The country’s top meatpacking companies are under presidential scrutiny for alleged price fixing and collusion.
On Nov. 7, President Donald Trump wrote in a Truth Social post that he directed the Department of Justice (DOJ) to immediately investigate meat packing companies “who are driving up the price of Beef through Illicit Collusion, Price Fixing, and Price Manipulation.”
“We will always protect our American Ranchers, and they are being blamed for what is being done by Majority Foreign Owned Meat Packers, who artificially inflate prices, and jeopardize the security of our Nation’s food supply,” Trump wrote.
He added that action must be taken immediately to protect consumers, combat illegal monopolies and ensure the packers aren’t “criminally profiting” at the expense of Americans.
U.S. Attorney General Pam Bondi and Secretary of Agriculture Brooke Rollins each confirmed the DOJ will investigate beef packers for antitrust issues.
“Our investigation is underway! My Antitrust Division led by (Abigail Slater) has taken the lead in partnership with our friend (Rollins) at @USDA,” Bondi wrote in a post on social media platform X.
“(Trump) is cracking down on the foreign-owned meat-packing cartels that have been ripping off American ranchers and driving up prices!” Rollins wrote in an X post of her own. “This is a HUGE win for our ranchers, our consumers, and anyone sick of foreign businesses fleecing Americans.”
The White House said in a news release that Trump’s order to the DOJ targets foreign-dominated conglomerates that control the U.S. meat supply, and that have been accused of artificially increasing prices at the expense of ranchers, farmers and working families.
“For too long, a handful of giant meat packers have squeezed America’s cattle producers, shrunk herds, and jacked up prices at the grocery store,” the White House said. By investigating the companies for antitrust violations through coordinated pricing or capacity restrictions, the investigation will root out any collusion while restoring fair competition and protecting food security, the White House added.
The news release continued that industry consolidation has “crushed competition and hammered cattle producers,” citing that the Big Four purchased one-third of all cattle in the 1980s, but the number grew to more than 80% by the mid-90s and only continues to grow.
“This has led to the exploitation of American consumers, farmers, and ranchers,” the statement concluded. “In fact, mounting evidence shows this monopoly power has slashed payments to ranchers, reduced herd sizes, driven up consumer prices, and threatened America’s food supply chain.”
The announcement comes only about two weeks after the White House announced it planned to increase Argentina’s beef import quota from 20,000 metric tons to 80,000 metric tons, which resulted in pushback from ranchers.
Industry reactions
The Meat Institute contended that beef packers have been losing money because of record-high cattle prices, and have been operating at losses for more than a year due to tight supplies and demand.
“U.S. beef processors welcome a fact-based discussion about beef affordability and how best to meet the needs of American consumers, who are the industry’s most important stakeholders,” said Meat Institute President and CEO Julie Anna Potts in a statement. “Beef packers rely on cattle producers and cattle producers rely on beef packers. The entire beef value chain is strongest when supply is balanced by demand.”
Ranchers-Cattlemen Action Legal Fund, USA (R-CALF) CEO Bill Bullard said in a statement that the group appreciates Trump’s announcement. “There has long been a disconnect between cattle prices and beef prices, and we believe this is evidence of market failure,” Bullard said. “We welcome this investigation to ensure that cattle producers receive competitive prices for their cattle, and that consumers pay prices set by a competitive market rather than a monopolistic one.”
The U.S. Cattlemen’s Association (USCA) wrote in a Facebook post that the organization will continue to say that beef prices in the grocery store are not too high and are a direct reflection of consumer demand. However, “USCA appreciates President Trump taking a closer look at the industry and exploring ways to support U.S. ranchers,” the group said. “We look forward to providing the producer’s voice and perspective in discussions regarding the supply chain and retail sector moving forward.”
Several lawmakers expressed their support following Trump’s directive.
“For years, I’ve been calling for DOJ to investigate the four large meat packing companies,” Sen. Mike Rounds (R-SD) wrote on X. “President Trump has started that ball rolling!”
Sen. Tim Sheehy (R-MT), who was at a meeting with Trump ahead of the announcement, posted on X, “President Trump stands with AMERICAN ranchers!”
Sen. Cindy Hyde-Smith (R-MS), who was also present at the meeting, wrote in an X post of her own, “The path forward we discussed will bring tremendous benefits to rural America, and I couldn’t be prouder to stand up for and represent the hardworking men and women who feed our nation.”
Shortly before Trump’s announcement, North Dakota Republican Sen. Kevin Kramer called on the DOJ to follow up on its 2020 investigation into packers and beef prices. “If the conclusion is they are too concentrated, that they have violated antitrust laws, that they have violated collusion laws, then if a breakup is necessary, so be it,” Kramer said in an interview with local North Dakota TV station KVVR.
Déjà vu?
Under the first Trump administration in 2020, the DOJ began an investigation into potential Big Four antitrust violations, price fixing and market manipulation. The fallout from the COVID-19 pandemic pushed cattle producers to further scrutinize the Big Four’s market control, and the DOJ and USDA began an investigation into whether packers conspired to fix beef prices during pandemic volatility.
USDA and the DOJ released an investigation report in July 2020, summarizing market conditions, fed cattle prices, boxed beef values and effects of “black swan events” experienced in recent years. The report did not examine potential violations of the Packers and Stockyards Act.
“While we’re pleased to provide this update, we assure producers that our work continues in order to determine if there are any violations of the Packers and Stockyards Act,” then-Secretary of Agriculture Sonny Perdue said at the time. “If any unfair practices are detected, we will take quick enforcement action.”
Two years later, a further update on the investigation had yet to be given, and cattle producers and lawmakers alike called on the government to release its findings or give an update on its probe into the cattle markets.
“While family farmers are being squeezed, families across the country are paying more for their beef and the Big Four are reaping record profits,” lawmakers wrote in a letter dated July 28, 2022.
In October 2024, USDA released an interim report identifying potential problematic fees and unjust or anticompetitive pricing strategies in the beef market as a case study. USDA said the report was interim because “industry cooperation was only partial.” The department also said at the time it was continuing an investigative study and enforcing subpoenas when necessary. No further updates were given. — Anna Miller Fortozo, WLJ managing editor
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