WASHINGTON — President Donald Trump on Friday called for an investigation into the country’s largest meatpacking companies, alleging that the firms may be artificially inflating beef prices and affecting the nation’s food supply.
The Justice Department confirmed that its antitrust division is already examining the industry, a move that could have significant implications for ranchers, consumers and the structure of the US meat industry.
The White House identified four major meatpackers JBS, Cargill, Tyson Foods and National Beef as focal points of the inquiry. Collectively, these companies process roughly 85 percent of the nation’s cattle and a majority of hogs.
“Ranchers deserve a fair price for their cattle, and consumers deserve a competitive market,” said Bill Bullard, chief executive of the Ranchers Cattlemen Legal Action Fund. “This investigation is a step toward transparency in an industry where a few companies hold considerable power.”
Shares of publicly traded JBS and Tyson Foods initially dropped following the announcement, though Tyson recovered by the end of the trading day.
Beef prices have steadily climbed over the past decade, with a pound of ground beef reaching $6.32 in September, an increase of more than 11 percent from the previous year, according to the Bureau of Labor Statistics. Economists attribute much of the price surge to the US cattle herd shrinking to levels not seen since the 1950s.
Economists and industry observers caution that while antitrust scrutiny may influence the market, structural factors also contribute to high beef prices.
“Concentration in the meatpacking industry can give these companies leverage, but the primary driver of beef costs today is supply constraints,” said Dr. Margaret Ellison, a professor of agricultural economics at Kansas State University. “Even if collusion is minimal, reduced cattle numbers naturally put upward pressure on prices.”
Pam Bondi, US attorney general, emphasized that the investigation is already underway, led by the Justice Department’s antitrust division. “We are committed to ensuring that market practices do not disadvantage ranchers or consumers,” Bondi said in a statement.
Gail Slater, assistant attorney general for antitrust, highlighted her focus on industries directly affecting Americans’ pocketbooks, including food, housing and health care. “We are examining potential anticompetitive practices in agriculture with the goal of fostering fair competition,” Slater said.
Over the past decade, retail beef prices have risen steadily while prices paid to ranchers for cattle have remained largely stagnant, illustrating the disproportionate gains captured by intermediaries.
Private lawsuits against the big meatpackers have resulted in hundreds of millions of dollars in settlements over allegations of price fixing, yet federal enforcement has seldom resulted in formal charges against executives.
A 2024 analysis by the Department of Agriculture found that in highly concentrated meatpacking markets, ranchers received up to 15 percent less for their cattle compared with regions served by more diversified processors.
Ranchers across the Midwest and Plains states have expressed cautious optimism about the investigation.
“Any move that ensures a fair shake for small and mid sized ranchers is welcome,” said Tom Herrera, a fifth generation cattle rancher in Nebraska. “We’ve seen the big four dominate the market for years. Competition would be good for everyone.”
Meanwhile, local meat retailers report ongoing price pressures. “We’re paying more for beef from the packers, and that cost is passed on to consumers,” said Lisa Chen, owner of a butcher shop in Des Moines, Iowa. “An antitrust inquiry might help stabilize prices over time, but it won’t solve short term supply issues.”
Analysts say the investigation may help improve market transparency, but any long term effects on beef prices could be limited by structural supply constraints.
Further federal action could include subpoenas, regulatory reforms, or settlements similar to prior private lawsuits, though history suggests formal indictments remain rare.
“The inquiry sends a message that the federal government is paying attention,” said Ellison. “But the real question is whether meaningful action follows that changes how meatpacking operates.”
The Justice Department’s antitrust review of major US meatpackers comes as beef prices remain elevated, influenced by both industry concentration and supply limitations.
Ranchers, consumers and policymakers will closely monitor the investigation for signs that it can rebalance market dynamics, but the ultimate impact on retail beef costs remains uncertain.