U.S. meat companies face a new assault on their ability to operate without unnecessary constraints. Democrats in the U.S. Senate are preparing legislation that would completely restructure the meat processing industry and would likely set back the industry decades in its ability to operate efficiently and keep meat and poultry affordable for Americans. The Wall Street Journal reported last Wednesday that 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 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 global protein giant JBS SA, 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.
Move Will Drive Up Prices
Neither initiative however addresses the reason why beef prices are so high, that the smallest cow herd in 75 years has produced a beef supply shortage just when demand for beef at home and abroad remains extremely strong. Meat industry officials immediately blasted the Democrats’ move, 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 trade group the Meat Institute. It is not going to reduce costs for consumers, but clearly will drive up costs for producers and consumers, she said. The ensuing chaos and likely significant drop in meat production will upset delicate supply and demand forces, ultimately forcing retail and foodservice to hike consumer prices for beef, pork and poultry. It comes at exactly the wrong time when food prices are already too high for many American families, she said.
It wasn’t immediately clear whether Republicans or the Trump administration would support the Senate Democrats’ measure, said the WSJ. If passed, the legislation would effectively break up some of the country’s largest meat companies, including Tyson Foods, which processes one in every five 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. While meat industry officials regard the Senate Democrats’ planned bill as a long shot to pass into law, some say it could prompt the Trump administration to take further steps to shake up the industry, said the WSJ. The dynamics within the beef industry have vexed Washington’s efforts to wrangle high prices. Last fall, the Trump administration launched an investigation into meatpacking companies, seeking evidence of possible collusion to drive up beef prices. Trump has also called on cattle ranchers to lower the prices they charge packers for livestock. More on the proposed legislation and its consequences on the next page.
Four Firms Process 80% Of Beef
The beef industry is dominated by four companies, Tyson, JBS, Cargill and National Beef, which is owned by Brazil-based MBRF Global Foods, noted the WSJ. The companies together process roughly 80% of the country’s beef. CBW data reveals that the four firms have accounted for less than 75% of commercial (total) cattle slaughter for the past decade or more.
Meatpackers spent decades consolidating and expanding their scale, seeking to lower costs, diversify their businesses and increase leverage with suppliers and customers, said the WSJ. The industry has said the moves help keep food cheap for Americans. The WSJ article however failed to note that consolidation occurred more than 20 years ago and that total industry cattle slaughter capacity has declined sharply as well. CBW estimates that the one-time capacity of the 73 largest federally-inspected beef processing plants is 129,000 head per day. The capacity total in 2011 was 138,000 head.
The U.S. cattle supply is at its lowest level in 75 years, according to USDA data, said the WSJ. Ranchers have spent years shrinking their herds after losing money during the COVID-19 pandemic and are struggling with severe drought. With the strongest cattle prices in years, ranchers have been hesitant to add more livestock, which has helped keep domestic beef supplies constrained. Higher cattle prices have cost meatpackers billions of dollars, companies have said. Meatpacking companies are closing plants and slashing shifts in response. Tyson Foods in January closed its Lexington, Neb., beef plant. It also cut production in half at its larger Amarillo, Texas, facility. JBS and Cargill are closing smaller facilities that package ground beef and other products for grocery stores. Schumer in January lambasted Tyson’s closure of the Lexington plant and urged USDA to step in to save the facility.
Washington lawmakers have previously targeted meatpackers and their market power, said the WSJ. CBW notes that their targeting goes back many years. But numerous investigations by previous administrations have never found any evidence to curtail the ability of meat companies to operate, as the Democrats are attempting to do. During the Biden administration, executives for the largest meatpackers were called before Congress to testify about industry consolidation. The Biden administration also doled out hundreds of millions of dollars to smaller meatpacking companies, aimed at helping them compete with industry giants, said the WSJ.
JBS STARTS $150M CACTUS EXPANSION
JBS USA, the industry’s largest beef processor in terms of capacity, breaks ground on a $150M expansion project at its beef production facility in Cactus, Texas. The project includes construction of a new, state-of-the-art fabrication floor and an expanded ground beef room. This will strengthen the long-term competitiveness of one of the company’s largest and most important beef plants, says JBS. This major investment is designed to increase operational efficiency, enhance production capacity and create new opportunities for cattle producers, customers, team members and the surrounding rural communities, it says. Construction is underway, with expectation of being completed by early 2027.
This groundbreaking marks an exciting moment for JBS USA, its team in Cactus and cattle producers, says Wesley Batista Filho, CEO of JBS USA. The investment reflects JBS’s long-term commitment to the U.S. beef industry and the rural communities where it lives and works. By modernizing and expanding the Cactus facility, JBS is ensuring that its business and the thousands of families who depend on it remain positioned for success now and in the future, he says. The Cactus facility, located in the Texas Panhandle, currently employs more than 3600 team members and partners with local cattle producers, purchasing approximately $3.3 billion in livestock annually. Elected officials say the reinvestment marks a major step forward for the region, highlighting its economic significance and benefits for Texas producers. Beyond its facility upgrades, JBS USA continues to invest in rural communities like Cactus through its Hometown Strong and Better Futures programs, it says. Since 2020, JBS has invested more than $11M in Cactus community projects, including parks, enhanced local facilities, nonprofit support, affordable housing and tuition-free community college for workers’ children.
MEAT SALES HIT RECORD HIGH IN 2025
RETAIL meat sales in the U.S. hit a record high in value in 2025. Sales reached $112 billion and saw a one pound per person increase, according to market research and technology company Circana. That’s according to the 21st annual Power of Meat report from 210 Analytics, which was released at the Annual Meat Conference by the Meat Institute and FMI-The Food Industry Assn. 210 Analytics said of the five dinners per week shoppers prepare at home, 90% already contain a portion of meat and/or poultry. Circana research showed that 45% of shoppers actively try to prepare more meals containing meat and poultry, and more than 98% of American households purchase meat.
The meat department is outperforming because it delivers what shoppers want right now: protein, flexibility, value and taste, said Rick Stein, vice president of Fresh Food for FMI. Retailers who balance convenient ground options with premium, indulgent cuts will be best positioned to capture both budget-conscious and experience-driven shoppers, he said. Gen Z shoppers and Millennials were responsible for 67% of unit growth and are more likely than other shoppers to actively try to prepare more meals containing meat or poultry (Gen Z 50%, Millennials 57%) according to Circana. Also, kids have some level of influence on meat and poultry purchase decisions. In 81% of households with children, 72% of shoppers with teenagers living at home said the teens request meat and poultry significantly more than protein bars, shakes and powders.
The younger generations are also at the forefront of using artificial intelligence (AI) and social media platforms when looking for inspirations in meal choices, says the report. Twenty-four percent of Gen Z and Millennial shoppers use AI tools, compared to 10% of Gen X and 4% of Boomers. Overall, 15% of shoppers use AI tools, a 650% increase over just two years ago.
Health and nutrition perspectives also continue to play a significant role in shoppers’ favorable perceptions of meat and poultry, says the report. Seventy-seven percent of shoppers agree that meat and poultry are staples of a healthy diet, an increase of 20% since 2020. GLP-1 users over-index versus non-users for eating somewhat or a lot more meat than last year (161) and for frequently including meat and poultry in snacking occasions (171).
Report Reinforces Meat’s Clear Role
Americans are more focused on making smart food choices than ever before and this latest report reinforces meat’s clear and irreplaceable role at the center of healthy, convenient, affordable meals today and for generations to come, says Julie Anna Potts, CEO and president of the Meat Institute. The Power of Meat study was conducted by 210 Analytics on behalf of FMI-The Food Industry Assn and the Meat Foundation. Sales and purchase dynamics data were provided by Circana for the 52 weeks ending December 28, 2025.
Recalibration was a theme for many of today’s retail meat customers as inflation has many forced to stretch their dollar to put meat and poultry on the family’s plate. This theme emerged during the Power of Meat presentation. Anne-Marie Roerink, principal of 210 Analytics, said more than anything, she is not seeing people walk away from the meat department but is seeing recalibration of spending through money-saving efforts. However, even with shoppers watching where and when to buy, it was another strong year for meat, with 2025 sales increasing 6.8% to a record $111.9 billion (as reported by Meat+Poultry).
Details from the study showed that demand for fresh meat remained high at $79.5 billion, up 9.1% from 2024. Sales by category included beef ($45 billion), chicken ($20.7 billion), and pork ($8.7 billion). In the processed meat category, sales totaled $32.4 billion, up 1.4% from 2024, while volume decreased to 6.4 billion lbs, down 0.5%. According to Circana data, bacon led processed meat sales at $7.1 billion, up 2.8%, while volume was down 0.3%. Lunch meat underperformed with $6.9 billion, which was a 1.6% decrease from the previous year. Dinner sausage stood at $5.9 billion up 3.6% from the previous year and breakfast sausage sales were $2.5 billion, up 4.0% from 2024. Grinds continued to be a huge part of the meat story, with not just ground beef but also with ground chicken, ground pork and ground lamb contributing to the category’s growth, said Roerink.
Millennials And Gen Z Dominate
Another key finding in the study was that millennials and Gen Z accounted for 67% of the unit growth for 2025. Roerink alerted attendees to a looming “changing of the guard,” with millennials poised to take over the majority of share of spending from Boomers within the next two years. Part of that change included evidence that a leading source of meal inspiration for younger consumers are based on social media and online trends. The younger you go, the more the inspiration tends to come from those digital sources, said Roerink.
Roerink also referenced the prevalence of artificial intelligence (AI) in playing a bigger role in consumers’ shopping habits and meal preparation. Roerink said 15% of consumers in the study were using it for meal planning. Keep in mind that as brands and as retail stores, it is AI that is going to decide what is on a person’s dinner plate, she said.
Although much of the inspiration may come from online sources, the study found 70% of households still purchased meat and poultry in-store, compared with 6% who purchased exclusively online. Bridging the online and real world experience is a common discussion point between Roerink and retailers. Many operators are considering discontinuing operation of their butcher counter but the study supports an ongoing demand among consumers to have a place to ask questions in a store. A lot of consumers still want to have some kind of touch point where they can talk to an expert in their store to understand more about a certain cut or a recipe, said Roerink. One part of the meat department that continues to have popularity is case-ready meats. Eighty-seven percent of consumers surveyed found case-ready is as good as or better than meat cut and packaged in the store.
Other highlights from the study included evidence of the importance of convenience among consumers. The study said people are looking for words like “fully cooked” and “ready-to-cook,” on the label. As you think through those time-saving solutions, oftentimes they are somewhat the brother of takeout and delivery, said Roerink. But the more we can have people actually plan those solutions, figuring it’s going to be a busy week, that is another way to get those higher margin items into the cart early, she added.
PACKERS CATCH A BREAK IN PRICES
FED beef processors finally catch a break on both the buy and the sell side of the market. Cash live cattle prices fall several dollars just as boxed beef cutout values increase sharply from the prior week. This reduces their losses but margins still remain negative by at least $100 per head. So weekly slaughter levels, especially of fed steers and heifers, will remain compressed for the foreseeable future. The comprehensive cutout the week before last averaged $373.86 per cwt, up $6.74 per cwt on the week before. The Choice cutout averaged $371.62 per cwt, up $6.00 per cwt. Spot market sales accounted for 28.2% of the total volume of 6133 loads of cuts, grinds and trim. Formula sales accounted for 59.5%, forward sales accounted for 12.3% and export sales accounted for 8.4%. The Choice cutout the first four days of last week increased by $7.05 per cwt to $386.89 per cwt while the Select cutout increased by $6.30 to $380.61 per cwt.
Cash live cattle prices fell sharply the week before last after setting new records the prior week. The 5-area prices averaged $242.71 per cwt live or $382.60 per cwt dressed. These were down $4.20 per cwt and $5.35 per cwt, respectively, from the prior week. The only trade through Wednesday last week was of 248 head in Nebraska at $380 per cwt dressed. Trade slowly developed Thursday up north at $375-376 per cwt dressed, so it appeared that weekly averages would again be lower than the prior week. As expected, no trade was reported in Kansas or Texas. Live cattle meanwhile graded a new record high percentage of Prime and Choice in the latest reported week ended February 21. They graded 87.80% Prime and Choice (14.50% Prime and 73.30% Choice). This broke the previous record of 87.72% set the week ended January 24 this year and revealed how near record high carcass weights have led to record or near record high grading.