President Donald Trump has ordered the Department of Justice (DOJ) to investigate the “Big Four” meatpackers, who control the overwhelming majority of the nation’s beef products, for what he says is a history of “price fixing” and “illicit collusion.”
“I have asked the DOJ to immediately begin an investigation into the Meat Packing Companies who are driving up the price of Beef through Illicit Collusion, Price Fixing, and Price Manipulation,” Trump announced in a Truth Social post:
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. 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. I am asking the DOJ to act expeditiously. Thank you for your attention to this matter! [Emphasis added]
Trump also said that while cattle prices have decreased, the cost of boxed beef has increased, “therefore, you know that something is ‘fishy,’” the president wrote.
“We will get to the bottom of it very quickly,” Trump posted. “If there is criminality, those people responsible will pay a steep price!”
R-CALF USA, which represents American cattle ranchers and beef producers against corporate consolidation of the industry, praised the move.
“We greatly appreciate President Trump’s announcement that he’s directed the Department of Justice to investigate the beef supply chain to determine if there are any violations of our fair competition laws or antitrust laws,” CEO Bill Bullard said in a statement:
There has long been a disconnect between cattle prices and beef prices, and we believe this is evidence of market failure. We welcome this investigation to ensure that cattle producers receive competitive prices for their cattle, and that consumers pay prices set by a competitive market rather than a monopolistic one. [Emphasis added]
Trump is hoping the DOJ will probe if Brazil-based JBS, Cargill, Tyson Foods, and National Beef have broken antitrust laws in acting as monopolies to control the supply and prices of beef in the United States.
In 1980, these four meatpackers controlled just 36 percent of the U.S. beef market. Today, the Big Four control 85 percent of the market.
“Industry consolidation has crushed competition and hammered cattle producers. In the 1980s, the top four packers purchased one-third of all fed cattle; by the mid-1990s, that share exploded to over 80% and has only grown more concentrated since,” a press release from the White House states.
“This has led to the exploitation of American consumers, farmers, and ranchers,” the release continues. “In fact, mounting evidence shows this monopoly power has slashed payments to ranchers, reduced herd sizes, driven up consumer prices, and threatened America’s food supply chain.”
John Binder is a reporter for Breitbart News. Email him at [email protected]. Follow him on Twitter here.
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