Four major meatpackers are asking a federal appeals court to dismiss claims that they harmed U.S. ranchers by labeling beef from foreign-raised cattle as a “Product of USA.”
The lawsuit, filed by South Dakota ranchers Tim Taylor and Bryce Baker, names JBS Foods USA, Tyson Foods, Cargill Meat Solutions and National Beef Packing Co. as defendants. The ranchers allege the companies imported cattle raised abroad, slaughtered or processed them in the United States and sold the resulting beef with domestic-origin labels.
The plaintiffs contend the practice misled consumers and reduced the prices paid for cattle born and raised in the United States. They are seeking damages and injunctive relief on behalf of a proposed class of ranchers.
The companies have denied wrongdoing and argue that the labels complied with guidance issued by the U.S. Department of Agriculture’s Food Safety and Inspection Service. Under the agency’s former policy, meat could carry a “Product of USA” label if it was processed in the United States, regardless of where the animal was born or raised.
In January 2025, U.S. District Judge Eric Schulte allowed the ranchers’ restraint-of-trade and unjust-enrichment claims to proceed. Schulte dismissed a separate claim brought under the federal Racketeer Influenced and Corrupt Organizations Act.
The judge concluded that prior FSIS approval did not necessarily establish that a label was not false or misleading. He also found that the Federal Meat Inspection Act gives states concurrent authority to enforce federal prohibitions against misbranded meat.
The meatpackers appealed that decision to the U.S. Court of Appeals for the Eighth Circuit. They argue that permitting states to challenge federally approved labels could create conflicting requirements across the country and expose companies to damages for following government guidance.
Attorneys for the ranchers counter that USDA guidance does not have the force of federal law and cannot shield companies from claims that their labels misled consumers. Eleven states, led by South Dakota, filed a friend-of-the-court brief supporting the ranchers.
The appeal concerns labeling practices permitted under USDA’s previous policy. A new federal labeling standard took effect Jan. 1.
Under the rule, voluntary “Product of USA” and “Made in the USA” claims may be used on meat, poultry and egg products only when the animals were born, raised, slaughtered and processed in the United States. Companies using the claims must maintain documentation supporting them.
The new standard does not determine whether the meatpackers are liable for labels used before the compliance date. The Eighth Circuit’s decision will determine whether the ranchers’ remaining claims may proceed in federal district court.