Beef has never been pricier—and meatpackers are suffering

Since 2020, the cost of beef in America's stores has risen by approximately 70%, significantly outpacing general inflation rates. President Donald Trump has pointed the finger at the meatpacking industry, calling its middlemen a "nasty monopoly". Four major companies—Tyson Foods, Cargill, JBS, and National Beef—account for 85% of America's cattle slaughter.

Previous investigations have found these companies guilty of price-fixing between 2014 and 2022, though all have denied any wrongdoing. Despite the soaring beef prices, the "Big Processors" are not experiencing financial prosperity. Tyson's stock price has dropped by 40% since 2021, and the company now anticipates a $775 million loss in its beef business this year.

JBS reported a $427 million loss in its North American business for the first half of 2026. Joshua Specht, author of "Red Meat Republic", notes that beef is a cyclical industry, with busts often triggered by droughts that increase feed costs and force ranchers to reduce their herds. When cattle become scarce, prices rise, prompting ranchers to expand their herds again.

This cycle typically lasts a decade. The current industry troubles stem from a decade of drought which reduced American ranchers' herds, leading to scarce cattle and inflated prices. As a result, meatpackers are paying more than ever to run their slaughterhouses. However, retail beef prices have not matched this increase, causing consumers to switch to more affordable chicken.

Meatpackers are cutting costs by shutting down plants, leading to job losses. Despite the current challenges, ranchers have not yet begun rebuilding their herds, giving little hope for a near-term price relief. While President Trump has taken steps to support farmers, such as the Ranchers First Initiative, industry experts argue these measures are unlikely to significantly impact pricing.