Some critics argue the real problem isn’t about supply, it’s the corporate giants controlling America’s meat industry. (Melina Mara/The Washington Post/Getty Images)
The frustration extends beyond farm country – Rep. Thomas Massie, 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 gouged," Massie told Fox News Digital.
Massie, who raises cattle on his Kentucky ranch, warned that expanding beef imports from Argentina would only worsen those structural problems.
"Flooding the market with Argentinian beef is not the answer to these problems. An America First solution to rising beef prices is to pass my PRIME Act, which would empower American farmers to sell directly to consumers without interference from global corporate middlemen," Massie said.
Under current federal law, beef processed at small, state-inspected facilities can’t be sold across state lines, even if it meets the same health standards as federally inspected meat. Massie’s PRIME Act would remove that barrier, a change supporters say would let local ranchers reach more consumers and compete with the big packers.
GOP LAWMAKERS WARN TRUMP'S ARGENTINA BEEF PROPOSAL COULD RATTLE US RANCHERS
The White House has previously said that importing beef will help address the rising food costs in the U.S. (Jim Watson/AFP/Getty Images)
Derrell Peel, a professor of agricultural economics at Oklahoma State University, said that even if U.S. imports from Argentina increase, the impact on overall prices would be negligible.
"Most of what we import is lean, processed beef trimmings used for ground beef," said Peel, who specializes in livestock marketing. "We’re not talking about the kind of beef that affects steak prices. Even if we doubled imports, it would be such a small share of the total supply that we wouldn’t detect any real impact."
Peel added that there’s no quick way to ease pressure on cattle prices, since it takes roughly two years to bring animals to market and several years to rebuild herds.
"The fact of the matter is there’s really nothing anybody can do to change this very quickly," he said. "We’re in a tight supply situation that took several years to develop, and it’ll take several years to get out of it."
BEEF PRICES HIT RECORD HIGHS AS NATIONWIDE CATTLE INVENTORY DROPS TO LOWEST LEVEL IN 70 YEARS
Economists say there’s no quick way to ease pressure on cattle prices or beef. (Ricky Carioti/The Washington Post/Getty Images)
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Meanwhile, the White House defended the plan, saying it’s aimed at balancing relief for consumers with long-term support for U.S. cattle producers.
"The president loves our ranchers, and he also loves American consumers, and he wants to do right by both," White House press secretary Karoline Leavitt said on Wednesday.
Leavitt said Trump’s immediate goal is to lower beef prices by increasing supply through additional imports, while a separate, long-term plan will focus on strengthening the domestic cattle industry.
She pointed to a three-part plan announced by Agriculture Secretary Brooke Rollins, which includes expanding grazing access, easing regulations for new ranchers, cutting inspection costs and improving "Product of USA" labeling to ensure consumers know when they’re buying American-made beef.
Amanda covers the intersection of business and geopolitics for Fox News Digital.
https://www.foxnews.com/politics/trumps-beef-import-plan-ignores-key-issue-squeezing-american-cattle-ranchers