President Donald Trump made comments in the Oval Office and on Air Force One about lowering the cost of beef by bringing in more imports from Argentina.
These comments quickly spread through the hills.
President Trump either misspoke or he was given bad advice because, as we all should know, beef is driven by supply and demand, like all other commodities.
Then there was an announcement about Mexican Agriculture Minister Julio Berdegué planning a trip to Washington, D.C. to meet with U.S. Secretary of Agriculture Brooke Rollins to see if the U.S. would re-allow live cattle imports.
The border has been closed off and on since May due to the discovery of New World screwworm 70 miles from the Texas state line.
These two issues have rocked the beef industry. Cattle futures fell the limit numerous days in a row, and the calf and yearling markets fell hard. What really hurt was this all happened during the busiest time of the year for ranchers selling their calves, and it killed rising markets.
Cattle producers and consumers alike realize cattle and beef prices are at record-high prices, but tell me what isn’t record high in the grocery store? Many have noticed packages are the same size, but contents are down a third from what they used to be.
The economy, automobiles, machinery, liquor, clothes, rural property and most everything else is at record prices. What a lot of consumers don’t realize is, throughout the years, beef has not risen as much as other products, especially food products.
The cost of beef today almost matches the cost of production.
In 1980, ground beef cost $1.29 a pound. Today it costs $6.32 a pound, an increase of 335 percent. Then, coffee cost 44 cents a pound and now it costs $5.50, an increase of 775 percent. So at the cost today, beef is a good buy, especially with its high protein content.
One has to realize the time it takes a hamburger or steak to get on a plate. From the beginning of gestation to the hamburger or steak we eat, the process takes around 30 months, whereas chicken only takes nine months. However, look at the difference in protein and taste.
For years, some have been saying the U.S. needs Mandatory Country of Origin Labeling to identify beef products born, raised and processed in the U.S.
We need to think about what this means. How do we identify each cow and the cost of how it is processed in the packinghouse? Who pays the added cost? Will Canada and the World Trade Organization stop it again and what will be the role of the government over our cows?
Rollins has come out with a plan to strengthen the U.S. beef industry, prioritizing U.S. ranchers’ important role in the security of the nation, along with a plan for all of agriculture.
Ranchers are not looking for a handout. They want to ranch in a sustainable way for their families and have a decent income with less government regulations on a level playing field with others. They want the opportunity to purchase more land when needed and raise more cows.
They don’t want to be the rancher who has to leave because there are no profits in the business.
Dennis Sun is the publisher of the Wyoming Livestock Roundup a weekly agriculture newspaper available online and in print. To subscribe, visit www.wylr.net or call 800-967-1647.
