Post by : Badri Ariffin

On Friday, former President Donald Trump urged the Department of Justice to take action against foreign-owned meat packers, accusing them of inflating beef prices to unprecedented levels in the United States. This initiative follows increasing public anxiety over high living expenses and recent electoral challenges for the Republican Party.

Trump highlighted prominent meat producers, alleging that collusion and price manipulation were major factors driving up costs. “We will always defend our American ranchers,” he emphasized, noting that many leading meatpacking firms have substantial foreign ownership, which he believes threatens both food affordability and national supply chain stability.

The rise in beef prices is attributed to several causes, including drought conditions affecting cattle production, long-standing low market prices, and a significant decline in the U.S. cattle herd—the smallest seen in decades. Moreover, Trump's tariffs on Brazil, a key beef exporting nation, have curtailed imports even though domestic demand is robust, leaving consumers hesitant to switch to chicken or pork despite the higher prices.

The U.S. beef market remains concentrated, with four major corporations controlling a significant portion of the supply. Among these, Brazil's JBS is the largest beef producer domestically and is also a major player in poultry and pork production. The company has faced legal challenges regarding price-fixing; in 2022, it resolved a $52.5 million lawsuit, alongside Tyson Foods and others, related to alleged manipulation of slaughter numbers, while denying any wrongdoing.

Senators Markwayne Mullin from Oklahoma, Cindy Hyde-Smith from Mississippi, and Tim Sheehy from Montana met with Trump to deliberate on the fluctuating beef prices. Mullin indicated that the White House is inclined to involve the Justice Department in the inquiry, drawing parallels to antitrust issues encountered by meatpackers in 2019.

Additionally, Trump's remarks come shortly after he suggested that the U.S. might consider importing beef from Argentina to help alleviate domestic costs, a proposal that has faced backlash from American cattle ranchers. Increasing food prices remain a cross-party issue, with previous administrations advocating for enhanced competition and measures against price gouging within the meat industry.

#Global News #Business News #Economic