Trump calls for investigation of meat packers over beef prices

Trump accused the industry on social media of driving up the price of beef for American consumers through "illegal collusion, price fixing, and price manipulation."

His call for an investigation focused on potential anti-competitive violations comes at a time when rising beef prices have become a political issue, threatening to undermine his promises to lower food prices in the US.

The announcement follows Republican losses in key elections this week, where voter concerns about the cost of living and Trump's handling of the economy boosted Democrats.

Trump has placed beef prices at the center of his messages about the cost of living, and food inflation in particular. But his recent proposals to lower prices have sparked a sharp backlash among cattle farmers.

Last month, on social media, he urged American cattle farmers to lower their cattle prices. Then, when he proposed importing more beef from Argentina, which could quadruple American purchases, he angered cattle farmers.

At the time, cattle farmers worried that some of his solutions would make it harder for them to make ends meet, while also providing little relief at the grocery store.

As Trump continues to push to lower beef prices for American consumers, his latest call for a federal investigation signals a possible shift in focus toward the meat-packing industry, which slaughters animals and then processes and packs their meat.

"We will always protect our American cattle farmers, and they are being blamed for the actions of majority-foreign-owned meatpackers that artificially inflate prices and jeopardize the security of our nation's food supply," Trump wrote in a social media post.

According to government data published in October, retail prices for beef mince rose 12.9% in the 12 months through September, and beef steak prices rose 16.6%.

A pound of ground chuck—more nutritious mince obtained from the neck and shoulder of cows—now costs an average of $6.33 (£4.75), compared to $5.58 a year earlier.

This increase significantly exceeds general food inflation, which was 3.1%.

Some economists attribute the high prices to a supply shortage and strong demand for beef.

The nation's cattle stock has fallen to its lowest level in nearly 75 years. The decades-long contraction in the industry has worsened as years of drought have forced ranchers to reduce the size of their herds—and rebuilding herds takes years.

But others argue that the U.S. government could lower beef prices if it focused on how a handful of companies dominate the meat processing market.

Today, just four companies control more than 80% of the beef slaughter and packing market. Meat processing companies—Tyson, JBS, Cargill, and National Beef—have faced numerous lawsuits, including one filed by McDonald's, alleging they colluded to raise the price of beef.

Consolidation in the meat processing industry is under intense scrutiny from both parties.

The Biden administration issued an order directing agencies to address corporate consolidation in the food supply chain, although Trump rescinded that order earlier this year.

Former President Joe Biden also urged the Agriculture Department to investigate large meatpackers, accusing them of raising prices and boosting profits during the pandemic.