By Gregg Doud
NMPF is concerned by the Trump Administration’s decision to increase imports of foreign-raised beef, which will have unintended consequences for U.S. cattle and dairy producers alike. Cull cow and calf sales are a key economic driver for U.S. dairy farmers and equates to 20% of annual dairy farm income and greater than 20% of the U.S. beef production is now being supplied by dairy farms. Current beef prices are an important reason why we have the most dairy cows in the United States since 1992; meanwhile, U.S. milk production is up 2.7% versus last year. Both trends help keep beef and dairy products affordable for consumers; dairy is stepping up to solve the consumer challenge of higher beef prices.
Policy-created disruption threatens the billions of dollars invested by U.S. dairy farmers and manufacturers to grow supply of beef and dairy products. For the second time this year, the federal government has significantly intervened into the U.S. beef market, this time to remove duties on imports of 300,000 mt of beef over the next 90 days. This will have a short-term, muted economic impact for consumers: But the effects on both dairy and beef producers could be felt for some time. This decision risks a reduction in the price dairy farmers receive for their cull cows and higher profits for foreign beef exporters, all for a potentially nominal decrease in the retail ground beef price.
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