Trump Targets ‘Big Four’ Meat Packers – Especially the Brazilian Ones – for Possible Collusion

Last week, President Trump directed the Dept. of Justice to investigate the country’s largest meat packing companies – or maybe just the foreign-owned ones – for potential collusion, price fixing and price manipulation.

On the one hand, the White House press release specified “the ‘Big Four’ meat packers — JBS, Cargill, Tyson Foods and National Beef — [which] currently dominate 85% of the U.S. beef processing market, up from just 36% in 1980.”

On the other hand, “Two of these companies, including the largest meat packer in the world, are either foreign-owned or have significant foreign ownership and control … This decisive action targets the foreign-dominated conglomerates that control America’s meat supply and have been accused of artificially inflating prices at the expense of farmers, ranchers, and working families.”

The president apparently was speaking of JBS of Brazil and the 85% of National Beef controlled by Marfrig, another Brazilian company. Brazil has been a target of the American president, as Trump supports the country’s far-right former President Jair Bolsonaro, a longstanding ally who is facing prosecution over his alleged role in a plot to overturn the 2022 Brazilian election.

“For too long, a handful of giant meat packers have squeezed America’s cattle producers, shrunk herds and jacked up prices at the grocery store,” the White House media release said. “By examining whether these companies have violated antitrust laws through coordinated pricing or capacity restrictions, this investigation will root out any illegal collusion, restore fair competition and protect our food security.

“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.

“This has led to the exploitation of American consumers, farmers, and ranchers,” the release concluded. “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.”