New Competition for U.S. Cattle Ranchers from Increased Beef Imports
- Dave Price
- 37 minutes ago
- 2 min read
American consumers may get a break, while American cattle ranchers just got some added competition. President Donald Trump followed through with his talk about importing more beef from Argentina, where his political ally is president.
Trump signed off on a deal to quadruple the amount of beef from Argentina coming into the United States as he acknowledged record beef prices.
Part of his announcement proclamation read:
“As President of the United States, I have a responsibility to ensure that hard-working Americans can afford to feed themselves and their families. After considering the information provided to me by the Secretary of Agriculture, among other relevant information, I am taking action to temporarily increase the quantity of in-quota imports of lean beef trimmings under the United States beef TRQ (tariff-rate quota) to increase the supply of ground beef for United States consumers.”
Cattle herds have fallen to a 70-year low due to a variety of factors of the years, including severe drought, which has plagued parts of Kansas, Missouri, Nebraska, Oklahoma, Texas, and South Dakota in recent years.
That diminished cattle supply has put upward price pressure on beef, which had already started climbing before the COVID-19 pandemic disrupted supply chains and consumer behavior.
“In 2018-19, ground beef prices were under $4 per pound but began rising during the pandemic and have been above $5 a pound since June 2023 while continuing to increase, reaching about $6.69 a pound in December, according to data from the Bureau of Labor Statistics (BLS). Sirloin steaks were around $8.50 a pound in 2019 but have been over $11 a pound since the summer of 2023 and hit $14.02 a pound in December.”
U.S. Cattle Ranchers React to President Trump’s Increased Imports in Beef from Argentina
Cattle ranchers know that an increase in lower quality meat from Argentina could deter some Americans from buying domestic beef. Eric Jennings, past president of the South Dakota Cattlemen’s Association, told KOTA Territory news in Rapid City that the president’s moves will likely do little to lower prices for consumers.
“80,000 metric tons, while it sounds like a lot, it’s a very small percentage of our total meat consumption in the United States,” Jennings said.
Jennings said if the president’s true objective is to lower prices, “...he’s gonna miss the mark if that’s the case.”
Jennings also said that Argentina lacks the same safety standards as U.S. cattle ranchers, and he said that he would trust imported meat more if it came from New Zealand, Australia, or Canada.
Trump is currently quarreling with Canada – one of the targeted countries in his trade war -- and threatening to not allow the use of a bridge that he previously approved. The new $4.7 billion bridge would connect Windsor, Ontario, with Detroit, Michigan, and provide six-lane traffic for commerce and travelers.
RELATED: Ed Blundy, equity partner and Brown & Co. in the United Kingdom, told American Farmland Owner late last year that agricultural leaders in his country pay attention to President Donald Trump’s changing tariff policies.
