Beef with meatpackers: Trump orders Justice Department to probe industry as prices in US soar
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Wholesale beef prices, which have been surging in recent years, jumped 16 per cent in 2025, according to the US Department of Agriculture.
PHOTO: AFP
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US President Donald Trump ordered a federal investigation into the meatpacking industry, blaming “majority foreign-owned” companies for soaring beef prices.
He asked the Justice Department (DOJ) to “immediately begin” the investigation into meat processors, accusing them of collusion, price fixing and manipulation, according to a social media post. Shares of Brazil’s JBS NV, the world’s largest meat company, fell by as much as 6.2 per cent in after-hours trading.
“I am asking the DOJ to act expeditiously,” he said on social media on Nov 7. “Action must be taken immediately to protect consumers, combat illegal monopolies, and ensure these corporations are not criminally profiting at the expense of the American people.”
Wholesale beef prices, which have been surging in recent years, jumped 16 per cent in 2025, according to the US Department of Agriculture. The increase came after the US cattle herd dwindled to the lowest level in seven decades, in part due to droughts.
The high cost of living dominated voter concerns this week in off-year elections, propelling Democrats to victory over Mr Trump’s Republicans in races across the country. Polls showed voters gave Mr Trump low ratings for his handling of the economy, and afterwards, his advisers vowed to place a greater focus on affordability.
Meat is the latest target in Mr Trump’s attempts to curb food inflation,
Mr Trump appeared to put the blame on foreign-owned companies, driving down JBS shares. The company’s chicken subsidiary Pilgrim’s Pride donated US$5 million (S$6.5 million) to Mr Trump’s inauguration committee.
Pork producer Smithfield Foods, majority owned by Hong Kong-based WH Group, also dropped, while Tyson Foods slid by as much as 2 per cent before turning higher again. The companies did not respond to immediate requests for comment. Cargill, which is one of the US’s top meatpackers and is not publicly traded, also did not comment.
High meat prices also bedevilled Mr Trump’s predecessor Joe Biden. The former president blamed costs on anti-competitive practices and consolidation, and in 2022 launched an effort to allow producers to report unfair trade practices by the industry. Meatpackers have long faced criticism for being too concentrated, and have paid hundreds of millions to settle price-fixing and antitrust lawsuits.
Mr Trump’s handling of meat prices has drawn pushback from allies in agricultural states, who say his plan to allow more imports of tariff-free Argentine beef risks undercutting American farmers.
Cattle futures have cooled recently, in part as Mr Trump’s plans to import Argentinian beef sour investors’ outlook on prices. The move in futures markets reflects expectations that the shipments could eventually boost supplies, especially as trade talks are also ongoing with Mexico and Brazil. But it can take longer for bolstered supplies to translate into cheaper prices at the retail level.
“While cattle prices have dropped substantially, the price of boxed beef has gone up – therefore, you know that something is ‘fishy’,” Mr Trump said in a subsequent post. BLOOMBERG
