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The president Donald Trump On Friday they signed an order to increase beef imports from Argentina as buyers face higher prices amid supply problems affecting the US cattle industry.
Trump’s order uses a trade deal he reached with Argentina in November that aims to increase beef imports to reduce inflation beef prices that has happened in recent years.
In 2018-19, beef prices were below $4 per pound but began to rise during the crisis and were above $5 per pound from June 2023 while continuing to rise, reaching about $6.69 per pound in December, according to data from the Bureau of Labor Statistics (BLS). Sirloin steaks were around $8.50 a pound in 2019, but have been over $11 a pound since the summer of 2023 and hit $14.02 a pound in December.
Over the past year, beef prices are up 15.5% through December while beef costs are up 17.8%, according to the BLS consumer price index (CPI). A new CPI inflation reading is expected later this week when January data will be released – although beef prices are expected to continue due to domestic supply challenges.
RANCHERS FIGHT OVER PRICES AFTER TRUMP EXTENDED IMPORTS OF ARGENTINE BEEF DUE TO OFFICIAL.
The price of beef and ground beef has risen significantly over the past year. (Justin Sullivan/Getty Images)
Cattle breeders they have reduced their herds due to drought and bushfires affecting key livestock regions in recent years, leaving the country’s cattle population 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 fully grown cattle.
Additional costs because cattle breeders have also increased, the cost of feed, labor, fuel and equipment is increasing.
Additionally, the importation of cattle from Mexico is prohibited due to New World Screwworm, a parasitic infestation that can be devastating to livestock.
MEAT PRICES CONTINUE AS AMERICAN FAMILIES PAY HIGHER PRICES FOR STEAKS AND BURGERS NATIONWIDE.
American consumers have faced significant increases in beef prices over the past few years. (Ronald Schemidt/AFP via Getty Images/Getty Images)
Under the Trump administration’s announcement, the tariff-rate quota for imports of lean beef cuts from Argentina will increase by 80,000 metric tons in calendar year 2026.
I more imports will be fully allocated to Argentina and released in four quarterly installments from Feb. 13.
I The White House he said in the paper that the move is aimed at increasing supply and making ground beef more affordable for American consumers, citing an 8.6% drop in domestic beef supplies from 2020.
BEEF PRICES SHIFT TO RECORD HIGHS AS NATIONAL CATTLE SUPPLY FALLS TO LOWEST LEVEL IN 70 YEARS
US beef supplies are at their lowest level in 70 years. (Agustin Marcarian/Reuters)
The announcement has set back a group of the country’s largest cattle industry, which is questioning whether increased imports will boost yields. price relief management promises.
“While we fundamentally disagree with the premise that increased imports can reduce beef prices, the NCBA is encouraged to see the Trump administration take the necessary steps to address the challenges of accessing the US beef market 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 with foreign animal diseases raises concerns about expanding imports without strong safeguards.
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“Given Argentina’s problems with imported animal diseases, NCBA remains concerned that expanding imports from Argentina without additional testing procedures and the latest research could put American consumers and our cattle herd at unnecessary risk,” Bacus said.
Jasmine Baehr of FOX Business contributed to this report.
