Business
Commentary: Why are beef prices so high? Blame tariffs, drought and a disgusting parasite
It has become routine practice to turn to Trump administration spokespersons to learn how Democrats and illegal immigrants are the source of all our problems. The high price of beef? Check.
Here, for example, is Treasury Secretary Scott Bessent explaining for Fox News on Sunday why beef prices have been soaring:
“This is the perfect storm,” he said, “something we inherited.” (That’s the blaming the Democrats part.)
The beef segment remains our only soft spot.
— Tyson Foods CEO Donnie King
“Also,” he continued, “because of the mass immigration, a disease we’d been rid off in North America made its way up through South America as these migrants, they brought some of their cattle with them. So part of the problem is we’ve had to shut the border to Mexican beef.”
As is sometimes the case with Bessent, there’s a tiny nugget of truth in his words, surrounded by a bodyguard of misrepresentation.
The truth nugget is that the U.S. Department of Agriculture shut the border to Mexican cattle in March, in order to block the spread to the U.S. of the New World screwworm, a gruesome parasite that has been found in Central and South American herds.
But Bessent’s image of immigrants smuggling their infected beeves across the border is transparent fantasy. The USDA’s announcement of the blockade didn’t tie the screwworm peril to immigration, illegal or otherwise, but to commercial imports. The agency also stated that the infestation hadn’t yet penetrated farther north than Oaxaca and Veracruz, 700 miles from the U.S. border.
The Treasury Secretary’s spiel can properly be seen as standard Trumpian deflection.
That’s because at least some of the run-up in beef prices at the supermarket can be blamed on Trump policies, including his tariff on beef imported from Brazil, which has been a major exporter to the U.S. Trump himself implicitly acknowledged this Friday, when he announced that he was scrapping tariffs on beef and other foodstuffs to bring prices down.
Trump’s budget-cutting also has contributed to the crisis. Agriculture Secretary Brooke Rollins in June announced a “five-pronged plan” to combat the parasite south of the border. What she didn’t mention was that in March, the Trump administration cut off funding for anti-screwworm efforts operated by the U.N. Food and Agriculture Organization as part of its decimation of the U.S. Agency for international Development.
That said, much more is driving beef inflation than tariffs and the screwworm. And an examination of all the root causes indicates that things are likely to get worse at the meat counter before they get better. A recovery in beef prices, according to agricultural experts, may take years.
The root of the beef price problem: The size of the U.S. cattle herd peaked in 1975 and is now lower than it has been since 1951.
(USDA)
Before going further, let’s look at the raw numbers. It won’t be news to most shoppers that beef prices have been on a long-term ascent. The average price of uncooked beef steaks reached a record $12.26 per pound in September, up 15.2% from just before Trump took office.
That’s the tail of a long trend, however: The price was $3.64 in January 1998, according to the Bureau of Labor Statistics, meaning that it has more than trebled during a period in which the overall consumer price index merely doubled.
In recent months, major food processing companies have felt more than a slight pinch. Donnie King, chief executive of Tyson Foods, which owns such lunch meat and sausage brands as Hillshire Farms, BallPark, Jimmy Dean and Aidells, told investors at its fourth-quarter earnings roundup Nov. 10 that “the beef segment remains our only soft spot.”
The company reported an adjusted operating loss of $426 million on beef in fiscal 2025 and projected a loss of up to $600 million in the category for the 2025-26 fiscal year, in part because cattle costs had increased by $1.84 billion, a far larger cost increase than it experienced for any other input. It said that its earnings have been protected by gains in chicken, which has attracted shoppers shunning beef. Overall, for the fiscal year that ended Sept. 27, Tyson reported a profit of $507 million on revenue of $54.4 billion.
That brings us to the real factors driving beef prices higher. To a great extent, they’re secular. One is a long-term decline in the size of the U.S. cattle herd, which has fallen to about 87.2 million head of cattle and calves, its lowest level since 1951. Among the factors in that slide was a drought that struck the cattle-raising prairie states starting in 2020 and lasting through 2022. The all-time peak in the U.S. herd came in 1975, when it reached 132 million head.
