Farm Action, a nonprofit agricultural advocacy organization, has released a report linking rising US beef prices to consolidation in the meatpacking industry and proposing a series of measures to strengthen domestic cattle production and increase competition in beef processing.
The report, prepared by Sarah Carden, argues that concentration in the processing sector has weakened cattle producers' bargaining power and profit margins while increasing the industry's vulnerability to factors such as drought, rising feed and input costs, labor shortages, and supply chain disruptions.
According to the study, these pressures accelerated herd liquidation and further reduced domestic production capacity. It also notes that ground beef prices have risen by 70% over the past six years.
Among its recommendations, Farm Action proposes mandatory country-of-origin labeling, a temporary federal tax credit of US$ 500 for each retained replacement heifer, programs to restore pasture on marginal farmland, and expanded regional and independent processing infrastructure.
The report dismisses the idea that increasing import quotas from Argentina or other countries would solve the structural issues behind current beef price levels.
