Beef Prices Rising, But Small Ranchers Struggle for Profit
Despite the increasing prices of beef, small ranchers are finding it difficult to see any real profit. So, where is all the money going?
Glenn Beck, a co-founder of Blaze Media, suggests that the answer lies within a few major meat-processing companies dominating the industry. The regulatory environment, as he describes it, is essentially shutting smaller competitors out of the market.
During a recent discussion with President Donald Trump, Glenn shared his perspective. “When it comes to beef, please take a look at the cartel that is the meat-processing cartel,” he urged Trump, explaining, “I run a ranch, so I understand the difficulties firsthand. It’s really the processing plants that are the problem here.”
He went on to highlight that there are only four main processing companies, with a couple not even based in the U.S. “It’s bad. I suspect they might be colluding,” he added.
Trump responded, “I’m surprised by this because it’s been an issue for a long time—well before my administration.”
Glenn emphasized the challenges faced by ranchers due to federal regulations. “It’s pretty tough for us to butcher the animals ourselves given how unreasonable these inspections are.” He urged for a reconsideration: “If we could ease those regulations, we’d see ranchers stepping up to build processing plants all over.”
“So, you think ranchers and farmers would do just fine with less regulation when it comes to processing beef?” Trump probed.
“Absolutely,” Glenn replied confidently.
This sentiment resonates beyond Glenn. A caller from West Virginia called to share his own experiences in the agricultural sector. “My dad was a farm vet for over 50 years,” he recounted. “Throughout my life, I’ve witnessed the total decline of agriculture in our area. From regulations on chemicals to cattle transportation, it’s been drastic.”
The caller mentioned a local law in West Virginia, known as the farm-to-table law, which allows producers to bypass federal USDA standards while adhering to state regulations. “We have a number of farm-to-table stores now that completely avoid the traditional agricultural system,” he said.
Glenn expressed hope that discussions with the president might lead to some positive changes. “Any measures we can take to relieve the burden of regulations for ranchers and farmers is crucial, and that’s something I spoke about with the president today. I’m hopeful he will take action.”
He continued, “People are exhausted with processed foods and don’t even know where it comes from. If I could process my beef locally, adhering to certain standards, we’d save a lot on meat costs.”
“Right now, my cattle are sold, I think, in Denver. Then they get finished with grain somewhere else before being slaughtered. Honestly, I don’t even know where they end up. It’s ridiculous. The big processing plants are the core of the problem,” he concluded.
