US Beef Prices Soar to Record High; Trump: We're Working Magic to Solve the Problem

As US beef prices hit a record high, President Donald Trump stated on Friday Eastern Time that his administration is working to lower domestic beef prices.

"We're working on the beef, and I think we have a deal on beef," Trump told reporters at the White House,

"Beef is the only one that we can say is a little bit higher than we want, or even substantially higher, and it's going to be going down very shortly. We did things. We worked some magic." However, he did not provide further details.

Beef prices have risen to historic highs due to prolonged drought in the western United States, which has reduced pastureland, decreased the area available for grazing, and increased feed costs.

Last week, meat processing giants Tyson Foods Inc. and Cargill Inc. agreed to pay a total of $87.5 million to settle a federal lawsuit brought by consumers, while denying any wrongdoing.

In fact, meat processors like Tyson are themselves suffering from rising meat prices: their beef business has reported losses because tight US cattle supplies are forcing them to pay higher prices for slaughter-ready cattle.

This year, the US beef supply has tightened further after the US Department of Agriculture halted live cattle imports from Mexico to prevent the spread of a harmful pest that is prevalent in Mexico. Previously, Mexican cattle were typically imported into US feedlots for fattening and slaughtered in US processing plants.

Meanwhile, tariffs imposed by Trump on Brazil have also slowed US beef imports from Brazil. Previously, US food companies often blended Brazilian beef with US beef for hamburger meat.

Although stimulated by rising beef prices, some US ranchers have begun taking initial steps to rebuild their herds. However, it takes about two years for cattle to be raised, grown, and slaughtered, meaning that US beef production is unlikely to increase until at least two years later.