Beef Giants Under Fire

A Small Town Shock

In Lexington, Nebraska, more than 3,000 workers at a Tyson beef plant suddenly lost their jobs. Many had worked there for decades. Families worried about rent, health care, and their future.

The company said it needed to “adjust” its business. But for workers and local leaders, the timing felt strange. Beef prices in stores are very high. Tyson also reported strong revenues. So why close a large plant?

Lexington is a small town. When the plant closed, it did not only hurt workers. It hurt schools, shops, and local businesses. Some fear the town may never fully recover.

Why Is Beef So Expensive?

Over the past few years, beef prices have increased much faster than general inflation.

Between 2020 and 2025:

• Steak prices rose by more than 60%.

• Overall inflation rose about 25%.

• In one year alone, steak prices jumped around 15%.

For many families, this matters. Beef is a common food in American homes. Higher prices mean higher grocery bills.

The “Big Four” Companies

Four companies control most of the beef market in the United States:

• Tyson Foods

• JBS

• Cargill

• National Beef

Together, they process about 85% of American beef.

Because so few companies control the market, critics say they have too much power.

The Main Accusation: Price Fixing

Cattle ranchers, grocery chains, and restaurant companies have filed lawsuits against the Big Four.

They claim:

• The companies worked together to limit beef production.

• They closed or slowed plants to reduce supply.

• They pushed cattle prices down (what ranchers are paid).

• They kept grocery prices high (what customers pay).

If true, this would mean the companies increased their profits by controlling supply on both sides.

The companies deny this. They say they are only reacting to market conditions, such as droughts, labor shortages, and changes in demand.

Covid-19 and Market Control

During the pandemic, some beef plants closed because workers were sick. In theory, other companies could have increased production and gained more market share.

But lawsuits claim something different happened. According to ranchers:

• All four companies reduced production at similar times.

• Beef prices for consumers rose sharply.

• Prices paid to ranchers fell.

Government investigations began during this period. Some poultry executives were charged in separate cases. However, several criminal cases ended in acquittals. Other investigations were later closed or paused.

Politics Enters the Fight

Beef prices became a political issue during the 2024 election campaign.

After returning to the White House, Donald Trump promised to reduce food prices. He later ordered a new investigation into possible anti-competitive behavior in the meat industry.

His attorney general, Pam Bondi, announced that the investigation had begun.

At the same time, the administration allowed more imported beef from Argentina to enter the U.S. at lower tariff rates. The idea was simple: more supply might lower prices.

But American ranchers were unhappy. They argued that imported beef would hurt their businesses, while the Big Four processors would still control pricing.

Foreign Ownership Concerns

Two of the largest beef processors have strong ties to Brazil:

• JBS is based in Brazil.

• National Beef has major foreign ownership.

Some politicians say this raises food security concerns. They worry that foreign-controlled companies now have large influence over the American food supply.

Supporters of the companies say they provide jobs and investment and operate legally within U.S. markets.

Profits vs. Losses

The companies argue that they are facing “headwinds”:

• The U.S. cattle herd is at a historic low.

• Cattle prices have increased.

• Some divisions reported losses.

However, public earnings reports show that certain beef divisions have also posted record revenues in recent years.

This creates confusion for the public:

• If profits are strong, why close plants?

• If margins are tight, why are retail prices still high?

The Human Cost

Behind the legal battles and political speeches are real people.

In Lexington:

• Many workers were close to retirement.

• Families worry about losing homes.

• Schools fear falling enrollment.

• Local businesses expect losses.

An economic study estimated billions of dollars in long-term impact for the region.

For workers, this is not about market theory. It is about paying bills and keeping health insurance.

What Happens Next?

Several outcomes are possible:

1. The government could bring antitrust cases.

2. Smaller meat processors could receive support to increase competition.

3. More beef imports could lower prices.

4. Or nothing significant could change.

Right now, beef prices remain high. Lawsuits are ongoing. Political pressure is building.

The Bigger Question

This situation raises a larger issue:

What happens when a small number of companies control most of a country’s food supply?

Supporters say large companies create efficiency and stable supply.
Critics say too much concentration reduces competition and hurts workers, ranchers, and consumers.

For families at the grocery store and workers in towns like Lexington, the answer is not abstract. It is personal.

And for many Americans, the cost of beef has become a symbol of a bigger struggle — the rising cost of living and who truly controls the market.

Source: https://www.theguardian.com/us-news/ng-interactive/2026/feb/25/beef-packers-under-fire-prices-soar