The U.S. beef industry faces a critical juncture as independent cattle producers continue to decline, with recent figures indicating beef cow numbers have reached their lowest point since 1965. This significant contraction in the producer base is occurring amidst long-standing allegations of market manipulation and increasing concentration among the nation's largest meatpackers. Rancher and advocate Mike Callicrate recently voiced strong concerns on social media, stating, > "Tyson rigged the market. Walmart built its own supply chain. Now JBS is circling what’s left. And now half our cattle producers are gone. This was never about feeding people. It was about controlling America.
Callicrate, a vocal proponent for independent ranchers for over three decades, has consistently highlighted what he describes as a "rigged game of Big Beef." His assertions align with numerous antitrust lawsuits filed against the "Big Four" meatpacking companies: Tyson Foods, JBS USA, Cargill, and National Beef Packing Co. These firms collectively control an estimated 80-85% of the U.S. beef processing market. The lawsuits, brought by ranchers, consumers, and even large buyers like McDonald's, allege conspiracies to suppress cattle prices paid to producers while inflating beef prices for consumers.
The dominant market position of these meatpackers has been a subject of federal scrutiny, with the Department of Justice investigating alleged anticompetitive practices. Tactics cited in legal complaints include importing foreign cattle, strategically closing slaughter plants, and reducing processing volumes to manipulate supply and demand. While some companies, including JBS and Tyson, have reached settlements in various price-fixing and wage-fixing cases, other significant antitrust litigations remain ongoing.
Adding another layer to the evolving landscape, retail giant Walmart has intensified its efforts to vertically integrate its beef supply chain. The company recently opened its first owned and operated beef processing facility in Olathe, Kansas, on June 27, 2025. This strategic move aims to cut out intermediaries, enhance quality control, and ensure transparency, signaling a shift towards more direct sourcing that could further reshape the traditional beef market structure.
The dwindling number of U.S. cattle producers, with beef cow inventory at 27.9 million head as of January 2025, is attributed to a confluence of factors including prolonged droughts, escalating feed costs, and the economic pressures exerted by concentrated market power. This situation has led many independent ranchers to reduce their herds or exit the industry entirely. Critics argue that the current market dynamics disproportionately benefit large packers, creating an imbalance where high retail beef prices do not translate into fair returns for those raising the cattle.