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The White House called for an investigation into the practices of meat processing plants after President Donald Trump accused them in a social media post Friday of artificially inflating prices and endangering the nation’s food supply.
President Trump posted on his social media on Friday, “I call on the Department of Justice to act quickly.” “We must take immediate steps to protect consumers, combat illegal monopolies, and prevent these companies from criminally profiting at the expense of the American people.”
Official statements from the White House specifically mention the following companies as targets of the investigation: JBS, Cargill, Tyson Foods, and National Beef. Together, these companies slaughter 85% of U.S. cattle and most pigs.
President Trump appears to be shifting the blame onto foreign companies, with shares in JBS, the world’s largest beef processing company, falling as much as 6.2% in after-market trading on Friday. The company’s chicken subsidiary, Pilgrim’s Pride, donated $5 million to President Trump’s inaugural committee.
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Smithfield Foods, a pork producer majority-owned by Hong Kong-based WH Group, also fell, while Tyson Foods recovered after falling as much as 2%.
Attorney General Pam Bondi said an investigation led by the Justice Department’s antitrust division has already begun.
Livestock producers have long complained that the four largest meat processing companies have too much concentrated power. They highlight data showing that while the retail price of beef has risen over the past decade, the price paid for cattle has fallen, allowing intermediaries such as slaughterhouses to make more profits.
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“We support this investigation to ensure that livestock producers receive competitive prices for their animals and that consumers pay the value set by a competitive market, not a monopolist,” Bill Bullard, executive director of the Ranchers and Ranchers Litigation Fund, said in a statement Friday.
JBS, Cargill, Tyson Foods and National Beef did not respond to requests for comment when contacted by The New York Times.
Ground beef prices reached $6.32 per pound in September, up more than 11% from a year ago, according to the U.S. Bureau of Labor Statistics (BLS). Wholesale beef prices, which have soared in recent years, are expected to rise 16% by 2025, according to the United States Department of Agriculture (USDA).
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Most economists point to the U.S. cattle herd, which has shrunk to its lowest level in 70 years, due in part to drought, as the main culprit behind the soaring meat prices.
Additionally, tariffs imposed by the United States on Brazil affected the sale of Brazilian meat in the U.S. market.
An investigation could calm criticism of President Trump among ranchers and farmers. Rural Americans overwhelmingly voted for him in the last presidential election, but many are increasingly critical of him after his trade wars drove down agricultural prices and his administration spent $40 billion bailing out Argentina, a U.S. agricultural rival.
President Trump also blamed ranchers for the high price of beef and the decline in the price of cattle at auction, even as the retail price of beef continues to rise.
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At the end of President Trump’s first term, the Justice Department launched an antitrust investigation into the meat processing industry. His successor, Joe Biden, took over the reins but did not file a lawsuit.
In 2022, Biden launched an initiative to allow producers to report unfair trade practices by the industry. Meat packers have long faced criticism for their intense market focus and have paid hundreds of millions of dollars to settle lawsuits over price gouging and antitrust violations.
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