Senate Democrats have put forward legislation intended to “break up” what they say is a US “meatpacking monopoly” as they seek to address cost-of-living pressures.
Senate Democratic Leader Chuck Schumer has introduced the Family Grocery and Farmer Relief Act, which also aims to “rein in foreign-controlled corporate giants, and use federal tools to stop unfair pricing that drives up grocery bills”.
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According to a statement posted on the Senate Democrats’ website, the proposal would make it “unlawful for a major meatpacking conglomerate to control more than one major type of meat, forcing the biggest players to choose a line of business”.
The bill would also establish regional and national limits on concentration in the beef market.
Where those thresholds are exceeded, it would instruct the Federal Trade Commission (FTC) to require “targeted” divestitures.
These could include “selling off plants, facilities, or business units, or spinning off new independent firms – until markets are competitive again”, the statement read.
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By GlobalDataUnder the framework set out in the legislation, the FTC would be responsible for designing and enforcing divestiture plans, including conditions aimed at maintaining or improving employment and upholding collective bargaining agreements.
The proposal further seeks to restrict foreign leverage in the US meat market, granting the FTC authority linked to competition and national security concerns.
Supporters argue the bill addresses what was described as “unfair and unjustly discriminatory pricing practices in retail and wholesale meat markets”.
Such conduct has “hit independent and neighbourhood grocers hardest”, according to the statement.
Schumer said “the stranglehold of the meatpacking monopoly” has weakened supply chains and enabled price gouging at the grocery store.
Industry group the Meat Institute criticised the bill, warning it would “decimate” the meat and poultry industry and lead to higher prices for consumers.
Meat Institute president and CEO Julie Anna Potts said: “This proposal is absurd. Imagine the federal government mandating that Ford only manufacture trucks, while forcing them to sell off all their other vehicle lines to separate small businesses. It is unthinkable in a free market.
“This proposal assumes there are well capitalised and capable buyers lining up to enter the meat and poultry business, and that with the flip of a switch production would simply continue.”
Potts also pointed to cattle supply conditions, saying the US has the smallest herd in 75 years and that prices reflect constrained supply and strong demand. US meat giant Tyson Foods has repeatedly pointed to those pressures.
The proposal arrives as federal attention on meatpacking concentration has increased under President Donald Trump’s administration.
In November, the US Department of Justice opened an antitrust investigation into alleged price fixing by meatpackers, following Trump’s claim that beef prices were “artificially inflated.”
A White House notice cited US processors Tyson, Cargill, National Beef, which is owned by Brazil major Marfrig Global Foods, and JBS, also headquartered in Brazil. Together, they control about 85% of US beef processing, compared with 36% in 1980, it said.
In December, Trump signed an order establishing DoJ and FTC task forces focused on alleged price fixing in the food sector and risks linked to foreign control.
