A federal appeals court will soon determine the outcome of an antitrust lawsuit filed by South Dakota ranchers Tim Taylor and Bryce Baker against major meat packers.
The lawsuit claims companies like JBS Foods USA, Tyson Foods Inc., Cargill Meat Solutions Corp., and National Beef Packing Company LLC have been labeling beef products as “Products of the USA” despite most of the meat not being produced in the U.S.
Filed as a class action in 2023, the ranchers argue that these deceptive labeling practices have cost domestic ranchers billions annually since 2015.
Initially filed in state court, the case was moved to the U.S. District Court for the District of South Dakota. In January 2025, the court rejected the meat packers’ motion to dismiss, prompting an appeal to the U.S. Court of Appeals for the Eighth Circuit.
This week, attorneys general from 11 states, including South Dakota, Nebraska, and Texas, filed an amicus brief supporting the ranchers.
They argue that the deceptive labeling not only misleads consumers but also gives foreign beef producers an unfair advantage over U.S. ranchers.
A USDA study revealed that 84% of consumers mistakenly believe that “Product of the USA” beef must be born, raised, and slaughtered in the U.S.
The meat companies’ use of the “Product of the USA” label, approved by the Food Safety Inspection Service (FSIS), has been based on outdated USDA policies.
The states contend that this labeling misleads consumers, creating an unfair market advantage. The USDA has since updated the “Product of the USA” definition, now requiring all beef under this label to be born, raised, slaughtered, and processed in the U.S., effective January 2026.
The lawsuit alleges violations of truth-in-labeling and state antitrust laws. Taylor, a cow-calf producer, and Baker, a rancher in South Dakota, claim the deceptive labels have resulted in them receiving 40% less per year for their cattle since 2015.
In a brief filed on August 6, 2025, the ranchers argued that the meat packers’ actions have inflated foreign beef prices while depressing domestic beef prices.
They emphasized that consumers are misled by identical labels on beef products that are not equally sourced. The FSIS, they say, has recognized the error and moved to correct it.
A similar lawsuit filed in New Mexico against Tyson Foods was dismissed in 2022, with the U.S. Court of Appeals for the 10th Circuit upholding the decision.
However, this case remains ongoing in the Eighth Circuit, where its outcome could set an important precedent for beef labeling laws across the U.S.
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