President Donald Trump is hoping to lower beef prices by allowing more imported beef into the country.
It’s the second time in a year Trump has offered this general plan as a solution to record-setting beef prices. And like last time, ranching groups aren’t pleased.
The statement from Kansas Farm Bureau President Glenn Brunkow doesn’t mince words. He says: “The answer to increasing prices in grocery stores isn’t selling out American farmers and ranchers to buy votes in November.” He also says the plan to increase beef imports at below-market prices “is bad for consumers, destructive for ranchers and anti-American in principle.”
Brunkow’s comments were representative of ranching groups at the state and federal level, including American Farm Bureau Federation President Zippy Duvall, who says, “We appreciate the president’s goal of reducing grocery costs, but short-term measures could have long-term negative effects for consumers and for ranchers who are making decisions on whether to retain or expand their herd.” The National Cattlemen’s Beef Association agrees, saying, “Cattle farmers and ranchers are responding to strong market signals and historically high demand, and we are already working to rebuild after years of ongoing drought, high input costs, and other challenges that have reduced U.S. cattle numbers. Today’s announcement and other market interventions throw cold water on the prospect of herd expansion and sacrifices long-term stability for short-term messaging.” A similar sentiment came from the United States Cattlemen’s Association: “You don’t put America first by putting U.S. cattle producers last. This move will weaken our markets and gamble with food safety in the process.”
Trump’s plan is remove tariff duties on 300,000 metric tons of imported beef at a 25-percent discount going to consumers. The 90-day period for this has also raised eyebrows because it would stretch to just past the November elections.
A significant part of the grocery price issue has to do with the size of the domestic cattle herd — at around 86 million, it’s the smallest in 75 years and well shy of the record high of over 130 million head in the mid-1970s. Domestic demand remains high. Closure of the US-Mexico border due to the flesh-eating parasite New World screwworm hasn’t helped the price situation. Higher input costs like feed and fuel are also involved.
All told, beef averages nearly $7 a pound, according to the Federal Reserve Bank of St Louis. A year ago, the price was around $6.25 a pound. Five years ago, the average price was under $4.40.
