Overview

Opening new markets and removing restrictive tariffs and other trade barriers is a top priority for America’s cattle producers. Expanding opportunities for exports is an important way for U.S. farmers and ranchers to increase the value of their cattle.

Value of Trade

Today, exports account for over $400 of value per head of cattle. Much of this value comes from the ability to sell cuts of meat that are less popular in the U.S. but fetch a premium in international markets. For example, products like heart, kidney, liver, tongue, and intestines are difficult to sell in the U.S. but foreign consumers purchase those products as a delicacy and at much higher prices.

The U.S. eats the vast majority of the beef we produce. Only about 12.6% of beef consumed by Americans is from a foreign source and the vast majority of that is beef that comes in the form of lean trimmings used to make hamburgers. This allows cattle producers to sell higher-quality, more marbled American beef in forms like steaks and roasts that are more profitable to producers than simply grinding those cuts.

Foreign-born cattle make up just 2% of the U.S. cattle herd and we only import cattle from Canada and Mexico.

Trade Agreements

Trade agreements have been instrumental for removing tariff and non-tariff trade barriers, which has resulted in record-setting export sales for U.S. beef. Non-tariff trade barriers include quotas, local misinformation, and non-scientific standards that are designed to make it more difficult to sell American beef. Removing these barriers should be a top priority for policymakers.

Trade Priorities

Trade Promotion Authority (TPA) allows Congress to set the objectives and priorities for trade agreements. TPA also ensures that Congress and industry stakeholders have the opportunity to weigh in on trade negotiations, which ensures greater transparency, better trade deals, and more American products headed for market overseas.

The United Kingdom (U.K.) is a prime market for U.S. beef. Since Brexit, the U.K. has the freedom to pursue trade agreements with countries like the U.S. Both Britain and America are close allies with similar consumer interest in beef. American beef could fill an important protein gap in the U.K. while also serving as a profitable market for U.S. cattle producers.

Cattle health and food safety should always be top concerns for the federal government. Unfortunately, countries with questionable animal health histories continue to seek access to the U.S. market for their foreign beef. For example, Brazil has a longstanding history of failing to report cases of atypical bovine spongiform encephalopathy (BSE)—a serious cattle disease. Paraguay is another country seeking U.S. market access, but they have a history of foot-and-mouth disease. These countries must be held accountable for their health standards and should be fully vetted before any foreign beef is allowed into the country.

Contact

Kent Bacus
202-347-0228

Kelsea Kemp
202-347-0228