidhi Hegde, executive director of the American Economic Liberties Project, said the legislation represents a broader effort to address concentrated market power.
“This is a common-sense, pro-market reform that would benefit all Americans, and it should be a bipartisan no-brainer in Congress,” Hegde said. — Charles Wallace, WLJ contributing editor
