President Donald Trump vowed legal action to allow farmers and ranchers to process their own food, part of an effort to break what he called a “powerful monopoly” controlled by the four largest meat processors.
Trump did not name any companies or provide further details on the proposal, but he said in a social media post that he is “authorizing legal documents to be drawn.” In beef alone, four firms control 85% of processing: JBS, Cargill, Tyson Foods and National Beef.
The White House has made lowering beef prices a priority ahead of the fall elections as consumers are inundated with a prolonged period of high food prices. Meat companies, including Tyson, have said prices are unlikely to recover in the near term as a livestock shortage is expected to continue into next year.
Since May, the administration has asked grocers to lower costs and opened an antitrust investigation into top producers. Earlier this month, Trump announced he would lift a ban on Mexican cattle imports to allow more animals into the U.S. to be processed.
“For years I have heard that [farmers and ranchers] have had a tremendous problem with the Big Processors, who many say are a nasty Monopoly,” Trump said in the post. “They make life miserable for our wonderful Farmers and Ranchers, and I can’t let that happen.”
In a separate post, Agriculture Secretary Brooke Rollins said “big announcements” were coming starting Monday that would include expanding ranchers' ability to sell across state lines, fighting consolidation so small processors can compete and rescinding outdated guidance.
Republicans and Democrats have previously floated bills or conducted investigations designed to encourage more competition, in hopes that prices would come down if ranchers had more options to sell their livestock.
The Biden administration also expanded funding for many small processors in an attempt to open up new markets as part of its plan to tame food inflation, though many of those grants were ultimately frozen or canceled under Trump.
Agriculture groups swiftly denounced the White House’s plan to allow farmers and ranchers to process their own food, warning it risked undermining global confidence in the safety of the U.S. meat supply.
The National Cattlemen's Beef Association, which represents ranchers, said while it “strongly supports” increasing competition in the cattle markets and creating more opportunities for small and regional beef processors, it was opposed to Trump’s proposal.
“Weakening federal meat inspection and food safety standards, as President Trump has suggested, is not the answer,” the organization said. “Constant government interference creates uncertainty for producers making long-term decisions about their businesses and the future of the cattle herd. ... Washington needs to stop trying to manage the cattle business and let the market work.”
