By Patrick Thomas
Democratic lawmakers are preparing legislation that would break up U.S. meatpacking companies, escalating government efforts to curb record-high beef prices.
Senate Minority Leader Chuck Schumer (D., N.Y.) plans to introduce in the coming days a bill that would prevent companies from processing more than one type of meat, and could require major processors to spin off beef plants, according to a summary circulated among lawmakers.
The legislation would also call for a review of foreign-owned meat companies. That could include meatpacking powerhouse JBS, based in Brazil, and pork processing giant Smithfield Foods , which is majority owned by Hong Kong-based company WH Group.
The legislation would be part of a broader effort by Schumer and Democrats to address affordability challenges for U.S. consumers.
It also follows the Trump administration's efforts to probe competition within the meatpacking industry. Administration officials have said easing beef prices is a priority and have pursued measures aimed at lowering prices, including increasing imports.
It wasn't immediately clear whether Republicans or the Trump administration would support the Senate Democrats' measure. If passed, the legislation would effectively break up some of the country's largest meat companies, including Arkansas-based Tyson Foods, which processes one in every 5 pounds of chicken, beef and pork consumed in the U.S., along with JBS, another top producer of beef, pork and chicken.
The legislation would also impose caps on beef market concentration at both the regional and national levels, and give the Federal Trade Commission the power to order targeted divestitures, such as selling off plants or spinning off business units into new independent firms.
Meat industry officials blasted the idea, saying it would weaken America's food supply chain and lead to higher costs for consumers by making the industry less efficient. "This is absurd," said Julie Anna Potts, president of the Meat Institute, a trade group for processors.
Representatives of Tyson and JBS didn't immediately comment.
While meat industry officials regarded the Senate Democrats' planned bill as a long shot to pass into law, some said it could prompt the Trump administration to take further steps to shake up the industry.
The dynamics within the beef industry have vexed Washington's efforts to wrangle high prices. A long-running cattle shortage on American pastures, along with resilient consumer demand, are expected to keep beef prices elevated over the next few years.
Last fall the Trump administration launched an investigation into meatpacking companies, seeking evidence of possible collusion to drive up beef prices. On social media, Trump has called on cattle ranchers to lower the prices they charge meatpackers for their livestock.
Trump last month signed an executive order to quadruple beef imports from Argentina, following an earlier move to reduce some tariffs on Brazilian beef imports. So far, those efforts have had little effect on prices.
The beef industry is dominated by four companies: Tyson, JBS, Cargill and National Beef, which is owned by Brazil-based MBRF Global Foods. The companies together process roughly 80% of the country's beef.
Write to Patrick Thomas at patrick.thomas@wsj.com
(END) Dow Jones Newswires
March 03, 2026 15:39 ET (20:39 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments