Ranchers hopeful as Trump announces DOJ investigation into meatpackers
Four companies control 85% of the U.S. meatpacking industry. Two are foreign-owned.
The Department of Justice (DOJ) is looking into the “Big Four” meatpackers, President Trump announced Friday.
“I have asked the DOJ to immediately begin an investigation into the Meat Packing Companies who are driving up the price of Beef through Illicit Collusion, Price Fixing, and Price Manipulation,” Trump said.
Cattle ranchers have long alleged collusion between Tyson, Cargill, JBS, and National Beef. These four companies control 85% of the beef supply, up from 35% in 1980.
By contrast, ranching remains one of the most decentralized industries in American agriculture. 97% of beef operations in the U.S. are family-owned and operated, and 79% run less than 50 head of cattle. The U.S. has lost 107,000 cattle ranches in the past five years.
This announcement comes as several meatpackers are set to pay out millions in a consumer price-fixing lawsuit. Last month, Tyson and Cargill agreed to pay $55 million and $32.5 million respectively, joining JBS, which settled for $83.5 million in February, over allegations they conspired to fix beef prices. Tyson and Cargill agreed to cooperate in ongoing litigation against JBS and National Beef. While the meatpackers deny wrongdoing, the case raises questions about market monopolization and price rigging affecting both consumers and cattle ranchers.
Attorney General Pam Bondi confirmed that the DOJ has already begun looking into possible antitrust violations, partnering with Agriculture Secretary Brooke Rollins.
It appears the investigation may have come at Rollins’ request and encouragement. In October, Trump riled some in the beef industry when he blamed cattle ranchers for consumer prices. Rollins then shared a plan to fortify the American cattle industry—the first policy paper in decades aimed at small independent ranchers. She praised Trump’s DOJ investigation announcement as “cracking down” on “meat-packing cartels ripping off American ranchers.”
“For far too long, hardworking ranching families have been squeezed by massive foreign-owned meatpacking corporations manipulating prices and driving family operations out of business,” Rollins stated.
In 1921, Congress passed the Packers & Stockyards Act to break up what was then five major meatpacking corporations with a chokehold on the industry. Today, there are fewer corporate meatpackers who control even more of the market. Two of the “Big Four” are foreign-owned; both JBS and National Beef have majority Brazilian ownership. Ranchers say the law is not being enforced.
“This is not about today’s or tomorrow’s market,” said Jim Mundorf, host of the popular industry podcast Lonesome Lands. “It’s about farmers and ranchers being able to look their kids in the eyes and honestly tell them there is a future for them in this business.”
While there have been prior investigations into meatpackers, industry leaders hope this will result in real change, transparency, and opportunity for cow-calf producers who feel shut out by the mega-players in the beef production chain.
“There has long been a disconnect between cattle prices and beef prices, and we believe this is evidence of market failure,” said Bill Bullard, CEO of R-CALF USA. “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.”
R-CALF is the largest advocacy organization representing only independent ranchers. As of Monday evening, the U.S. Cattlemen’s Association (USCA) and National Cattlemen’s Beef Association (NCBA) had not released a statement on the investigation.
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