Trump’s move on beef imports will not solve the real problem facing U.S. ranchers
“Meatpackers have created a system where they win no matter what, at everyone’s expense,” said Will Harris, a fourth-generation rancher and owner of White Oak Pastures in Bluffton, Georgia.
Harris, who plans to pass the operation on to his children, said his farm handles every step of production, from raising cattle to processing and selling beef, giving him a clear view of how prices are set.
Sixth-generation rancher Mark Kirkpatrick feeds his annual calves at his ranch, called Stoker-Kirkpatrick Ranch, in Post, Texas. (Melina Mara/The Washington Post/Getty Images)
At the center of that pricing power sit the “Big Four” — Tyson, JBS, Cargill and National Beef — that underpin America’s pasture-to-plate beef supply chain.
Together, the packing giants process about 85% of the grain-fattened cattle that turn into steaks, roasts and other cuts in supermarkets.
“The U.S. beef market is so concentrated that a small number of dominant packers control processing, distribution and pricing. This allows them to pay ranchers less for cattle while charging fees.” Consumers More in store. “When cheap imported beef comes into the system, it allows packers to increase their profit margins,” Harris told Fox News Digital.
It’s a concern that resonates deep in cattle country.
Texas Rancher Cole Bolton said he sees the same problem in the Lone Star State.
In Texas cattle country, one farmer welcomes Trump’s focus on decades of razor-thin margins
Photo of rancher Cole Bolton and his wife in Texas. (Courtesy of Cole Bolton)
“The real issue is the price differential between the big four packers and what they pay us for the product,” said Bolton, owner of K&C Cattle Company.
Those margins have been squeezed for decades, Bolton said. “Ranchers have been dealing with such razor-thin profit margins for the last 20 years.”
While ranchers like Bolton and Harris say Trump Temporary expansion of US beef imports from Argentina may help cushion prices in the short term, and both warn it is no substitute for rebuilding domestic production.
“Imports should serve as a bridge, not a long-term substitute,” Harris said. “We must rebuild America’s cattle herd, protect American farmers and ensure transparency, so consumers understand where their beef comes from. Long-term affordability depends on a healthy, resilient domestic cattle industry – not a permanent reliance on foreign beef.”
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Rancher Brad Randle rounds up some of his black Angus cattle to be sold at auction on September 12, 2022 in McCook, Nebraska. (Ricky Cariotti/The Washington Post/Getty Images)
Drought years, high fodder Costs An aging livestock population has led to shrinking herd sizes, leaving the U.S. livestock supply at its lowest level in more than 70 years.
“I think it’s going to take some time to solve this crisis that we’re facing with the livestock shortage,” Bolton told Fox News Digital. “My message to consumers is simple: People, be patient. We have to rebuild our herds.”
He noted that the livestock industry has suffered one setback after another, from market turmoil to extreme weather conditions, over the past five years.
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