President Donald Trump has ordered the Justice Department to investigate whether major U.S. meat processors are systematically and secretly jacking up the price of beef. Illegal manipulation of market value.
US beef prices are: all-time high1 pound (0.4 kg) of meat costs US$5.79 per unit, while the value of products from selected steers weighing 400 kg or more reaches US$10.98 per unit in large restaurants.
white house Targeting 4 major companies – JBS, Cargill, Tyson Foods, National Beef – Co. They control 85% of the market Processing of beef including mandatory packaging.
There are also structural reasons for these record prices. And first and foremost, it is Cattle numbers are at their lowest level in 70 yearsThis is because the chronic drought experienced by states in the American West and Southwest, including Texas, Kansas, and New Mexico, has wiped out natural grasslands and forced the reduction of all herds without exception. And all this was accompanied by a general increase in the prices of raw materials for animal feed, leading to the collapse of large-scale “feedlot” operations.
The cost of livestock insurance also increased, and the wages of rural workers increased. And the result is The number of livestock has decreased significantly.
This has led consumers to turn to lower-quality cuts and meat substitutes, especially chicken, whose prices have increased by 8.2% in the past six months and consumption has virtually tripled.
therefore, The price of large refrigerators is rising Over USD 200 million in the last 12 months. And this has not been offset by increased sales of poultry meat. Thus, there are accusations of collusion between these four major companies in the beef processing business.
The reason ranchers sell all the products they can is the most basic and typical of markets. This price is unbeatable, This allows producers to obtain large amounts of instant liquidity to make new investments. outside the livestock industry and within the agri-food sector.
Meat production is a medium- to long-term business, and it takes at least 42 months to raise a steer and turn it into a steak. This means animals sold in November will not be ready for processing until September or October 2028. and in the meantime Livestock shortages will become more acute and prices will continue to rise.
In capitalism, the rule is that raising prices promotes supply, but in the livestock industry, this law-of-gravity formula is mediated through the norms of biology, especially regarding the temporality of the product.
Mr. Trump claims: Quota 80,000 tons The beef import volumes transferred to Argentina are part of a trade agreement between the two countries that will be announced within the next 10 days.
This suggests that it wants to remove urgency from its priorities for its key allies in Latin America and place this notable advantage within the framework of mandatory international trade agreements.
In summary, it is explained as follows: the outrage of “ranchers” in Texas, Kansas, and New Mexico over Argentine production;
The problem can be summarized in the following words: U.S. beef prices are at record levels and will remain so for a long time. Market laws favor the world’s best Argentinian meatThe first observation there is that there is a shortfall in North American meat production of more than 2 million tons, forcing imports. This, along with Donald Trump’s support, is a decisive factor for Argentine meat to survive in the world’s largest consumer market.
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