US President Donald Trump recently requested that the Justice Department investigate meat-packing companies concerning their potential influence on rising beef prices. In a social media post, he accused these companies of engaging in “Illicit Collusion, Price Fixing, and Price Manipulation,” suggesting they contribute to the increased costs faced by consumers.
The call for an investigation arises amid growing concerns over soaring beef prices, which have become a political challenge for Trump, especially following Republican losses in recent elections where voters indicated discontent with the economy. Trump has emphasized beef prices in his outreach related to the cost of living and food inflation. His earlier suggestions to lower costs, including urging ranchers to reduce cattle prices and proposing an increase in beef imports from Argentina, have led to backlash from ranchers who expressed worries about their livelihoods.
The latest request for a federal investigation represents a shift in focus towards the meat-packing sector, which processes and packages beef. Trump stated a commitment to protecting American ranchers, asserting that they are unfairly blamed for price increases driven by foreign-owned meat processors.
Government data indicates substantial increases in retail beef prices, with ground beef rising 12.9% and beef steaks by 16.6% over the past year—far exceeding the general food inflation rate of 3.1%. Analysts cite supply constraints and strong consumer demand as key factors behind the price surge, highlighting a significant decline in the nation’s cattle inventory due to long-term industry challenges.
Market concentration is also a concern; four companies—Tyson, JBS, Cargill, and National Beef—control over 80% of the beef slaughtering and packing market. This consolidation has attracted bipartisan scrutiny, with the Biden administration previously directing actions against corporate dominance in the food supply chain.
Source: https://www.bbc.com/news/articles/c30vrm98d00o?at_medium=RSS&at_campaign=rss