The Livestock Consolidation Research Act has been introduced into Congress by Senators Chuck Grassley (R-IA) and Tina Smith (D-MN). The intent of the legislation would be to direct the USDA Economic Research Service to analyze whether concentration in beef packing impacts farmers, ranchers and ultimately, retail prices to consumers.
Senator Grassley stated, “Consolidation in the meat and poultry industry impacts Iowa producers and consumers alike and right now they’re feeling the squeeze.” He pointed to the fact that four major packers are responsible for 85 percent of beef capacity.
Currently, there is inordinate unjustified and unsubstantiated finger-pointing, accusing packers of market manipulation and applying pressure on feeders. The title of the proposed Act essentially acknowledges that there is a lack of information concerning the economic impact of consolidation that at face value improves efficiency and should lower costs. The high retail price of beef in 2026 is a function of disequilibrium between supply and demand. The national herd is at a record low due to disruption of the production cycle extending from cow-calf operations through grow-out and feeding. Reasons for the shortage of available slaughter stock include a prolonged drought, high production costs, closure of the border with Mexico following outbreaks of New World screwworm, an erratic tariff policy and an overall failure to project and maintain production levels in relation to future demand.
The legislation has been endorsed by the National Farmers Union and Senators Grassley and Smith intend to include their directive in the long-delayed Farm Bill.
It would be best for the USDA-ERS to concentrate on the beef industry in their analysis, since this is where the U.S, problem exists. Probing into the chicken industry would appear to be an unnecessary exercise given the integrated structure of broiler production and the diversity of scope and the number of companies producing chickens for domestic consumption and export.