Hay prices shot up by about 45% in 2022. With feed costs consuming the value of livestock, ranchers sold off their herds or stepped up the slaughter of their cows and heifers — producing a short-term glut of beef at store shelves but mortgaging their future supply.
Raising an animal from calf to marketable beef takes at least three years. Tyson executives told investors that they had seen signs that ranchers were finally rebuilding their herds, but that means a continued shortage of beef in the years just ahead.
Into this uncertain environment, Trump threw another complication: tariffs. These included a 50% levy on imports from Brazil, which Trump imposed in July not as a protectionist step, but because he was discontented with the prosecution of former Brazilian President Jair Bolsonaro for an alleged coup plot. (Bolsonaro was convicted and sentenced in September to more than 27 years in prison.)
That was a problem because, although foreign beef doesn’t account for a large share of overall beef consumption, it’s important for some categories, notably “lean beef trim,” which gets mixed in with fattier U.S. ground beef to yield the hamburger meat favored by American consumers. Brazil’s production of lean trim helped its beef exports reach more than 25% of all U.S. beef imports.
The long-term rise in beef prices has provoked market participants into a spate of finger-pointing, not all of which is groundless. In 2019, consumer advocates accused Tyson, Cargill and other meat-packers in a lawsuit of conspiring to fix beef prices. Tyson and Cargill settled the accusations against them last month without acknowledging guilt, Tyson paying $55 million and Cargill, $33.5 million. Two foreign-owned companies, JBS USA and National Beef Packing, are still in court.
Others have pointed to putative profiteering by cattle ranchers, whose profits per animal have spiraled higher, even as many have pared the size of their herds.
One might also point to American consumers, who haven’t moderated their beef buying enough to subject the commodity to the rigors of supply-and-demand economics.
The administration’s approach to the rise in beef prices has been chaotic and incoherent. Last month, Trump said he would alleviate the price spike by importing more beef from Argentina.
The proposal garnered instantaneous backlash from American cattle producers. They said the plan “only creates chaos at a critical time of the year for American cattle producers, while doing nothing to lower grocery store prices,” in the words of Colin Woodall, CEO of the National Cattlemen’s Beef Assn. The group noted that Argentina accounts for a bare 2% of U.S. beef imports, meaning that even a significant expansion of the trade flow would do little to moderate prices.
In sum, there’s little Trump can do to influence beef prices, except to make the situation worse, as happened because of his tariffs. Now that he has reversed course and lifted his thumb off the Brazil trade, prices might improve, if modestly. But all those other factors such as drought, the long-term decline in domestic herds and disease, will still be with us, for some time.
Business
A new delivery bot is coming to L.A., built stronger to survive in these streets
The rolling robots that deliver groceries and hot meals across Los Angeles are getting an upgrade.
Coco Robotics, a UCLA-born startup that’s deployed more than 1,000 bots across the country, unveiled its next-generation machines on Thursday.
The new robots are bigger, tougher and better equipped for autonomy than their predecessors. The company will use them to expand into new markets and increase its presence in Los Angeles, where it makes deliveries through a partnership with DoorDash.
Dubbed Coco 2, the next-gen bots have upgraded cameras and front-facing lidar, a laser-based sensor used in self-driving cars. They will use hardware built by Nvidia, the Santa Clara-based artificial intelligence chip giant.
Coco co-founder and chief executive Zach Rash said Coco 2 will be able to make deliveries even in conditions unsafe for human drivers. The robot is fully submersible in case of flooding and is compatible with special snow tires.
Zach Rash, co-founder and CEO of Coco, opens the top of the new Coco 2 (Next-Gen) at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
Early this month, a cute Coco was recorded struggling through flooded roads in L.A.
“She’s doing her best!” said the person recording the video. “She is doing her best, you guys.”
Instagram followers cheered the bot on, with one posting, “Go coco, go,” and others calling for someone to help the robot.
