Following a Presidential directive, the federal government has established a taskforce to investigate “anti-competitive behavior” among meat processors and other segments of the U.S. food industry.  Initially the probe involving the Department of Justice and the Federal Trade Commission will focus on the red meat industry with the high price of beef as the dominant economic and political issue.

Announcing the Presidential Executive Order establishing the taskforce, the White House noted that “all necessary appropriate actions will be taken not just to the food supply chain but whether control of food-related industries by foreign entities is increasing the cost of food products in the U.S. or creating a national or economic security threat to Americans.”  The statement added, “anti-competitive behavior, especially when carried out by foreign-controlled corporations threatens the stability and affordability of America’s food supply.” In the event of disclosure of criminal collusion, proceedings will be initiated as appropriate.  Red meat processing in the U.S. is an oligopoly with a high proportion of foreign ownership.

So much for the $5 million ‘donation’ by JBS.

Agriculture economists attribute the high price of beef to disparity between supply and demand occasioned by herd reductions following drought and low prices in recent years. Placing tariffs on imported beef and especially from Brazil exacerbated the supply side of the equation.

It remains to be seen whether the Food Supply Chain Security Taskforce will confirm collusion or whether this is an exercise in scapegoating.  Should food inflation continue, the probe initially directed at the beef industry may be extended to other sectors including broiler meat and eggs. 

It is apparent that the largest five egg producers and possibly others in the U.S. will be confronted by the same intrusive and ultimately expensive civil law suits as experienced by the broiler and hog industries. The same claims of collusion using commercial databases and alleged price-fixing will form the basis of class-action lawsuits experienced by hog packers and broiler integrators that led to significant payouts to plaintiffs and generous fees for law firms.

With the restoration of shelf prices for shell eggs, pressure on the industry, exemplified by previous action by state attorneys general has abated.  Unprecedented escalation in the price of eggs following significant depopulation resulting from HPAI focused attention on the product, eroding consumer goodwill and stimulating the ire of the White House. Should losses that occurred during the first quarter of this year reoccur in 2026, the industry could well be faced with investigations by the task force especially given an election year.  Price restraint by both producers and retailers would appear prudent given that the Administration has politicized supply-demand realities, agricultural economics and the preparation and interpretation of USDA production statistics.