DesignPicsInc / Depositphotos.com
Washington, D.C. — Today, Farm Action released a new rancher-backed policy roadmap to address record-high beef prices by rebuilding domestic cattle production and restoring competition, rather than relying on increased imports.
The roadmap argues that today’s high beef prices are rooted in decades of consolidation in meatpacking and retail. In the 1970s, the top four beef packers controlled about 36% of the market. Today, four companies control roughly 85%, leaving ranchers with fewer buyers, less bargaining power, and a smaller share of the consumer beef dollar. That same market power also makes it less likely that increased imports would translate into lower prices at the grocery store.
Ahead of the Fourth of July holiday, Americans are paying more than ever for beef. A pound of ground beef costs roughly 70% more than it did six years ago, while steak prices have nearly doubled since 2020. At the same time, the spread of New World screwworm has raised new concerns about cattle movement and supply disruptions.
“People are paying more than ever for beef, but relying on increased imports would weaken the ranchers needed to rebuild domestic supply,” said Farm Action Research and Policy Director Sarah Carden. “Our recommendations show there is a better path: rebuild the cattle herd, restore competition, and lower prices by strengthening America’s cattle sector rather than undermining it.”
The roadmap recommends restoring Mandatory Country-of-Origin Labeling (MCOOL) for beef, creating incentives for herd rebuilding, expanding regional processing capacity, strengthening competition enforcement, and using federal procurement programs to support domestic producers.
“As a U.S. rancher, I know we’re not going to rebuild the cattle herd by importing more beef or maintaining a marketplace dominated by a handful of powerful meatpackers. Farm Action’s recommendations would help restore competition, strengthen domestic production, and give ranchers the confidence to invest in growing the next generation of American cattle,” said Colorado rancher Mike Callicrate.
“I’ve seen firsthand how difficult it is for family ranchers such as myself to compete when imported beef is marketed as if it were raised in the United States. If we want to keep family ranches in business and rebuild America’s cattle herd, we need policies that support domestic production and give consumers clear information about where their beef comes from,” said Montana rancher Gilles Stockton.
The report concludes that consumers and ranchers can both benefit from a stronger domestic cattle sector.
Farm Action is a nonpartisan agricultural watchdog organization.
Farm Action news release
Comments