In an interesting trade situation that is unfolding daily, R-CALF USA and NCBA have taken a similar stance and have called for the suspension of Brazilian beef imports. Our markets are at levels none of us have ever seen, which have been assisted by a closed southern border amid the tightest supply this nation has seen in nearly 75 years. The cattle just aren’t there, which means the product isn’t either. Feeders and packers already know that it’s a game of inventory right now. Carcass weights shot up to offset inventory numbers and look to continue that trend into 2026. Regardless, Brazilian imports have skyrocketed over the last decade, and the two organizations are saying enough is enough.
Packers have been using Brazilian meat to bolster blends, maintain supply and build margins. In 2022, NCBA called for a halt on Brazilian meat imports due to health and sanitation concerns regarding their infrastructure, specifically dealing with BSE. “We are, once again, calling on Secretary Vilsack to suspend fresh beef imports from Brazil, because of that country’s long history of failing to report BSE cases in a timely manner. It’s incredibly disappointing to have our science-based recommendations met with no notable response by the U.S. Department of Agriculture,” said Ethan Lane, NCBA vice president of government affairs. Similar stances have been taken at several times throughout the last 15 years.
At that time, there was a 26.4% tariff safeguard put in place. “While a temporary tariff increase may discourage further imports from Brazil, it does not address the underlying concern over Brazil’s repeated failure to adhere to international animal health and food safety standards,” NCBA said.
In 2021, Brazilian beef imports shot up 131%, and in the first quarter of 2022, the country had shipped over 50,000 metric tons (mt) of fresh beef into the U.S.
Fast forward to today, now both NCBA and R-CALF are calling for the same thing. U.S. Trade Representative Ambassador Jamieson Greer recently launched a Section 301 investigation into Brazil’s practices surrounding beef imports.
R-CALF submitted comments to the investigation. “The flood of Brazilian beef imports into our market displaces American cattle operations, drives families off the land, weakens the domestic beef supply chain and makes our country more dependent on foreign food,” said Bill Bullard, CEO of R-CALF USA. “We must stop allowing Brazil to undercut America’s food supply.”
This year, Brazil took only 17 days to ship 65,000 mt to the U.S., and has shipped over five times their allotted quota to the U.S. In the past four years, our nation has seen an increase of about 10% of beef consumed coming from other countries, with almost 22% imported, according to R-CALF. Brazil sent 197 million pounds of beef to the U.S. in January alone.
In a similar stance, NCBA also testified in a House hearing for the Section 301 investigation. “We are concerned that the lack of accountability in food safety and animal health in Brazil’s cattle and beef production may undermine consumer confidence in beef consumed in the United States,” said Kent Bacus, NCBA executive director of government affairs.
In August, President Donald Trump added a 50% tariff surcharge to Brazilian imports, which is now set at 76.4%. However, NCBA says this isn’t enough. “Brazil’s weaker currency and lower cost of production will allow Brazil to absorb the tariff and continue to export beef to the U.S. market relatively undeterred,” Bacus said. The statement went on to say, “Tariffs alone may not be enough to hold Brazil accountable. We believe full suspension is necessary, and further restrictions must be applied until Brazil’s claims of equivalency for food safety and animal health are confirmed.”
In an Exame (Brazilian publication) interview, Brazilian Association of Meat Exporting Industries said the tariffs makes exports unfeasible and the country is looking at losing $1 billion in sales. The Meat Import Council of America defended Brazil, claiming the U.S. relies on Brazilian beef imports for ground beef and hamburgers. In a statement, they said, “Despite being one of the largest producers and exporters of beef in the world, the U.S. faces a structural deficiency in an essential product: lean beef trim, a key ingredient in the production of ground beef.”
Looking at this market, feeders and packers are able to reach into these new highs daily because beef demand has also stayed regardless of recent inflation and rising costs. Lifestyle and dietary acceptance at the counter have kept packers afloat, albeit operating in the red. At these levels, there is undoubtedly a concern when this market faulters, but for now, it isn’t due to consumer demand.
What if that were to change due to health and safety concerns? Clearly, there is enough of an economic incentive for Brazil to send as much beef to the U.S. as possible, thanks in part to JBS’ worldwide interests.
It’s quite simple: if some of the product in the blend is held to one standard, all of it should be. If 1% of the product isn’t safe, all of it isn’t. We owe it to ourselves and to the consumer, who is paying more for meat than they ever have, to continue to provide the safest product available. It’s not very often that R-CALF and NCBA agree, but this is something we can all agree on. — LOGAN IPSEN
