Meatpackers like JBS and Tyson Foods are being squeezed by the lowest U.S. cattle supply since the 1950s. It is driving their beef costs to record levels, and leading to hundreds of millions of dollars in losses as a result.https://t.co/2VlfnLCphL ...

President Donald Trump is blaming the meat packers and U.S. cattlemen for rising beef prices, but the tariffs on beef from Brazil, Australia, New Zealand, Uruguay, feed, farm equipment and machinery are all adding to the price surge.The United States is a big buyer of Australian, Brazilian, and New Zealand beef exports.Brazil is the second-largest beef-producing country and the largest beef-exporting country in the world.Brazilian beef exports tracked by Panjiva plummeted in July and August after multiple t ...

Tariffs and Trade Impact - President Trump announced an additional 100% tariff on Chinese goods, raising the total tariff burden on Chinese imports to 130% [2] - Following this announcement, the S&P 500 dropped 2.7%, the Dow Jones Industrial Average fell 878 points (1.9%), and the Nasdaq Composite decreased by 3.6% [3] - Boeing shares fell 4.1% after threats of a parts export ban, highlighting the negative impact of geopolitical tensions on stock performance [4] Pharmaceutical Sector Developments - A major deal was announced to reduce prices of GLP-1 weight-loss drugs, with prices for Ozempic and Wegovy expected to drop from $1,000-$1,350 to $350, and as low as $245 for Medicare and Medicaid beneficiaries [6] - Despite the price cuts, shares of Novo Nordisk and Eli Lilly fell by 3% and 3% respectively, indicating market skepticism about the long-term benefits of price reductions [7] - Earlier, Indian generic drugmakers saw stock surges due to potential exemptions from new import tariffs, contrasting the mixed reactions to price cuts [9] Geopolitical and Economic Agreements - President Trump announced a $100 billion trade deal with Uzbekistan, which includes investments in critical minerals and aviation, although analysts question the long-term viability of such unilateral agreements [11] - The U.S. Supreme Court is reviewing the legality of recent tariff actions, with a ruling expected by early 2026 that could impact market stability [5] Meatpacking Industry Scrutiny - An antitrust investigation was launched into major meatpacking companies, causing shares of JBS NV to drop by 6.2% in after-hours trading [12][13] - The investigation is viewed skeptically by agricultural economists, who suggest it may not lead to lower consumer prices and could disrupt market efficiency [13]

Industry Overview - President Trump has requested the Justice Department to investigate the meatpacking industry for alleged price manipulation and collusion, claiming it is driving up beef prices [1] - The retail price of ground beef has reached record highs, contributing to food inflation concerns [3] Company Impact - Shares of JBS NV, the world's largest meatpacker, fell by as much as 6.2% following Trump's comments, while Tyson Foods Inc. saw a drop of up to 2% before recovering [1] - The price of boxed beef has increased despite a substantial drop in cattle prices, raising suspicions of potential wrongdoing in the industry [4] Economic Context - The U.S. cattle herd has significantly decreased due to high interest rates, expensive feed, and drought conditions, making herd rebuilding a lengthy process [3] - Trump's imposition of a 50% tariff on Brazilian products due to diplomatic issues has also impacted beef exports from companies like JBS and Minerva SA [5]

Market Concerns - The Justice Department was asked to investigate the meatpacking industry for potentially driving up beef prices through "Illicit Collusion, Price Fixing, and Price Manipulation" [1]

Brazil's JBS has been accused of making false climate claims in a U.S. lawsuit filed by advocacy group Mighty Earth, a fresh legal challenge for the world's biggest meatpacker ahead of global climate ... ...

Group 1 - Major U.S. pork producers have agreed to pay nearly $200 million to settle allegations of a price-fixing scheme that inflated prices for consumers and grocery stores [3][4] - The lawsuit, initiated in 2018, claims that eight leading U.S. pork producers colluded to manipulate production levels and enhance profitability from 2009 to 2021, controlling over 80% of the pork market [3] - Tyson Foods' pork brands, which include Hillshire Farms and Wright Brand bacon, accounted for 11% of the company's $53 billion sales in fiscal year 2024 [4] Group 2 - Tyson Foods has agreed to pay $85 million, marking the largest settlement in a price-fixing case that has been ongoing for seven years, surpassing Smithfield Foods' previous $75 million settlement [7] - The lawsuit alleges that Tyson and other major producers used the Agri Stats platform to artificially raise pork prices by intentionally limiting supply [7] - Tyson has faced multiple allegations of price-fixing, including a $221 million settlement related to chicken prices in 2021 [5]

Company Operations - JBS's heir started working at JBS as a teenager [1] - The heir claims to be able to judge a slaughterhouse by its parking lot [1]

Shares of JBS posted a slight gain in their NYSE debut Friday after years of complications for the Brazilian meatpacking giant to trade in U.S. public markets. https://t.co/Bg0chQVTpO ...