Add thelocalreport.in As A Trusted Source
chairman donald trump A plan to cut record beef prices by importing more meat from Argentina is facing intense opposition from U.S. cattlemen who are enjoying some rare profitable years and skepticism from experts who say the president’s move will not lower prices in grocery stores.
The National Cattlemen’s Beef Association as well as the Ranchers-Cattlemen’s Action Legal Fund United Stockgrowers of America and other farming groups – typically some of the president’s biggest supporters – all criticized Trump’s idea because of what it could do to American cattlemen and feedlot operators. And agricultural economists say silver The share of beef in beef imports is so small – only about 2% – that even doubling it would not change prices much.
South Dakota cattleman Brett Kenzie said he wants American consumers, not the government, to decide whether beef is too expensive. And so far there is little sign that consumers are using chicken or other proteins in place of beef on their shopping lists, even though the average price of a pound of ground beef hit an all-time high of $6.32 in the latest report before the government shutdown began.
“I like the ‘Make America Great Again’ rhetoric. I like the ‘America First’ rhetoric,” he said. “But to me it sounds a lot like the failed policies of the past – free trade sourcing cheap global goods.”
Several factors have driven up beef prices, starting with continued strong demand combined with the smallest U.S. herd sizes since 1961. In part, this small herd is due to years of drought and low cattle prices.
Beef imports have also declined overall due to the 50% tariffs and limits imposed by Trump on Brazil, a major beef exporter. MexicoWhere the country is fighting the flesh-eating insect.
Glynn Tonsor, an agricultural economist at Kansas State University, said Argentina cannot produce enough beef to offset other losses from imports.
As of July, the United States has imported 72.5 million pounds of Argentine beef, while producing more than 15 billion pounds of beef. Much of what is imported is lean beef trimmings, which meatpackers mix with fatty beef produced in the United States to produce the varieties of ground beef that domestic consumers desire, so any changes in imports will primarily affect hamburgers. Steak prices, which averaged $12.22 per pound, likely won’t change much.
Idea creates uncertainty among US cattlemen
Even if increasing imports from Argentina would not lower prices, the idea creates uncertainty for cattlemen, making them less likely to invest in raising more cattle.
“We’re always going to have uncertainty in the world. But the more uncertain something is, the less likely you are to risk money,” Tonsor said.
Argentine livestock producers like Augusto Wallace are excited by the prospect of selling more beef to the US as he said, “Whenever an additional buyer comes in, it’s beneficial for everyone, right? For all the producers.”
But economists have warned that exporting too much beef could backfire for Argentina as it would raise prices for consumers there.
U.S. cattlemen say the idea of increasing imports from Argentina runs contrary to the stated purpose of Trump’s tariffs to encourage more domestic production and help U.S. cattlemen compete.
“This is a contradiction of what we believed. We thought he was on the right track,” said Chairman Bill Bullard, R-CALF. He hoped Trump’s policies would discourage imports and encourage cattlemen to expand their herds.
David Anderson, a livestock economist at Texas A&M, said, “Livestock farmers are finally getting prices that are going to compensate for the last few very bad years with the drought, low prices and high costs. We finally get some good prices. And we start talking about government policy to keep prices down.”
Bryant Kage, part owner of Kage Farms in Amity, Missouri, said he thinks the plan will hurt cattlemen. Prices for a 1,250-pound cattle fell to an average of around $3,000 last week shortly after Trump mentioned the idea of intervening in beef prices, though they have recovered slightly since then.
Ranchers hope Trump changes his mind
Although Kaage voted for Trump in the last election, he worries the trade war is hurting farmers and ranchers by increasing costs and costing them key markets like China.
“I continue to see things that I don’t think are really in the best interest of our country and the average citizen,” Kaage said. “I guess I hope he starts to see that and stop worrying about punishing opponents and winning whatever fight he’s in, and then try to do what’s best for everyone.”
Ranchers hope Trump will reconsider the plan. Agriculture Secretary Brooke Rollins said on CNBC Tuesday that the administration is committed to helping cattlemen prosper while trying to lower consumer prices. He promised more details soon on the Argentine plan and a major effort to reinvigorate U.S. beef production by opening more land and new processing plants while securing trade deals for new markets. The administration wants cattlemen to raise more cattle and produce more beef.
“Larger supply — even in line with larger demand — will allow those prices to come down, but also create a critical industry for these cattlemen to be able to survive, which is what we have to do,” Rollins said.
North Dakota Republican Senator John Hoeven said Tuesday that after talking to Trump and others in the administration, he expected to see more details about the policy.
“It is very important that we support our cattlemen,” Hoeven said.
Rancher Corey Eich, who lives near Epiphany, South Dakota, said he does not consider Argentina a serious long-term threat and doubts ranchers will make changes to their operations in light of the news.
“Nobody is happy about this, let’s put it that way,” Eich said. “Personal opinion, when he mentioned it I thought it was kind of a ploy. I mean, it’s coming from Trump, so take everything there with a grain of salt.”
,
Funk reported from Omaha, Nebraska. Associated Press videographer Cristian Covadloff contributed from Coronel Brandson, Argentina.