In recent earnings calls, shareholders in some publicly traded meat companies have asked whether the Trump administration’s deportation plans—among other issues—may challenge their industry. “We’ve been there before. It did not impact our business,” said Tim Klein, CEO of National Beef, which is owned by the Brazilian food company Marfrig,
In response to a question from a shareholder. In response to a similar question in a Tyson Foods earnings call, CEO Donnie King said, “There’s a lot that we don’t know at this point, but I would remind you that we’ve successfully operated this business for over 90 years, no matter the party in control.”
It’s not clear whether the Trump regime would target meatpacking facilities operated by the biggest firms in the industry, given the favorable treatment these companies received at times during the first Trump presidency.
President Trump issued an executive order
During the COVID-19 pandemic, President Trump issued an executive order that allowed plants to keep operating, even as meatpackers were some of the hardest hit by infections. The US House Select Committee on the Coronavirus Crisis later found that Tyson’s legal department drafted a text of the proposed order.
“These large meatpacking companies prevented additional protections from being put in place to protect workers, in part by engaging in a concerted effort with Trump administration political officials to insulate themselves from oversight, to force workers to remain in dangerous conditions, and to shield themselves from liability for any resulting worker illness or death,” the committee concluded in the report released in December 2022.
The supply of labor is tight in meatpacking plants and the farming industry as a whole, says Cesar Escalante, a professor at the University of Georgia’s College of Agriculture & Environmental Sciences. Escalante says the industry needs more workers, and argues that the US should expand the H-2A seasonal agricultural worker visa scheme to include more livestock workers.
Escalante says that larger farms are more likely to be affected by a lack of workers, while larger farms may switch to mechanization.
If meatpacking workers are deported en masse, then that could translate into a rise in prices for consumers. A report from Texas A&M AgriLife Research estimates that eliminating immigrant labor on US dairy farms would nearly double retail milk prices.
It’s not clear what the impact of Trump’s deportation plan would be on meat or food prices more generally, because so much about the plan remains unknown. “We don’t know yet how this is all going to pan out,” Hubbard says.
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Shifa Kouser