President Trump Calls for Justice Department Investigation
President Donald Trump has publicly accused foreign-owned meat packing corporations of artificially inflating the price of beef in the United States through illicit practices. In a significant move, he has formally requested the Department of Justice (DOJ) to open an investigation into the matter.
The announcement was made via social media, where Trump stated he had “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.” He did not present specific evidence to support these claims.
This development comes just days after the Republican party faced electoral setbacks, with victorious Democratic candidates having heavily focused their campaigns on voters' anxieties about the high cost of living.
Economic Pressures and Industry Pushback
The call for an investigation arrives amidst a complex economic backdrop for the US beef industry. Experts point to a combination of factors behind the record-high prices. A severe drought and years of low prices have led to the smallest US cattle herd size in decades, constricting supply. Furthermore, Trump's own tariffs on Brazilian beef have limited imports from a major global exporter.
Glynn Tonsor, who leads the Meat Demand Monitor at Kansas State University, emphasised that strong consumer demand is a primary driver, stating prices are high because people want to eat beef and are willing to pay for it.
The meat packing industry has swiftly rejected the allegations. The Meat Institute, a major trade group, issued a statement from its President and CEO, Julie Anna Potts, asserting that “beef packers have been operating at a loss for over a year” due to the tight cattle supply and robust demand. The group pointed to US Department of Agriculture data confirming catastrophic losses in the sector, with predictions of this continuing into 2026.
A Long-Standing Political Battle Over Food Costs
Concentration within the meat packing industry, where four major companies dominate the US beef market, has been a concern for politicians and farmers for many years. However, agricultural economist Derrell Peel from Oklahoma State University expressed scepticism about the investigation's potential benefits.
Peel noted there is “no evidence to back up claims that the big packers have undue market power” and warned that any attempt to break them up could paradoxically lead to higher consumer prices and lower prices for cattle producers.
This is not the first time major meatpackers have faced legal scrutiny. In 2022, JBS, the Brazil-based largest US beef producer, agreed to a $52.5 million settlement over price-fixing allegations, though it did not admit wrongdoing.
Trump's actions continue a bipartisan presidential focus on food inflation. His predecessor, Joe Biden, also pursued initiatives to increase competition in the meat industry, while Vice President Kamala Harris had campaigned on a pledge to crack down on alleged “price gouging” by food producers and supermarkets.
