U.S. beef prices have been stubbornly high for a variety of reasons, including drought and reduced imports from Mexico due to a flesh-eating pest in cattle herds there.
U.S. beef prices have been stubbornly high for a variety of reasons, including drought and reduced imports from Mexico due to a flesh-eating pest in cattle herds there.
This whole idea avoids two big issues at stake.
With the US dollar weakening, this creates economic risks for purchase orders of Argentinian beef. There will need specific policy assurances in place and market controls by both Governments to ensure that a continuing weakening US dollar doesn’t commit retailers to beef that does nothing to move price to consumer.
There would need to be ever increasing tariff controls in place and if Trump does not make the midterms, there is a good chance that Congress could curtail his usurping Article I powers from Congress. This could come at a time that would be critical for quick adjustments and if retailers have put in orders that jump suddenly or orders that just get cancelled.
Record high retail beef prices in the US in 2025 are driven by low domestic cattle supplies and strong demand. This is due in part to several post pandemic droughts the world over. Additionally, changing trade policy has made steady market planning by US cattle producers that much more difficult. The volatility paired with natural factors has cause beef production within the United States to plunge. Independent farmers of beef are in need and losing the battle to commercial beef production that continue to use their market position to maintain higher beef prices and lower production.
There needs to be movement on multiple fronts within the United States to ensure a healthy beef production that can match the demand being seen. Simply importing Argentinian beef, slaps a band-aid on a wound that’s in critical need of prompt attention. And failure to address the complexities of what’s driving beef prices higher and just simply applying a stop-gap issue that does nothing long term, will ensure that beef prices don’t actually move anywhere in the foreseeable future.
If this whole thing was part of some larger domestic improvement plan, that would be a different story. But this President is widely known for half assing, or quarter assing, or concepts of a planning his way through his term. There’s no way that there’s some larger strategy involved here. And so what the President is doing is attempting to curry favor with Argentina and Milei by putting long term US beef viability at stake (no pun intended).
I expect nothing less from the guy. This is just a foolish plan that is going to blow up in someone’s face a few years down the road. This idiot in the White House is just hoping that he isn’t that guy left holding the bag when it does.
If American ranchers are struggling to produce competitive beef, why is that a problem? It’s not a critical good; just import it and let the industry shrink.
If as you say it’s domestic producers maintaining the price high by restricting supply, imports will encourage them to increase supply.
I am not the previous commenter, but it sounds like they are implying there is a monopoly on domestic beef. And if that’s true, clearly it should be broken up. Of course you could import goods to break a monopoly, but that doesn’t help the life of the people who were being screwed domestically, who should have a viable business model, but don’t because of unfair selling practices. Which is to say that both solutions might be reasonable.
I’m only talking about monopolies in general. So perhaps someone more knowledgeable might have something else to add. I don’t know anything specifically about the beef industry.