DOJ closed meat probe just before Trump's investigation demand
The U.S. Justice Department closed a yearslong antitrust probe into the meatpacking industry during the COVID-19 pandemic just weeks before President Donald Trump demanded a fresh investigation, according to people familiar with the matter.
Trump rattled the meat industry late last week by calling for an immediate probe into the pricing practices of the biggest companies, which process, package and distribute meat. The nascent probe of the highly concentrated industry is poised to focus on the same firms that had just been told they were in the clear following about five years of antitrust scrutiny.
Federal officials formally notified companies recently that they were closing a probe into sharp price increases during the pandemic’s onset in 2020, said the people, who asked not to be identified discussing the investigation. The earlier inquiry started during the first Trump administration and continued under former President Joe Biden.
National Beef Inc. said it hadn’t heard from the Justice Department following Trump’s comments, but noted that the previous probe closed with no findings. Cargill Inc. declined to comment. Tyson Foods Inc. and JBS NV didn’t respond to requests for comment.
US beef prices have skyrocketed to record levels, as herds have dwindled, challenging Trump’s promise to make groceries more affordable. Trump has vowed to boost beef imports from Argentina, a pledge that sparked mixed reactions with ranchers criticizing the move and the meat industry welcoming the prospect of additional shipments.
“I am asking the DOJ to act expeditiously,” Trump said in a social media post last week. “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.”
Trump blamed “majority foreign owned” companies for soaring beef prices, though both Cargill and Tyson are based in the U.S. National Beef is the U.S. unit of Brazilian company MBRF Global Foods Co.
Tyson, JBS, Cargill and National Beef control 85% of U.S. beef processing market, according to the Agriculture Department. The companies recently met with officials from the White House National Economics Council to discuss the industry and impact that Argentinian imports would have on grocery pricing, according to another person familiar with the matter who also asked not to be identified as the meeting was private.
The White House referred comments to the Justice Department and USDA. USDA said it was working on policies to reduce consumer beef prices while helping ranchers.
“These actions coupled with President Trump’s work to secure lasting markets for beef producers abroad sends a strong message to American cattle producers—raise more beef and rebuild the herd,” an agency spokesperson said in a statement.
The Justice Department declined to comment.
Antitrust investigators involved in the now-closed probe raised potential issues internally at the end of the Biden administration about other aspects of the market. They flagged questions about how meatpackers price their contracts on the so-called spot or cash cattle market and urged closer scrutiny of those practices, according to a person familiar with the matter.
The USDA said in a 2024 report that there has been concern about the decline in negotiated cash sales, and the use of marketing agreements for future sales that are based in part on the spot or cash market prices reported by the USDA Agricultural Marketing Service. By pricing their contracts in that way, the companies may not have an incentive to bid competitively when buying cattle in the cash market since it could impact the price of their formula contracts, said the person, who also asked not to be identified discussing internal discussions.
It’s unclear whether antitrust officials looked further into that issue, or whether it’ll be part of the fresh investigation.
‘New assignment’
Assistant Attorney General for Antitrust Gail Slater responded to Trump’s post, “ending the week with a new assignment, thank you for your attention to this matter, sir.”
Slater, whose father-in-law owns a beef cattle ranch in Oregon, has said that agriculture and grocery pricing are among her top priorities. Since taking the position in March, Slater has met several times with farmers and ranchers on antitrust issues in the industry and in September, the antitrust division and USDA signed a new memorandum of understanding to cooperate on law enforcement and regulations.
The USDA can refer cases to the Justice Department to prosecute under the Packers & Stockyards Act, an agriculture-specific antitrust law from 1921 that forbids unfair, deceptive, unjustly discriminatory and monopolistic practices in the livestock, meat, and poultry industries. During the Biden administration, the antitrust division settled cases against Wayne-Sanderson Farms—which was being acquired by Cargill at the time—and Koch Foods Inc. over alleged unfair or deceptive practices against chicken farmers that had been filed under the law.
While Trump has been targeting the meatpackers for high prices, the companies have been reporting losses as ranchers have kept herds at the smallest in more than half a century as they grapple with high interest rates, expensive feed and droughts.
“Beef demand is very strong, and the cattle herd is the smallest it’s been in 75 years,” said Sarah Little, spokeswoman for the Meat Institute, a trade group representing meatpackers and poultry processors. “Cattle producers are enjoying record prices, while beef packers have had negative margins since September 2024.”
Tyson, the U.S.’s biggest meatpacker, on Monday reported an adjusted operating loss of $426 million in its beef segment for the fiscal year, while projecting further losses for 2026. JBS, the world’s largest meat supplier, on Thursday also reported a quarterly operating loss in its U.S. beef business.
The administration’s effort on beef follows an earlier push to lower egg prices, which became an inflation bellwether that highlighted consumer worries over high costs in grocery stores. The U.S. responded by stepping up egg imports and boosting support for chicken farmers.
With assistance from Raphael Almeida and Erin Ailworth.
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