Mass deportation could drive up U.S. meat and milk prices

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President-elect Donald Trump has vowed that he will carry out the “largest deportation operation in American history” beginning on day one.

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Mass deportation could have a significant impact on the meat and dairy industries, both of which rely heavily on unauthorized workers.

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Foreign-born workers comprise 42% of the meatpacking industry and 51% of the dairy industry. Although the exact number of undocumented workers in the dairy industry is unknown, roughly 23% of workers in the meatpacking industry are undocumented.

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Both industries already face shortages due to low wages and dangerous working conditions, including exposure to high noise levels, hazardous chemicals, slippery floors, and poor sanitation.

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While this looming threat of mass deportation poses a serious problem for major players like Tyson Foods, it will likely increase consumer prices. One report suggests the elimination of immigrant labor, which would be larger than the undocumented pool, would increase retail milk prices by an estimated 90.4%.