Grocery shoppers across the United States are feeling the pinch as beef prices hit record highs this November, sparking widespread frustration at the checkout counter. Yet, even as prices soar, Americans aren’t shying away from their favorite steaks and burgers. Instead, the sticker shock has triggered a national reckoning—culminating in a federal investigation into the country’s largest beef processors and a dramatic shakeup within the industry.
Earlier this month, President Donald Trump directed the Department of Justice (DOJ) to launch a formal investigation into the four firms that dominate the U.S. beef processing market: JBS (Brazil-based), Cargill, Tyson Foods, and National Beef. According to a White House statement, the probe aims to uncover potential collusion, price-fixing, and price manipulation, with the ultimate goal of restoring competition and ensuring fairness throughout the beef supply chain—from the pasture to the supermarket shelf. As reported by TNND and corroborated by the USDA, these "Big Four" now control roughly 85% of U.S. beef processing, a staggering level of concentration compared to just 36% in 1980.
The journey to this point is a story of transformation, ambition, and, some would argue, unintended consequences. In the 1980s and 1990s, major packers began constructing massive, high-efficiency slaughter and processing plants. According to the USDA’s Economic Research Service, a typical top-four-owned plant processed about 417,000 head of cattle in 1980. By 2002, that number had more than doubled to over 1 million. The scale and efficiency of these operations allowed the Big Four to outcompete and absorb smaller and mid-sized regional plants, quickly consolidating market power. By the mid-1990s, the top four processors controlled more than 80% of the nation’s beef processing—a dominance that has only grown since.
Surprisingly, early research funded by the USDA in the 1990s found that this consolidation wasn’t entirely negative. Larger plants were more cost-efficient, and those savings initially trickled down to consumers in the form of lower beef prices. Lower costs helped boost demand, and for a time, cattle producers also enjoyed stronger prices. But as the saying goes, nothing lasts forever.
The market’s turning point arrived around 2015. For decades, packers kept extra plant capacity, which incentivized them to aggressively bid for more cattle to keep facilities running at full tilt. This competition helped support prices for ranchers. But once the industry hit full capacity, with plants running as close to maximum as possible, that competitive pressure vanished. Packers no longer needed to outbid each other for cattle, and the spread between what they paid ranchers and what they earned selling boxed beef widened dramatically. In some years, that price gap doubled or even tripled compared to earlier decades, according to USDA data.
Fast forward to 2025, and the beef industry finds itself in a precarious position. Tyson Foods, America’s largest meat company, announced it will shutter its beef processing plant in Lexington, Nebraska by January 20, 2026, resulting in more than 3,200 job losses. The company is also reducing shifts at its Amarillo, Texas plant, moving from two shifts a day to just one. According to reporting from BizClik, Tyson said the decision was meant to "right-size its beef business and position it for long-term success" amid mounting supply challenges and political pressure from Washington.
The closure is a direct response to a perfect storm of factors. Severe drought conditions have scorched grazing land, forcing ranchers to downsize herds. Pests like the New World screwworm, rising land costs, and persistently low profit margins—especially after the pandemic—have all contributed to the lowest number of cattle on U.S. pastures since the 1950s. Ranchers, facing mounting losses, brought more animals to slaughter in recent years, but have struggled to recover as consumer demand rebounded.
Despite the high prices on the shopfloor, meatpackers themselves have been hemorrhaging money. Tyson reported that its cattle costs for the 2025 fiscal year rose by nearly $2 billion compared to 2024, and it posted an adjusted loss of $426 million on its beef business for the year. Meanwhile, ground beef prices soared to a record high of $6.32 per pound in August 2025—a 13.9% year-over-year increase, according to BizClik and USDA data.
These challenges have not gone unnoticed in Washington. President Trump has accused imported meat packers of inflating U.S. beef prices, and his administration is taking steps to prioritize the needs of American ranchers. In 2024, the U.S. imported 16% of its beef, with Brazil—home to JBS and a major supplier of beef trimmings—playing a substantial role. High tariffs imposed on Brazilian beef by the Trump administration have introduced even higher prices for consumers, further fueling the debate over market manipulation and foreign influence.
The Nebraska Cattlemen Board of Directors, in a statement to the Nebraska Examiner, lamented the impact of Tyson’s closure: "We firmly believe there isn’t a better place to efficiently and economically raise cattle and produce beef than Nebraska. This will have a profound impact on the community of Lexington and many cattle producers." Senator Deb Fischer, a Nebraska rancher and member of the Senate Agriculture Committee, echoed these concerns, noting, "Nebraska is the beef state, and we know better than anyone the highs and lows of the cattle market. It’s no secret that just a few years ago packers like Tyson were making windfall profits while the rest of the industry was continuously in the red."
As the DOJ probe unfolds, the stakes couldn’t be higher. The investigation is not only about restoring competition and fair pricing, but also about addressing the underlying vulnerabilities exposed by decades of consolidation. The White House argues that the combination of record-high beef prices, shrinking margins for ranchers, and the dominant market share of just four companies strongly suggests the possibility of market manipulation. The DOJ, for its part, says its goal is to “restore competition” and ensure that pricing is fair for everyone—ranchers, processors, and, most importantly, consumers.
For now, the beef industry stands at a crossroads. Tyson’s plant closure is expected to save the company money, but it will also contribute to the ongoing supply chain disruption. Consumers are left paying more at the grocery store, while ranchers and meatpackers alike grapple with financial losses. With the federal investigation underway, all eyes are on Washington—and on the Big Four—to see whether the market can be rebalanced in a way that benefits every link in the chain.
As Americans fire up their grills and gather around dinner tables this winter, the story of beef in the U.S. remains one of resilience, uncertainty, and the ever-present search for a fair deal.
