Meat Products Manufacturers NAICS 3116

Apr 23, 2026 - Stubbornly High Beef Prices

• High prices for beef, due to persistently tight cattle supplies, are here to stay, The Wall Street Journal reports. With the national herd at a 75-year low and limited rebuilding expected before 2028, processors face ongoing raw material shortages that are reducing throughput, forcing plant closures, and increasing operating costs. Major companies are already cutting capacity and consolidating operations in response. In January, Tyson Foods shut its Lexington, Nebraska beef plant, one of the largest in the US, laying off about 3,200 workers, and cut production in half at its larger Texas facility. Rivals JBS and Cargill have each closed smaller facilities that package beef cuts into products such as ground beef for restaurants and grocery stores, according to WSJ. Higher input costs are compressing margins, especially as beef prices rise faster than other foods, though sustained consumer demand has so far supported pricing power.
• President Trump has ordered a federal investigation into possible price fixing and anti-competitive behavior across US food supply chains, with a specific focus on foreign‑owned companies in sectors that include meat processing, Food Dive reports. For meat producers, this move brings both risk and opportunity. The investigation increases the likelihood of heightened antitrust scrutiny of large packers, especially multinational firms, potentially leading to enforcement actions, new regulations, or even criminal proceedings if collusion is discovered. The investigation could reshape pricing dynamics, contracting practices, and market power in the meat products sector. For independent and domestic producers, the probe could result in a more level playing field, particularly if regulators curb practices that have historically concentrated market power among a few dominant processors. Broadly speaking, the investigation signals a regulatory environment where meat pricing, procurement, and processor relationships face greater scrutiny.

• Aging food processing infrastructure – some dating back more than half a century – poses risks for food manufacturers, especially producers of perishable products that must move swiftly through the system to preserve freshness and quality, Food Processing (FP) reports. Older equipment is more likely to break down, interrupting production and potentially leading to product loss and unexpected replacement costs. Moreover, prolonged downtime or product loss due to breakdowns can ripple through the supply chain. An incident at a poultry plant affected feed suppliers, transportation networks, as well as downstream distributors and retailers, FP gave as an example. The Boar’s Head deli meat plant in Jarrett, Virginia that was the source of a listeria outbreak that killed nine people, sickened dozens, and caused significant reputational damage to the company was 44 years old when it was shut down in 2024.
• Producer prices for animal slaughtering and processing firms rose 7.3% in February compared to a year ago, after rising 6.5% in the previous February-versus-February annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices, which rose steeply in 2025, have eased from their record high in September. At the retail level, meat prices rose 8.6% year over year in February and dipped 0.2% versus January, with the price of beef and veal up 14.4% YoY, per the Labor Department’s February 2026 Consumer Price Index. Industry employment grew 1.6% YoY in January, easing slightly from its record high in December, while the average industry wage was relatively flat over the same period at $22.54 per hour, BLS data show.