Trump accuses meatpackers of price-fixing as DOJ launches investigation

In his post Friday, Trump made sure to note that he was seeking to safeguard the ranchers.

“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,” he wrote.

The market forces underlying the rise in beef prices are complex and unlikely to be addressed solely by targeting meatpackers, who have already been the subject of multiple federal and class-action suits stretching back decades. Analysts say a combination of reduced cattle supplies, rising input costs like rent and labor, and rising demand for protein products in the U.S. have all placed upward pressure on beef prices. Earlier this year, the administration briefly announced it was pausing targeted immigration enforcement at agricultural sites amid criticism that it was causing labor shortages — though appeared to reverse that directive days later. It has since focused on easing rules around the H-2A temporary visa program for agricultural work, which supporters have called a “lifeline” for U.S. farmers seeking labor assistance.

The meatpacking industry has grown familiar with efforts to counteract its market influence. Consumer groups like Farm Action have long highlighted the influence of the so-called Big Four meatpacking groups — Tyson, Cargill, JBS and National Beef — which it says have come to dominate the industry due to weak antitrust enforcement and a wave of corporate mergers. In his 2022 State of the Union address, Biden accused meatpackers of “pandemic profiteering” and launched several initiatives designed to curb their power.

The companies have pushed back on such allegations, arguing the industry’s consolidation is no different than what has occurred elsewhere in the economy.

Still, they have recently been brought to heel. Last month, Tyson agreed to pay $55 million and Cargill $32.5 million to settle a beef price-fixing lawsuit originally filed on behalf of consumers in 2019, Reuters reported. JBS and National Beef, also named in the suit, continue to litigate. All have denied any wrongdoing. In February, JBS, whose majority owner is based in Brazil, agreed to a separate $83.5 million settlement over allegations of price-fixing brought on behalf of ranchers and other plaintiffs. JBS denied any wrongdoing.

A representative for the Meat Institute, the trade group for the industry, did not respond to a request for comment Friday.