Arizona ranchers react to 660 million pounds of tariff-free beef imports
PHOENIX - Thousands of tons of ground beef are being imported to America without any tariffs. It is an attempt to lower the price on store shelves, but there are concerns about quality and whether it undercuts local ranchers.
Local perspective:
Nick Addante shares the products they sell at the Arcadia Meat Market.
"Top round, bottom round, high round sits here, and this is the sirloin," said Addante.
The prices they pay are a lot different than they were when they opened less than a decade ago.
"We were paying 86 to 92 cents a pound live weight, and now it's double that. More than double that in some cases," Addante said.
What we know:
That is the reality as the U.S. has its smallest cattle herd in 75 years.
"We're back in the 1950s. It's pretty scary," said Tim Petersen of the Arizona Cattle Grower's Association.
Petersen says there are a lot of reasons for it. He blames the drought partially, but mostly red tape preventing him from growing his herd.
"It all comes down to the rancher paying the price," Petersen said.
By the numbers:
The White House says they have solutions. The president announced 660 million pounds of ground beef will be imported tariff-free over 90 days. Some fear that could undercut ranchers with only a temporary impact on lowering ground beef prices.
"It creates this whipping effect in the pricing," said Shawn Wood of the Arizona Farm Bureau. "So when the prices go down, there's not incentive to keep growing your herd."
Arizona Impact:
Petersen is not concerned because he believes Arizona ranchers will not compete with the same market as the imported ground beef.
"If they were bringing in prime and choice meat, middle meats, we'd probably be a little bit more upset about it," Petersen said. "But we just need the government to stay out of it. But it's politics, it's all politics, and the American consumer wants to feel like they're getting a break, and perhaps they are. But in my opinion, beef prices aren't too high."
What's next:
Any imported beef will still need to go through FDA inspections.
"It's not bad beef," Petersen said. "It's just lean trim that will be used in ground beef. Nobody grows beef and cattle like we do in America."
Dig deeper:
Additionally, the Douglas Port has now reopened to livestock imports from Mexico after a year-long closure for screwworm concerns.
"They've gone through great extent to protect those cattle coming across the border," Petersen said.
The real solution to all of this is still years and years out. That is how long it is going to take to grow the herd.
The Source: Information in this report was gathered from Nick Addante with Arcadia Meat Market, Tim Petersen with the Arizona Cattle Grower's Association, the White House, Shawn Wood with Arizona Farm Bureau, the FDA, and the Douglas Port.