APPLETON, Wis. — President Donald Trump on Friday accused major meatpacking companies of illegally driving up beef prices through collusion and manipulation, prompting the Justice Department to announce an investigation into the industry's practices amid widespread consumer frustration over soaring costs.
In a post on Truth Social, Trump claimed, without evidence, that the companies “are driving up the price of Beef, through Illicit Collusion, Price Fixing, and Price Manipulation.” He emphasized his commitment to protecting American ranchers, stating, “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.”
Shortly after Trump's post, Attorney General Pam Bondi announced on X that the Justice Department had launched an investigation, led by antitrust chief Abigail Slater in collaboration with the Department of Agriculture. The move comes as beef prices have reached record highs, with ground beef averaging $6.32 per pound in September, according to data from the Bureau of Labor Statistics.
The announcement arrives against a backdrop of economic challenges that have dented Trump's popularity. Recent elections saw Democrats secure a wave of victories, interpreted by some as a referendum on the administration's handling of affordability issues inherited from the Biden era. Beef, a staple in many American households, has been particularly hard-hit, with prices climbing steadily due to a mix of factors including tight cattle supplies and strong demand.
Industry representatives swiftly pushed back against the allegations. Julie Anna Potts, president and CEO of the Meat Institute, the sector's main lobbying group, said in a statement that meatpackers were not responsible for the price surges and welcomed a “fact-based discussion” on the matter. “Despite high consumer prices for beef, beef packers have been losing money because the price of cattle is at record highs,” Potts said. She added, “For more than a year, beef packers have been operating at a loss due to a tight cattle supply and strong demand.”
Potts further noted that the industry is “heavily regulated” with “transparent” market transactions. According to her, government data from the USDA confirms “catastrophic losses” in the beef packing sector, with experts predicting the trend to continue into 2026.
Trump's targeting of meatpackers, many of which have foreign ownership, appears aimed at addressing voter concerns about inflation without alienating key supporters in the cattle ranching community. Ranchers have traditionally backed the president, but tensions emerged last month when major cattle groups criticized his proposal to import beef from Argentina as a potential fix for high prices.
The complexities of the beef market extend beyond any single factor, analysts say. Reduced cattle supplies, escalating input costs such as rent and labor, and robust U.S. demand for protein have all contributed to the upward pressure on prices. The administration has taken steps to address labor shortages in agriculture, including a brief pause on targeted immigration enforcement at farming sites earlier this year, though that directive was reportedly reversed shortly after. More recently, efforts have focused on expanding the H-2A temporary visa program, which industry supporters describe as a “lifeline” for farmers.
The meatpacking sector has faced scrutiny for decades, with consumer advocacy groups like Farm Action pointing to the dominance of the so-called Big Four companies: Tyson Foods, Cargill, JBS, and National Beef. These firms have consolidated power through mergers and what critics call lax antitrust enforcement, controlling a significant portion of the market.
In his 2022 State of the Union address, former President Joe Biden accused meatpackers of “pandemic profiteering” and initiated measures to limit their influence. The companies have countered that their consolidation mirrors trends in other industries and deny any wrongdoing.
Despite high consumer prices for beef, beef packers have been losing money because the price of cattle is at record highs. For more than a year, beef packers have been operating at a loss due to a tight cattle supply and strong demand. 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.
This quote from Potts underscores the industry's defense, highlighting economic pressures rather than collusion as the root cause. Recent legal developments lend some credence to ongoing concerns about pricing practices. Last month, Tyson Foods agreed to a $55 million settlement in a 2019 consumer lawsuit alleging beef price-fixing, while Cargill settled for $32.5 million, according to Reuters. Both companies denied wrongdoing. JBS and National Beef, also named in the suit, are continuing to fight the claims in court.
In a separate case, JBS, which is majority-owned by a Brazilian entity, settled for $83.5 million in February over price-fixing allegations brought by ranchers and other plaintiffs. Again, the company denied any misconduct. These settlements reflect a pattern of litigation against the industry, stretching back years, though companies maintain that market forces, not illegal activities, are at play.
The Justice Department's new probe, announced on Friday, builds on this history and could examine whether the major players are engaging in anticompetitive behavior. Abigail Slater, the DOJ's antitrust chief, will lead the effort alongside USDA officials, potentially scrutinizing transactions and pricing data for signs of manipulation.
Beyond the immediate investigation, the issue highlights broader economic anxieties as the U.S. grapples with inflation in food and other essentials. Trump's focus on foreign-owned meatpackers taps into nationalist sentiments, positioning the probe as a defense of American interests. However, experts caution that resolving beef price issues will require addressing underlying supply chain vulnerabilities, including cattle herd sizes and labor availability.
As the investigation unfolds, stakeholders from ranchers to consumers will be watching closely. The Meat Institute has expressed willingness to cooperate, but the outcome could reshape regulations in an industry already under the microscope. With beef prices showing no immediate signs of decline, the administration's actions may serve as a litmus test for its economic policies heading into the future.
The probe also intersects with international trade dynamics, given the foreign ownership of some key players like JBS. Trump's earlier proposal to import Argentine beef drew backlash from domestic producers, illustrating the delicate balance between short-term price relief and long-term support for U.S. agriculture.
In the coming months, updates from the DOJ and USDA could provide more clarity on whether evidence of price-fixing emerges. For now, the allegations remain unproven, with the industry insisting on its transparency and the administration pressing forward amid political pressures.
Rob Wile contributed to this report from NBC News.