More beef purchases in Argentina will not do much to reduce costs for consumers, according to experts
President Trump’s initiative to improve the US beef imports from Argentina to help reduce costs for consumers may have less impact than the White House expects, experts say.
Council order, Mr. Trump signed a new trade deal between the two countries on Friday, allowing Argentina to export an additional 80,000 tons of beef to the U.S. tariff this year, according to the Trump administration. The directive applies to the sale of lean beef, which is used to produce ground beef.
“As President of the United States, I have a responsibility to ensure that hardworking Americans are able to support themselves and their families,” said Mr.
But David Ortega, a food economist and professor at Michigan State University, told CBS News that the 80,000 tons of beef represent only 0.6% of American beef — too little to move the needle on prices, he said.
“We’re talking about less than 1%,” Ortega said. “And so I wouldn’t expect this to have a big impact on these prices. Now, it doesn’t hurt, but we’re not talking about any large quantities that we’re importing that could depress prices immediately.”
The United States produced approximately 27 billion pounds of beef by 2024, according to data from the US Department of Agriculture shared with Statista.
What has driven up beef prices
Average beef prices around the US reached $6.69 a pound in December, up 19% from a year ago, according to data from the Federal Reserve Bank of St. Louis. Five years ago, consumers could buy a pound of beef for $3.95.
The biggest factor behind the increase in beef prices: Bad weather that has reduced the nation’s cattle supply. Droughtincluding recent dry weather in 2022 that affected beef-producing regions, making it difficult for farmers to grow crops needed for food and forcing many cattlemen to sell their beef cattle. The wildfires also destroyed cattle pastures, according to the White House.
In contrast, the cost of chicken and eggs, which increased in 2022 during the year bird flu outbreak which required the destruction of millions of birds, recently sunk, St. Louis Fed show.
“While the prices of other proteins such as eggs, pork and chicken have decreased in recent months, the prices of beef remain high,” said a spokesperson for the Ministry of Agriculture in an email. “This is due to a headwind of continued increase in consumer demand for beef, coupled with a long-term decline in live cattle.”
The nation’s beef cattle supply stood at 27.6 million on Jan. 1, down 1% from a year ago, according to USDA data. Overall, the total number of cattle in the US is at a 75-year low.
In last week’s paper, the White House acknowledged the supply challenges facing the US
“President Trump is responding to market challenges and making sure American families get more beef at affordable prices by taking action in a number of ways.”
So what can reduce costs?
Derrell Peel, a professor in the department of agricultural economics at Oklahoma State University, also expressed doubts that the executive order will help ease costs for domestic consumers, saying “there is nothing the administration can do in the short term to lower the price of American beef.”
That’s because the key to bringing prices down will be rebuilding the herd, a process that could take several years, Peel explained. Part of that effort will require saving female cows, known as heifers, to reproduce, instead of killing them to meet consumer demand for beef, Peel noted.
“We have record cattle prices, we will continue until we grow,” he said.
