Rising beef prices are renewing debate in Washington over the structure of the U.S. meatpacking industry. According to The Wall Street Journal, Senate Democrats are preparing legislation that would force large meatpackers to restructure by limiting companies to processing only one type of meat and placing caps on market share. Supporters say the move would address consolidation in the industry, where four companies—Tyson Foods, Cargill, JBS USA and National Beef—handle most of the nation’s cattle processing. However, analysts say the biggest factor behind higher beef prices right now is the shrinking U.S. cattle herd. After years of drought and financial pressure, the herd has fallen to its lowest level in decades, reducing beef production and pushing prices higher. Even if ranchers begin rebuilding herds, analysts say it could take years before supplies recover and prices stabilize.
