By TIM ALEXANDER Illinois Correspondent
BOWLING GREEN, Ky. – Beef industry consultant Nevil Speer, of Bowling Green, evaluated the federal administration’s plan to import 300,000 metric tons of tariff-free foreign beef, labeling the initiative an ineffective “nothingburger” for retail consumers. Initial trade data indicated that only about 30,000 metric tons arrived in September – a third of the expected initial monthly tranche – primarily consisting of lean trimmings for ground beef that did not noticeably reduce grocery store hamburger prices. “So, only a third of the third initial tranche ultimately ended up here,” said Speer, speaking to Radio Oklahoma Network. “I think an interesting question would be, was there some product that would have come to the United States that actually headed the other way?” The administration’s plan to import the foreign beef was intended to flood the market with cheap, tariff duty-free Argentinian beef products that would allegedly sell for 25 percent below market value. “We haven’t flooded the market, which was the concern with beef imports. By the way, those were lean trimmings used to create hamburger, so we have not moved the price of hamburger much either.” As of Oct. 10, just 78,358 metric tons of Argentinian beef had been passed for entry into the U.S. during 2026, according to the USDA’s Agricultural Marketing Service. However, this represents a 163 percent year-to-date increase in U.S. imports compared to 2025, when just 29,741 metric tons had reached the U.S. shores. International news service Reuters confirmed that Argentina’s beef volumes to the U.S. had tripled in the first seven months of this year. “Shipments to the U.S. accounted for nearly 20 percent of all beef exports – underscoring how important the market has become for Argentina, according to an analysis published by the Rosario trade exchange,” according to Reuters reporting. Speer’s comments echoed what Texas-based livestock industry analyst Andrew Coppin told Farm World in March: Trump’s import plan wouldn’t move the needle on consumer beef prices. “Essentially what Trump did was allow an increase in the quota of beef trim; this is not steak, this is not cuts of beef that are going to compete with prime U.S. cuts. It’s going to end up in grinding beef at McDonald’s, Taco Bell or some other institution that is selling tons of ground beef products,” said Coppin, adding that the planned Argentinian beef import volume would represent less than 1 percent of the total U.S. beef supply. The true drivers behind current retail beef prices remain low domestic cattle inventory and increased demand for beef products, according to Coppin. “We’ve got a risk-adjusted product, and all assets value themselves around risk. To grow beef is a high-risk business, and right now risk and demand are both very high,” he said. “I think beef is fairly priced; it’s what the market is prepared to pay. We haven’t seen a decline in beef consumption, in fact we’ve seen U.S. consumption continue to increase versus pork, chicken and other proteins. The market is ripe.” Speer noted that retail supply chains adapt to pricing curves slowly and consumers remain far more concerned with everyday price spikes in diesel and gasoline than the cost of ground beef. “We just know that grocery store prices don’t move that quickly one way or the other, and trying to change the beef supply chain is kind of like trying to turn the Titanic; it just doesn’t happen that way. I don’t think consumers have seen one bit of (price) difference,” said Speer, who holds a doctorate in animal sciences from Colorado State University and a Master in Business Administration from Western Kentucky University. “It really is a nothingburger. I get it; producers get really emotional about it and I agree with them 100 percent. It’s not the imports, it’s the interference. But let’s all take a breath and understand that this is a huge business, and at the end of the day 300,000 metric tons isn’t that much, and it is unlikely that all of it will come (to the states). It was a big talking point for (the administration) to flash around on social media and say ‘look what we’re doing for consumers.’” Responding to a Farm World e-mail, Speer confirmed he is still working to trace foreign beef products entering the country as part of the Trump administration plan. “The imports in September were far less than the 100,000 metric ton allotment,” he said.
|