Trump accuses foreign-owned meat packers of inflating US beef prices and calls for investigation

President Trump Orders DOJ Investigation Into Meat Packers Over Rising Beef Prices

President Donald Trump announced Friday he has asked the Department of Justice to investigate foreign-owned meat packing companies, accusing them of artificially inflating beef prices through “illicit collusion, price fixing, and price manipulation.”

The announcement comes days after Republicans suffered losses in key elections where Democratic candidates focused heavily on cost-of-living concerns. In his social media statement, Trump said he was taking action to help American ranchers who “are being blamed for what is being done by majority foreign-owned meat packers.”

This move follows recent controversy when Trump suggested the U.S. might import Argentine beef to address high domestic prices, a comment that angered American cattle producers. The president did not provide specific evidence for his price-fixing allegations.

Beef prices have reached record levels in recent years due to several market factors. A prolonged drought and years of low prices have led to the smallest U.S. cattle herd in decades, while consumer demand remains robust. Trump’s tariffs on Brazil, a major beef exporter, have further constrained imports.

Agricultural economists express skepticism about the premise of the investigation. Glynn Tonsor, who leads the Meat Demand Monitor at Kansas State University, noted that the ownership structure of meat packing companies hasn’t changed significantly in the past four years. He attributed high prices to strong consumer demand rather than market manipulation.

Derrell Peel, an agricultural economist at Oklahoma State University, questioned whether the investigation would benefit either consumers or producers. “If the outcome is to break up the big packers, the outcome will be higher beef prices for consumers, and lower cattle prices for producers,” Peel said.

Market concentration has long been a concern in the U.S. beef industry, where four major companies dominate processing. JBS, headquartered in Brazil, is the largest U.S. beef producer and second-largest producer of poultry and pork. The company generates half its annual revenue from U.S. operations, where it employs over 72,000 workers.

This isn’t the first time meat packers have faced scrutiny. In 2022, JBS agreed to a $52.5 million settlement with grocery stores and wholesalers who accused the company, along with Arkansas-based Tyson Foods and others, of collaborating to suppress cattle slaughter numbers to drive up beef prices. JBS did not admit wrongdoing in the settlement.

Senator Kevin Cramer (R-ND) has been pushing for such an investigation since March 2020. Last week, he called on the administration to renew an investigation into meat packers that was initiated during Trump’s first term.

The Meat Institute, representing JBS and other producers, defended the industry, claiming beef packers have been operating at a loss for over a year due to tight cattle supply and strong demand. Julie Anna Potts, the organization’s President and CEO, stated, “The beef industry is heavily regulated, and market transactions are transparent. The government’s own data from USDA confirms that the beef packing sector is experiencing catastrophic losses.”

The battle against rising food prices has crossed party lines. Former President Joe Biden previously engaged with independent farmers and ranchers about initiatives to reduce food prices through increased competition in the meat industry. During her presidential campaign, Kamala Harris pledged to crack down on food producers and major supermarkets for alleged “price gouging.”

Trump’s latest action represents another chapter in ongoing political efforts to address consumer concerns about food affordability and market fairness in an industry where questions about competition and price control have persisted for decades.