Trump Administration Cracks Down on Foreign-Owned Meat Packing Cartels – The White House (.gov)

Report on the Investigation into the U.S. Meatpacking Industry and its Alignment with Sustainable Development Goals

Directive for Federal Investigation

A directive has been issued to the Department of Justice to initiate an investigation into the largest meatpacking companies in the United States. The investigation will focus on allegations of anti-competitive practices, including potential collusion, price fixing, and price manipulation. The primary objective is to assess the market conduct of dominant firms and its impact on producers and consumers.

Analysis of Market Concentration

The U.S. beef processing market exhibits a high degree of concentration, which has significant implications for market competition and sustainability. Key data points include:

• Dominant Firms: Four companies—JBS, Cargill, Tyson Foods, and National Beef—control approximately 85% of the U.S. beef processing market.
• Historical Trend: This represents a substantial increase in market concentration from 36% in 1980.
• Foreign Ownership: Two of the four dominant companies, including the world’s largest meat packer, are foreign-owned or have significant foreign control.
• Control over Supply Chain: In the 1980s, the top four packers purchased one-third of all fed cattle. By the mid-1990s, this share had increased to over 80%, indicating significant monopsony power over cattle producers.

Impacts on Stakeholders and Sustainable Development Goals (SDGs)

The alleged market practices have wide-ranging consequences that directly challenge the achievement of several UN Sustainable Development Goals.

1. SDG 2: Zero Hunger: The investigation addresses threats to food security. Artificially inflated consumer prices can limit access to affordable nutrition for working families, while supply chain vulnerabilities created by market concentration threaten the stability of the national food supply.
2. SDG 8: Decent Work and Economic Growth: The economic viability of American farmers and ranchers is at risk. Suppressed payments to cattle producers undermine their livelihoods and hinder inclusive and sustainable economic growth within the agricultural sector.
3. SDG 10: Reduced Inequalities: The concentration of market power exacerbates economic inequality. It allows a small number of large, foreign-dominated conglomerates to profit at the expense of smaller, independent American producers and consumers, widening the economic gap.
4. SDG 12: Responsible Consumption and Production: A non-competitive market can stifle the development of more sustainable and resilient food production systems. Ensuring fair market practices is a prerequisite for fostering production patterns that are economically and environmentally sustainable.

Investigation Objectives and Contribution to Global Goals

The federal investigation aims to achieve specific outcomes that align with the principles of sustainable development.

• Uphold Justice and Strengthen Institutions (SDG 16): By examining potential violations of antitrust laws, the investigation seeks to enforce legal frameworks and ensure corporate accountability, thereby strengthening the institutions responsible for maintaining fair markets.
• Promote Fair Competition (SDG 8 & SDG 10): The core objective is to identify and eliminate any illegal collusion or anti-competitive behavior. Restoring fair competition is essential for protecting the economic interests of small-scale producers and ensuring a more equitable distribution of value along the food supply chain.
• Ensure Food Security (SDG 2): By addressing price manipulation and other market distortions, the action aims to protect consumers from artificially high prices and safeguard the long-term security and resilience of the nation’s food supply.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 2: Zero Hunger
   • The article discusses threats to “food security” and the stability of “America’s food supply chain.” It also highlights the economic pressure on “farmers” and “ranchers,” who are the primary food producers. These themes directly connect to SDG 2, which aims to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture.
2. SDG 10: Reduced Inequalities
   • The investigation targets actions that lead to the “exploitation of American consumers, farmers, and ranchers.” By artificially inflating prices for consumers while slashing payments to producers, the alleged market manipulation exacerbates economic inequalities, benefiting a few large corporations at the expense of working families and small-scale producers.
3. SDG 16: Peace, Justice and Strong Institutions
   • The article centers on a Department of Justice investigation aimed at rooting out “illegal collusion, price fixing, and price manipulation.” This action represents an effort by a state institution to enforce laws (specifically antitrust laws), ensure accountability, and combat the corporate equivalent of corruption, which aligns with the goal of building effective, accountable, and inclusive institutions.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 2: Zero Hunger
   • Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers… The article’s concern with how giant meat packers have “squeezed America’s cattle producers” and “slashed payments to ranchers” directly relates to protecting and improving the incomes of food producers.
   • Target 2.c: Adopt measures to ensure the proper functioning of food commodity markets… The investigation into “price fixing” and “collusion” is a direct measure aimed at restoring fair competition and ensuring the proper functioning of the meat market to limit price manipulation.
2. Under SDG 10: Reduced Inequalities
   • Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory… policies and practices… The investigation seeks to eliminate practices like “coordinated pricing or capacity restrictions” that create unequal outcomes, where a few dominant companies profit excessively while consumers and producers are harmed.
3. Under SDG 16: Peace, Justice and Strong Institutions
   • Target 16.5: Substantially reduce corruption and bribery in all their forms. The investigation into “illegal collusion” and “price fixing” can be seen as an action against corporate corruption that undermines fair economic systems.
   • Target 16.6: Develop effective, accountable and transparent institutions at all levels. The launch of an investigation by the Department of Justice is an example of an institution taking action to enforce laws and hold powerful entities accountable.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Market Concentration Percentage:
   • The article explicitly states that the “Big Four” meat packers “currently dominate 85% of the U.S. beef processing market, up from just 36% in 1980.” This percentage is a direct indicator of market concentration and can be used to measure progress towards restoring fair competition. A decrease in this percentage would indicate success.
2. Consumer Prices:
   • The article implies that consumer prices are an indicator by mentioning that the companies “jacked up prices at the grocery store” and “driven up consumer prices.” Tracking the consumer price index for meat products would be a way to measure the impact of these market practices on working families.
3. Producer Income/Payments:
   • The article implies that the income of producers is a key metric by stating that monopoly power has “slashed payments to ranchers.” Measuring the average income or the prices received by cattle producers for their livestock would serve as an indicator of whether their economic situation is improving.

4. SDGs, Targets and Indicators Table

Source: whitehouse.gov