President Donald Trump directed the Department of Justice (DOJ) to investigate meatpacking companies Friday, accusing the industry of illegal practices that inflate beef costs.
Trump posted on social media that he ordered an immediate probe into firms he claims drive up prices through collusion, price fixing and manipulation. He called for swift action against what he termed illegal monopolies.
“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 wrote. “I am asking the DOJ to act expeditiously.”
The president alleged that majority foreign-owned meat packers artificially raise prices while American ranchers face blame. He vowed to protect both ranchers and consumers from what he described as criminal profiteering that threatens national food security. (RELATED: SBA Launches Probe Into Firms Allegedly Using ‘Minority’ Front To Win Multi-Million No-Bid Contracts)
The announcement drove meatpacking stocks down. Shares of JBS NV tumbled 6.2% at their lowest point. Tyson Foods Inc. dipped 2% before bouncing back into positive territory, Bloomberg reported.
Trump’s focus on beef prices comes after Democrats won off-year elections this week, with voters citing cost of living concerns. Ground beef retail prices hit record highs as the nation’s cattle herd continues shrinking, partly due to drought conditions, Bloomberg reported. Experts say herd rebuilding will take years.
The president posted again later, noting cattle prices fell while boxed beef costs rose. “Therefore, you know that something is ‘fishy,’” Trump wrote.
“If there is criminality, those people responsible will pay a steep price!” Trump added.
His approach drew criticism from agricultural state allies concerned about his plan to expand tariff-free Argentine beef imports.