Trump Investigates Meatpackers Over Price Increases During Drought, Dominating 80% of the Market

President Donald Trump has instructed the Justice Department to launch an investigation into leading meatpacking firms over suspicions of collusion, price manipulation, and fixing within the beef sector, intensifying scrutiny on an industry already criticized for its stronghold over America’s food supply. This directive, shared on Truth Social on Nov. 7, comes amid unprecedented beef prices caused by drought-induced shortages and years of industry consolidation, as reported by

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The president accused meatpackers—most of which are majority foreign-owned—of deliberately driving up prices to the detriment of both ranchers and consumers. He pointed to the gap between declining cattle prices and soaring boxed beef costs as proof that “something suspicious” was happening, according to a

article. Attorney General Pam Bondi confirmed that the Justice Department, in partnership with the Department of Agriculture, has begun the investigation. Agriculture Secretary Brooke Rollins, a close Trump associate, stressed the importance of “openness and responsibility” in a post on X, echoing ranchers’ long-standing grievances about corporate middlemen abusing their market power, as noted by India Today.

In 2025, beef prices soared to all-time highs as a severe drought devastated grazing lands, forcing ranchers to shrink the U.S. cattle population to its lowest in nearly 75 years. This supply shortage, paired with robust consumer demand, has led to a 16% jump in wholesale beef prices so far this year, according to USDA figures cited by Fortune. The four dominant processors—Tyson Foods, Cargill,

, and National Beef Packing—collectively control about 80% of the market, a level of concentration that critics say suppresses competition. All four have previously faced lawsuits over alleged anticompetitive practices, though they have denied any wrongdoing in settlements that have reached tens of millions of dollars, India Today reported.

The investigation has already shaken the markets, with JBS NV’s stock tumbling 6.2% after hours and falling by 2%. This probe adds fuel to a wider political controversy, as Trump faces criticism from Republican lawmakers in agricultural states over his contentious proposal to quadruple duty-free beef imports from Argentina. Opponents argue this could saturate the market, harm U.S. ranchers, and worsen trade deficits. Senator Deb Fischer of Nebraska, a prominent critic, insisted that increasing domestic production—not imports—would be a more effective way to ease price pressures, according to .

The administration’s attention to beef prices follows Democrats’ focus on cost-of-living issues in recent elections, with Trump’s economic management receiving low approval ratings. While the Biden administration previously targeted monopolistic practices in agriculture, Trump’s stance has triggered unusual resistance from within the GOP, especially regarding his support for Argentina’s embattled President Javier Milei. The U.S. has already extended $20 billion in financial support to Argentina, a move critics claim is politically driven, according to USA Today.

Opinions among industry participants are mixed. While ranchers and lawmakers from beef-producing regions call for regulatory changes, the DOJ’s antitrust division and the USDA have promised to make enforcement a top priority. Assistant Attorney General Abigail Slater, who is overseeing the investigation, has pledged to “accelerate” the process, though analysts warn that rebuilding the nation’s cattle herd could take years, keeping prices elevated, as reported by

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