Drought is causing high beef price: Senator defends Trump's Argentina plan

Beef Market & Trade - The administration plans to lower consumer beef prices through increased beef imports [1] - The US imports about 12% of its beef, mainly hamburger, and exports 12% of high-value beef products [4][13] - Argentina's beef contribution is minimal, accounting for only one-tenth of 1% of the market [4] - Reduced cattle imports from Mexico (typically 120 万 cattle) due to screw worm and decreased imports from Brazil due to tariffs impact beef supply [5] Factors Affecting Beef Prices - Drought conditions have led to the smallest cattle herd in over 70 years, impacting beef supply [6] - It takes approximately 3 years to rebuild the cattle herd [7] - Packing plants, controlling about 90% of the industry, may be influencing beef prices [8] - Farmers receive $2 per pound for beef, while it sells for $15, indicating a significant margin for intermediaries [9] Geopolitics & Trade - The president considers a potential $20 billion or more bailout of Argentina, viewing it as a strategic move against China's influence in South America [11][12] - Allowing Argentina to sell beef in the US could replace some imports from Brazil and strengthen ties in South America [13] - Securing the border and lowering gas prices are seen as successes of the administration [16]