As we’ve been saying for the last 18 months (and counting), beef remains stubbornly expensive. Supply is still tight, and production continues to lag. And the past 48 hours haven’t helped.
Here’s what’s gone down:
- The USDA has once again suspended cattle imports from Mexico, after briefly lifting the ban last week. Mexico typically accounts for about 4% of the U.S. fed cattle supply, so this move puts even more pressure on domestic supplies. (Shout out to Lando Norris (car number 4) — saw the new F1 movie, It's a gas!
- Meanwhile, tariffs on Brazilian imports were raised from 10% to 50%. So for those keeping score, and ready yourself because this is a big number, the above quota tariff on beef imports from the country will be 76.4 percent effective August 1. Oh by the way, Brazil has been the largest beef exporter to the U.S. by volume this year, primarily supplying lean beef trim — a.k.a. the stuff that makes our burgers burger.
Feeling the squeeze from high beef and volatile commodities? Datum FS has the data, tools, and partners to help you manage supply and protect pricing — without the guesswork. Learn more at the links at top.