The Department of Justice is throwing hot charcoal on the meatpacking industry’s grill, as the agency has reportedly opened an antitrust investigation that could have wide-ranging implications for the beef market. The probe, which comes following repeated pressure from President Donald Trump, is happening as beef prices continue to rise, causing consumers to have a negative view of the economy.
What is the investigation about?
The DOJ is looking into whether “large meatpackers that supply American consumers engaged in criminal anticompetitive conduct,” according to The Wall Street Journal, which first reported the investigation. The probe is “looking at all of the major companies that sell beef in the U.S.” Four companies currently control 85% of the country’s beef market share: the U.S.-based Cargill and Tyson Foods, and the Brazilian-owned JBS and National Beef.
The crux of the investigation is whether these companies “reached illegal agreements over how they purchase cattle from ranchers,” said Bloomberg. The Justice Department reportedly believes beef companies could be doing this to cut costs, as “beef processors have been losing money for the last 20 months as they pay producers higher prices for cattle.” The investigation appeared to come at Trump’s behest. The president said in November 2025 he would “order the Justice Department to investigate the meatpacking industry for alleged collusion,” said Axios.
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Other food companies, like McDonald’s, have also accused “big beef packers of collusion and price-gouging,” said The Guardian. As of now, the probe remains a noncriminal investigation. None of the companies or their employees “have been accused of any wrongdoing and probes don’t always lead to charges or lawsuits being filed,” said Bloomberg. JBS “isn’t aware of any criminal investigation” and “operates in a highly regulated industry and is committed to complying with all applicable regulations,” a spokesperson for the company told the Journal. Cargill, Tyson Foods and National Beef haven’t commented.
What is the bigger picture?
Questions about the beef industry aren’t new, as ranchers have “long complained about anticompetitive conduct by the four companies,” said Bloomberg. Evidence of consolidation within the beef industry is “reflected in sharply increased spreads between cattle prices and wholesale beef prices,” said a U.S. Department of Agriculture report from 2024, with “stronger evidence of market power in the meatpacking industry.”
But a criminal investigation perhaps beginning “raises the stakes considerably for the companies and their executives, who face the prospect of steep fines and prison time,” said Bloomberg. A prior investigation “into alleged price-fixing during the Covid-19 pandemic closed without action.” The current high beef prices are “driven mostly by structural factors,” Dennis Follmer, the chief investment officer at Montis Financial, told Axios. Consumers “shouldn’t expect near-term relief.”
The prospect of Trump becoming directly involved due to rising prices remains on the table, as the president’s approval rating on the cost of living has been consistently falling throughout 2026. When Trump called for the DOJ to investigate meatpackers in November 2025, the average price of ground beef was $6.54 per pound, up 91 cents year-to-year, according to the Federal Reserve Bank of St. Louis. It has continued rising since then and is currently $6.70 per pound.
