On Making Money, R-CALF USA CEO Bill Bullard discusses President Donald Trump’s new announcement on agricultural aid, what it means for the industry and the widening gap between beef and cattle prices.
President Donald Trump signed an executive order Friday to expand beef imports from Argentina as consumers face higher prices due to supply constraints impacting the U.S. cattle industry.
Trump’s order implements a trade framework he reached with Argentina in November that aims to increase beef imports to stem the rise in beef prices that has happened in recent years.
In 2018-2019, ground beef prices were less than $4 per pound, but they began rising during the pandemic and have been above $5 per pound since June 2023, while continuing to rise to about $6.69 per pound in December, according to Bureau of Labor Statistics (BLS) data. Prime rib cost about $8.50 per pound in 2019, but has been over $11 per pound since the summer of 2023 and was $14.02 per pound in December.
Over the past year, ground beef prices rose 15.5% through December, while the cost of a steak rose 17.8%, according to the BLS’ Consumer Price Index (CPI). A new look at CPI inflation will take place at the end of this week, when January data is expected to be released – although high beef prices are expected to persist due to domestic supply issues.
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The price of steaks and ground beef has risen sharply in the past year. (Justin Sullivan/Getty Images)
Cattle ranchers have reduced their herds due to drought and bushfires that have hit key ranching areas in recent years, leaving the national livestock inventory at its lowest level in 70 years. Although some ranchers have begun to slowly rebuild their herds, it takes at least two years to raise mature cattle.
Overhead costs Ranching costs have also increased, with costs for feed, labor, fuel and equipment increasing.
In addition, livestock imports from Mexico are limited due to the New World Screwworm, a parasitic pest that can affect livestock.
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American consumers have experienced a significant increase in beef prices in recent years. (Ronald Schemidt/AFP via Getty Images/Getty Images)
Among the Trump administration’s announcement is the tariff quotas for imports The amount of lean beef waste from Argentina will increase by 80,000 tons by the 2026 calendar year.
The additional imports will be fully allocated to Argentina and released in four quarterly installments starting February 13.
The White House said in a fact sheet that the move is intended to increase supply and make ground beef more affordable for U.S. consumers, citing an 8.6% decline in domestic beef cattle inventory since 2020.
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The U.S. beef cattle inventory is at a 70-year low. (Agustin Marcarian/Reuters)
The announcement sparked resistance from the country’s largest livestock industry group, which questioned whether increased imports would deliver price reduction the government is promising.
“While we fundamentally disagree with the premise that increased imports can lower beef prices, NCBA is encouraged to see the Trump Administration take the necessary steps to address the long-standing market access challenges for U.S. beef in Argentina,” said Kent Bacus, executive director of international trade and market access at the National Cattlemen’s Beef Association (NCBA).
Bacus warned that Argentina’s history of foreign animal diseases raises concerns about expanding imports without stronger safeguards.
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“Given Argentina’s problems with foreign animal diseases, the NCBA remains concerned that expanding imports from Argentina without stricter inspection protocols and up-to-date audits could unnecessarily endanger U.S. consumers and our livestock,” Bacus said.
