South Dakota Farm Bureau (SDFB) is highlighting a new American Farm Bureau Federation (AFBF) analysis showing that increased beef imports have not meaningfully lowered grocery prices. The findings are important to South Dakota consumers and the state’s cattle industry as shoppers continue to face high beef prices and producers consider whether to expand their herds.

New analysis from AFBF shows increased imports along with the suspension of the tariff-rate quota for beef trimmings have not met the intended goal of lowering ground beef prices for consumers.  

The AFBF analysis reveals that since the presidential proclamation, prices remained the same as before the tariff-rate quota changed. At 30 of 41 tracked grocery stores across the U.S., ground beef prices are unchanged, and the average price fell just 16 cents – far short of the 25% discount encouraged by the proclamation.

SDFB President Scott VanderWal said, “The market fundamentals that raised consumer beef prices have not gone away. There are many decisions and interactions along the supply chain that continue to result in high prices at the grocery store.”

Meanwhile, cattle prices have weakened, with ranchers experiencing losses up to $300 to $400 per head. According to USDA’s Economic Research Service, U.S. ranchers only receive 3.3 cents per dollar spent on food in the grocery store after accounting for their costs.

“Dropping cattle prices and volatility in the market discourages producers from growing the nation’s cattle herd,” said VanderWal. “Expanding the U.S. cattle herd and growing our domestic beef production is the best way to control prices for consumers long-term.”

Imports may help fill short-term supply gaps, but they do not address the underlying problem of a historically small U.S. cattle herd. Policies like suspending the tariff rate quota incentivize farmers and ranchers to reduce their herd size. So, even though the U.S. is importing more beef than ever, consumer prices remain high. 

The August presidential proclamation allows the quota expansion to be reconsidered if price relief does not materialize. Given the evidence, SDFB joins AFBF in calling on the President to roll back the proclamation. 

“Farmers and ranchers should have the opportunity to respond to free market signals and reduced regulatory burdens to rebuild our nation’s cattle supply,” said VanderWal.

The complete analysis on beef imports and consumer prices can be found here.


Read the Farm Bureau Intel