US cattle boss criticizes Trump’s plan to bail out Argentine beef, saying it ‘does nothing to lower grocery store prices’

Trump suggested on Sunday that the U.S Beef can be purchased from Argentina as a way to lower prices for American consumers. Beef costs have ballooned As much as 12% Last year. The proposal was met with outrage from US ranchers, who said the move would disrupt the free market and introduce unnecessary risk factors to the domestic beef supply.

“This plan only creates chaos at a critical time of year for American cattle producers, while doing nothing to lower grocery store prices,” Colin Woodall, CEO of the National Cattlemen’s Cattle Association, said in a statement. statement on monday.

Woodall added that Argentina has a “wildly unbalanced trade relationship” with the United States, having sold more than $800 million of the product than the United States, compared to the United States selling just over $7 million of U.S. beef to Argentina. He also expressed concern about Argentina’s history with… Foot-and-mouth diseaseIt is a highly contagious virus that affects animals with cloven hooves, and it has been warned that it could “decimate” livestock production in the United States.

Trump’s proposal is part of recent efforts to strengthen ties with Argentina, its longtime political ally and Argentine President Javier Miley, a chainsaw-wielding leader. Known for Both tame the country’s hyperinflation, but also navigate several corruption scandals. Central Bank of Argentina certain On Monday, a currency stabilization agreement was signed with the United States, which will see $20 billion transferred from the US Treasury to the Argentine Central Bank.

“Argentina is fighting for its life,” Trump said on Sunday. “Nothing good for Argentina”

The US Treasury Department did not respond to this luckRequest for comment.

The injustices of rural America

Potential intervention will come in Argentina, just as it did with the livestock industry in the United States Beginning to recover From a dismal 2024, it saw its smallest herd since 1951, as a result of severe droughts that withered pastures and raised livestock feed costs. U.S. beef imports have also been reduced by a ban on Mexican beef in an attempt to prevent the spread of screwworm, a flesh-eating parasite found in cattle, across the border.

However, this industry is vital to local agriculture. In 2024, livestock production It constitutes about 22% Of the $515 billion in cash receipts for agricultural commodities in the United States, according to the USDA.

Ranchers join the chorus of soybean farmers who have done just that He was frank On the impact of Trump’s relations with Argentina on the soybean industry. Amid proposals to provide financial aid to Argentina last month, the South American country also dropped several export taxes in a bid to stabilize its economy – including a soybean tax. As a result, China, which previously bought about a quarter of US soybean exports, has ordered several shipments of the crop. China has Soybeans are not required in the United States Since May.

“The frustration is enormous,” Caleb Ragland, president of the American Soybean Association (ASA), said in a statement. statement last month. “The agricultural economy is suffering as our competitors displace the United States in the world’s largest soybean import market.”

The unique needs of the livestock industry

While soybean farmers call for a trade deal with China to regain their power in the global market, cattle ranchers have a simpler request.

“They’re not asking for anything,” said Derrell Bell, an agribusiness professor who specializes in livestock at Oklahoma State University. luck. “Basically, they just want everyone to get out of the market and let the market do what it does.”

Bell said ranchers are well-equipped to handle dwindling herd sizes, which are part of a decade-long cycle of natural swelling and shrinking livestock populations as a result of the biological life cycle of livestock. While severe droughts have made this liquidation period more severe than previous cycles, the industry is accustomed to having free trade to move during supply contractions.

The industry already depends on Beef import flowThe USDA expects import volume to peak in 2025 at 4.4 billion pounds, while production will reach an expected low in 2027 at 24.8 pounds. According to Bell, disruptions in this well-documented and long-controlled cycle amount to market manipulation.

“Anything that would jeopardize the opportunity here to renew financially, recover from recent adversity, as well as plan ahead for the next transformation of this thing, would naturally cause a negative reaction on the part of producers,” he said.

Moreover, Bell said, Argentina only accounts for about 2% of U.S. beef imports, meaning that relying on the country for imports would do very little to increase U.S. beef supplies, especially compared to large importers like Australia and Brazil.

While higher beef prices have helped ranchers stay afloat during this winding down period, U.S. beef supplies have also been impacted by Trump’s tariff policy, particularly his decision. 40% tax on Brazilian exports This further tightened US import supplies, leading to higher beef prices. behind While American soybean farmers have been ignored, China has also stopped buying beef from American ranchers because of high tariffs, Bell said. China is the third largest export market in this industry.

“We’re effectively out of that market now, pretty much,” Bell said. “So that’s an impact. It’s been kind of huge.”