The beef industry is facing tough times and consumers are seeing it in the price
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Why is the U.S. beef industry facing price pressure and supply challenges?
It's time now for our daily tech and business report. It's been tough for the beef industry lately amid short-term supply issues in the U.S. beef market and rising consumer worries over the cost of groceries, utilities, and other necessities. But some federal action could be on the horizon. And to take a closer look, we turn now to the KCBS Ring Central Newsline to speak with Bloomberg's Alina Peng. Thank you so much for For being with us this afternoon. Of course, thanks for having me. Absolutely.
What executive actions is the Trump administration considering to lower beef prices?
Eileena, can you explain what the Trump administration is doing to help bring down the beef prices?
Yes, of course. So we're told by a White House official that later today there will be a couple of executive orders aimed at lowering beef prices. One of the moves that they may be looking at is essentially reducing the um the tariffs that are placed on beef imports coming into the country. And then they're also looking at potentially uh changing some regulations that would make it easier for US ranchers to rebuild the size of the US cattle herd, which is fundamentally what has been keeping prices so high right now.
Okay. Um let's let's uh split those two out. Um first let's uh start with the tariffs going away.
How would reducing tariffs on beef imports affect U.S. prices and domestic producers?
Um which countries are the biggest uh beef importers?
Yeah, so Brazil and Australia are the biggest countries that export supplies. Um and so if these tariffs uh were to be reduced, we would likely see more shipments from those countries. The Trump administration has also moved to increase imports from Argentina, which is also a very big beef producer.
Hey, is there a potential that the market could be flooded? Would that impact American beef producers? It's
a little bit of a disparate imp a disparate market in some senses because a lot of the imports that we get uh from other countries are actually in the form of lean trimmings and so they end up getting blended with US product to produce, like, say, hamburger meat or ground beef in general. So definitely it would lower prices in the US, but they're also not like a direct one to one swap, for example.
What loan programs and financial support are being proposed for American ranchers?
Like the imports we're getting wouldn't be swapping out your filet mignon, for example, which would likely be a US produced product.
Oh, that's interesting. And um tell us about the loans and other support uh for the American uh beef producers.
Yeah, well, it seems that they may be looking at directing the small business administration to increase loans for US ranchers. One of the reasons that the US cattle herd has been so small is because ranchers haven't felt that they have uh the stability both in terms of finances as well as just like the drought conditions that their land are facing uh in order to be able to expand the herd. If you're not sure that your pocketbook will hold up in coming years and if you're not sure that you're gonna have enough grass for your cattle to graze on, then you really won't be looking at expanding the US herd, which is what has kept us in that sort of seventy five year level for so long.
Be beyond the loans, um, what else would encourage farmers uh to to increase their herds?
I think it's really both those two things.
Will consumers be able to tell the difference between domestic and imported beef?
I think people are looking for a more stable financial market. Interest rates have been a big issue for ranchers and farmers more generally as well. And then the other thing is just looking at access to land for their animals to graze on and the amount of rainfall that that land gets.
I was intrigued when you you talked about uh some of the beef being mixed with, you know, American and then beef from other countries of to make hamburgers. I wonder as a as a consumer, um, will we be able to easily distinguish between domestic beef and the new influx?
Yeah, there's been a big push on the US rancher end to have better product labeling because I think right now, um, the labeling is a little bit murky in terms of like what is made in the USA and what isn't.
And then when do you think we could see these beef prices ease?
It's gonna take a while. I think imports are the closest uh near term supply help that would be on the way, but when it comes to a fundamental herd rebuild just because of, you know, how long it takes for animals to grow fundamentally, I think that's something that we would be looking at like probably twenty twenty seven.
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Chapters
6 chapters
1
Why is the U.S. beef industry facing price pressure and supply challenges?
0:00–0:29
2
What executive actions is the Trump administration considering to lower beef prices?
0:29–1:10
3
How would reducing tariffs on beef imports affect U.S. prices and domestic producers?
1:10–2:05
4
What loan programs and financial support are being proposed for American ranchers?
2:05–3:04
5
Will consumers be able to tell the difference between domestic and imported beef?
3:04–4:13
6
When can we realistically expect beef prices to ease and the herd to rebuild?
4:13–4:41
Speakers
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