Argentina beef imports won’t fix corporate concentration, ranchers say

While the administration touts president Donald Trump’s proposal to import more beef from Argentina as a way to lower prices for American consumers, critics say it ignores the real issue driving costs at the grocery store: corporate concentration in the U.S. meatpacking industry.

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

Fox News Digital reached out to the four companies for comment but did not receive a response by press time.

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The frustration extends beyond agricultural countries — Rep. Thomas Massie, R-Ky., says the dominance of multinational meatpackers is hurting producers and consumers alike.

“Four companies control 85% of the meat sold in the United States. One is owned by China and the other is owned by Brazil. American farmers are being squeezed and American consumers are being extorted,” Massey told Fox News Digital.

Massey, who raises cattle on his Kentucky farm, warned that expanding beef imports from Argentina will only exacerbate those structural problems.

“Flooding the market with Argentine beef is not the solution to these problems,” Massey said. “The America First solution to high beef prices is to pass the PRIME Act, which will enable American farmers to sell directly to consumers without interference from global corporate middlemen.”

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

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Agriculture Secretary Brock Rollins recently unveiled a plan aimed at boosting the American livestock industry. (Ty Wright/Bloomberg/Getty Images)

Economists agree that the beef market is largely consolidated, but they say the forces shaping prices go far beyond any single trade deal.

Strong consumer demand continues to push beef prices higher, regardless of supply fluctuations, Glenn Tonsor, professor of agricultural economics at Kansas State University, told Fox News Digital.

“There’s nothing that forces me or you or anyone else when we go to the grocery store to pay more for beef. People make that choice,” he said. “Consumer desire for beef is strong, and regardless of the supply-side situation, that has the effect of pushing up prices.”

He also noted that the large-scale structure of the U.S. meatpacking industry, which is often criticized by ranchers and lawmakers, has economic benefits for consumers.

“I would argue that these economies of scale benefit consumers,” Tonsor said. “Being able to operate at a cheaper cost per capita and, ultimately, per pound of product, gives us the ability to offer beef and all the other items we’re talking about at a cheaper price. Anything we do that loses those economies of scale actually hurts consumers in the form of higher prices.”

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The White House had previously said that importing beef would help address rising food costs in the United States (Jim Watson/AFP/Getty Images)

Even if U.S. imports from Argentina increased, the impact on overall prices would be minimal, said Derrell Bell, a professor of agricultural economics at Oklahoma State University.

“Most of what we import is lean, processed beef used for ground beef,” said Bell, who specializes in livestock marketing. He added: “We are not talking about the type of beef that affects steak prices. Even if we doubled imports, it would be such a small share of the total supply that we would not detect any real impact.”

Bell added that there is no quick way to ease pressure on cattle prices, as it takes approximately two years to bring animals to market and several years to rebuild herds.

“The fact of the matter is there is nothing anyone can do to change this very quickly,” he said. “We are in a supply constraint that has been several years in development, and will take several years to get out of.”

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

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Meanwhile, the White House defended the plan, saying it aims to strike a balance between relief for consumers and long-term support for US livestock producers.

“The president loves our ranchers, and he loves American consumers, and he wants to do what is right for both,” White House press secretary Carolyn Leavitt said Wednesday.

Trump’s immediate goal is to lower beef prices by increasing supply through additional imports, while a separate longer-term plan will focus on boosting the domestic cattle industry, Levitt said.

She pointed to a three-part plan announced by Agriculture Secretary Brock Rollins, which includes expanding grazing, loosening regulations for new ranchers, cutting inspection costs and improving “Product of the USA” labeling to ensure consumers know when they buy American-made beef.