By Karl Plume and Tom Polansek
BOONE, Iowa, Sept 1 (Reuters) – U.S. meatpacker Tyson Foods has disputed a claim by U.S. Department of Agriculture Secretary Brooke Rollins that it would sell its recently shuttered beef plants only to American-owned companies or producers, including cooperatives.
Rollins, who was speaking on Tuesday at the annual Farm Progress Show in Boone, Iowa, was addressing high beef prices, industry consolidation and foreign ownership of U.S. beef plants.
After the remarks, Tyson said it would sell its plants to any buyer, foreign or domestic.
“Our company’s stance on selling the closed plants has not changed,” a company spokesperson said.
The dispute underscores tensions between the administration of U.S. President Donald Trump and the meatpacking industry over who controls U.S. beef processing at a time when foreign-owned companies handle a large share of slaughter capacity and record beef prices have become an election-year flashpoint.
FOREIGN OWNERSHIP CONCERNS
The Trump administration has raised concerns about foreign ownership of U.S. beef facilities, while also taking steps to encourage imports of ground beef.
Tyson, Cargill, JBS USA and National Beef Packing Company slaughter about 85% of U.S. grain-fattened cattle that become steaks, beef roasts and other cuts of meat in supermarkets. JBS USA is owned by Brazilian meatpacker JBS , while Brazil’s Marfrig Global Foods SA holds a controlling stake in National Beef Packing Company.
Rollins said she secured a verbal commitment from Tyson CEO Donnie King following the company’s announcement last month that it would be shutting or selling three U.S. beef plants and packaging operations sites amid deepening losses in its beef business.
“I’ve talked to the Tyson team about that a couple of times over the last year,” Rollins told reporters at the large outdoor farm show. “Mr. King told me that they would make sure that if it moves or when it moves, it would be to an American-owned company or producers.”
Rollins did not immediately reply to a request to comment further.
BEEF PRICES SURGE AHEAD OF ELECTIONS
Beef prices have soared to records this year due to historically tight cattle supplies and have become a politically sensitive issue ahead of the November midterm elections, with polls showing a growing share of voters increasingly frustrated with the rising cost of food staples.
Last year, Trump accused meatpacking companies of driving up prices through manipulation and collusion, and ordered the Justice Department to investigate. Meatpackers have reported losing money in their beef businesses because high cattle costs have overshadowed climbing beef prices.
Trump angered beef industry groups and many ranchers with an announcement last month to allow 300,000 metric tons of foreign beef to enter the U.S. at reduced tariff rates for 90 days ahead of the election.
The USDA this week rolled out a plan to support the industry, including loans for small meat processors and the use of conserved land for grazing.
(Reporting by Karl Plume in Boone, Iowa, and Tom Polansek in Chicago; Editing by Matthew Lewis)
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