Key Takeaways
- DOJ launches antitrust investigation into major meatpackers following Trump’s price-fixing allegations
- Beef prices hit record highs with ground beef reaching $6.32 per pound
- Industry denies wrongdoing, claims packers operating at losses due to cattle supply issues
- Recent settlements total over $170 million in price-fixing cases
The Justice Department has launched an investigation into potential price-fixing by major meatpacking companies amid record beef prices. The probe follows allegations from former President Donald Trump that companies are “illicitly colluding” to manipulate beef markets.
Trump Accuses Meatpackers of Market Manipulation
In a Truth Social post, Trump claimed without evidence that meatpackers “are driving up the price of Beef, through Illicit Collusion, Price Fixing, and Price Manipulation.” Minutes later, Attorney General Pam Bondi confirmed the Justice Department investigation was underway.
The antitrust division, led by Abigail Slater, will conduct the investigation in partnership with the Department of Agriculture.
Record Beef Prices Hit Consumers
Ground beef reached a record $6.32 per pound in September according to Bureau of Labor Statistics data. The price surge comes amid broader economic concerns and rising costs for household staples.
“Despite high consumer prices for beef, beef packers have been losing money because the price of cattle is at record highs,” Meat Institute President and CEO Julie Anna Potts said. “For more than a year, beef packers have been operating at a loss due to a tight cattle supply and strong demand.”
Industry Defends Against Allegations
The North American Meat Institute, the industry’s main lobbying group, welcomed “fact-based discussion” but denied packers are responsible for price increases. They attribute high consumer prices to record cattle costs and supply constraints.
“The beef industry is heavily regulated, and market transactions are transparent. The government’s own data from USDA confirms that the beef packing sector is experiencing catastrophic losses and experts predict this will continue into 2026,” Potts continued.
Political Balancing Act
Trump’s targeting of meatpackers, some foreign-owned, represents an attempt to address consumer concerns without alienating traditional ranch industry supporters. However, cattle groups recently criticized his proposal to import Argentine beef as a solution.
“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,” Trump wrote.
Complex Market Forces
Analysts note beef price increases stem from multiple factors including reduced cattle supplies, rising input costs, and strong consumer demand. The meatpacking industry has faced similar allegations for decades.
Consumer groups highlight the dominance of the “Big Four” meatpackers – Tyson, Cargill, JBS and National Beef – which control significant market share following industry consolidation.
Recent Legal Settlements
Major packers have recently settled significant price-fixing cases:
- Tyson: $55 million settlement (consumer lawsuit)
- Cargill: $32.5 million settlement (consumer lawsuit)
- JBS: $83.5 million settlement (rancher lawsuit)
JBS and National Beef continue to litigate remaining claims. All companies deny wrongdoing.
