Argentina beef imports will not determine corporate concentration, ranchers say

While President Donald TrumpWhile the proposal to import more beef from Argentina is billed by the administration as a way to lower prices for American consumers, critics say it misses the real problem driving costs at the grocery store: corporate concentration in the U.S. meatpacking industry.

Four corporations — Tyson, JBS, Cargill and National Beef — anchor the U.S. beef supply chain, which runs from pasture to plate. As a result, the gap between what producers are paid for cattle and what consumers spend on beef has remained wide, economists say, a reflection of how market power is distributed along the supply chain.

Fox News Digital reached out to all four companies for comment but did not receive a response, according to the release.

Trump administration eyes Argentine beef imports as domestic prices soar

Some critics say the real problem isn’t supply, it’s the corporate giants that control America’s meat industry. (Melina Mara/The Washington Post/Getty Images)

Frustration extends beyond farm country – Rep. Thomas Massey, R-Ky., says the dominance of multinational meatpackers is hurting both producers and consumers.

“Four corporations control 85% of the meat sold in the United States. One of these corporations is Chinese-owned and one is Brazilian-owned. American farmers are being squeezed and American consumers are being ripped off,” Massey told Fox News Digital.

Massie, who raises cattle on it Kentucky ranch, warned that increasing beef imports from Argentina would exacerbate those structural problems.

“Flooding the market with Argentine beef is not the answer to these problems. America First is the solution to rising beef prices. The PRIME ActThat will enable American farmers to sell directly to consumers without the intervention of global corporate middlemen,” Massey said.

Under current federal law, beef processed at small, state-inspected facilities cannot be sold across state lines, even if it meets the same health standards as federally inspected meat. Macy’s Prime Law would remove that barrier, a change proponents say would allow local ranchers to reach more consumers and compete with larger packers.

GOP lawmakers warn Trump’s Argentina beef proposal could hurt US ranchers

Agriculture Secretary Brooke Rollins recently unveiled a plan aimed at strengthening the US cattle industry. (Ty Wright/Bloomberg/Getty Images)

Economists agree that the beef market is highly integrated, but say the forces shaping prices go beyond any single trade agreement.

Glynn Tonser, professor of agricultural economics at Kansas State University, told Fox News Digital that strong consumer demand is driving growth. Beef prices higherregardless of fluctuations in supply.

“There’s nothing forcing me or you or anyone else to pay more for beef when we go to the grocery store. People are choosing that,” he said. “Consumer demand for beef is strong and regardless of supply-side conditions, prices will be affected.”

He also noted that the large-scale structure of the US meatpacking industry, often criticized by ranchers and lawmakers, benefits consumers financially.

“I would argue that consumers benefit from those economies of scale,” Tonser said. “The ability to work at a cheaper cost per head and ultimately, cost per pound produced gives us the ability to offer beef and every other commodity we’re talking about at a cheaper price. Anything we do that loses those economies of scale hurts the consumer in the form of higher prices.”

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The White House has previously said beef imports would help address rising food costs in the US (Jim Watson/AFP/Getty Images)

Darrell Peel, a professor of agricultural economics at Oklahoma State University, said that even if U.S. imports from Argentina increased, the impact on overall prices would be negligible.

“Most of what we import is lean, processed beef trimmings used for ground beef,” said Peele, who specializes in livestock marketing. “We’re not talking about the type of beef affecting steak prices. Even if we doubled imports, it would be such a small share of the total supply that we wouldn’t find any real effect.”

Peel added that there is no quick way to ease the pressure on cattle prices, as it takes about two years to get animals to market and several years to rebuild herds.

“The fact of the matter is that there is nothing anyone can do to change this very quickly,” he said. “We’re in a tight supply situation that took years to develop and will take years to get out of.”

Beef prices hit record highs as nationwide cattle inventory falls to 70-year low

Economists say there is no quick way to ease the pressure on cattle prices or beef. (Ricky Cariotti/The Washington Post/Getty Images)

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Meanwhile, the White House has defended the plan, saying it aims to balance consumer relief with long-term support for U.S. livestock producers.

“The president loves our ranchers and he loves the American consumer, and he wants to do right by both,” White House press secretary Carolyn Levitt said Wednesday.

Levitt said Trump’s immediate goal is to cut back beef prices By augmenting supply through additional imports, a separate, long-term plan would focus on strengthening the domestic livestock industry.

She pointed to the three-pronged plan announced by the Agriculture Secretary Brooke RollinsThat includes expanding grazing access, easing regulations for new ranchers, cutting inspection costs and improving “Made in the USA” labeling so consumers know when they’re buying American-made beef.