“We want it to have a lot more reliability in the most extreme conditions where it’s either unsafe or uncomfortable for human drivers to be on the road,” Rash said. “Those are the exact times where everyone wants to order.”
The company will ramp up mass production of Coco 2 this summer, Rash said, aiming to produce 1,000 bots each month.
The design is sleek and simple, with a pink-and-white ombré paint job, the company’s name printed in lowercase, and a keypad for loading and unloading the cargo area. The robots have four wheels and a bigger internal compartment for carrying food and goods .
Many of the bots will be used for expansion into new markets across Europe and Asia, but they will also hit the streets in Los Angeles and operate alongside the older Coco bots.
Coco has about 300 bots in Los Angeles already, serving customers from Santa Monica and Venice to Westwood, Mid-City, West Hollywood, Hollywood, Echo Park, Silver Lake, downtown, Koreatown and the USC area.
The new Coco 2 (Next-Gen) drives along the sidewalk at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
The company is in discussion with officials in Culver City, Long Beach and Pasadena about bringing autonomous delivery to those communities.
There’s also been demand for the bots in Studio City, Burbank and the San Fernando Valley, according to Rash.
“A lot of the markets that we go into have been telling us they can’t hire enough people to do the deliveries and to continue to grow at the pace that customers want,” Rash said. “There’s quite a lot of area in Los Angeles that we can still cover.”
The bots already operate in Chicago, Miami and Helsinki, Finland. Last month, they arrived in Jersey City, N.J.
Late last year, Coco announced a partnership with DashMart, DoorDash’s delivery-only online store. The partnership allows Coco bots to deliver fresh groceries, electronics and household essentials as well as hot prepared meals.
With the release of Coco 2, the company is eyeing faster deliveries using bike lanes and road shoulders as opposed to just sidewalks, in cities where it’s safe to do so. Coco 2 can adapt more quickly to new environments and physical obstacles, the company said.
Zach Rash, co-founder and CEO of Coco.
(Kayla Bartkowski/Los Angeles Times)
Coco 2 is designed to operate autonomously, but there will still be human oversight in case the robot runs into trouble, Rash said. Damaged sidewalks or unexpected construction can stop a bot in its tracks.
The need for human supervision has created a new field of jobs for Angelenos.
Though there have been reports of pedestrians bullying the robots by knocking them over or blocking their path, Rash said the community response has been overall positive. The bots are meant to inspire affection.
“One of the design principles on the color and the name and a lot of the branding was to feel warm and friendly to people,” Rash said.
Coco plans to add thousands of bots to its fleet this year. The delivery service got its start as a dorm room project in 2020, when Rash was a student at UCLA. He co-founded the company with fellow student Brad Squicciarini.
The Santa Monica-based company has completed more than 500,000 zero-emission deliveries and its bots have collectively traveled around 1 million miles.
Coco chooses neighborhoods to deploy its bots based on density, prioritizing areas with restaurants clustered together and short delivery distances as well as places where parking is difficult.
The robots can relieve congestion by taking cars and motorbikes off the roads. Rash said there is so much demand for delivery services that the company’s bots are not taking jobs from human drivers.
Instead, Coco can fill gaps in the delivery market while saving merchants money and improving the safety of city streets.
“This vehicle is inherently a lot safer for communities than a car,” Rash said. “We believe our vehicles can operate the highest quality of service and we can do it at the lowest price point.”
Business
Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon
President Trump on Friday directed federal agencies to stop using technology from San Francisco artificial intelligence company Anthropic, escalating a high-profile clash between the AI startup and the Pentagon over safety.
In a Friday post on the social media site Truth Social, Trump described the company as “radical left” and “woke.”
“We don’t need it, we don’t want it, and will not do business with them again!” Trump said.
The president’s harsh words mark a major escalation in the ongoing battle between some in the Trump administration and several technology companies over the use of artificial intelligence in defense tech.
Anthropic has been sparring with the Pentagon, which had threatened to end its $200-million contract with the company on Friday if it didn’t loosen restrictions on its AI model so it could be used for more military purposes. Anthropic had been asking for more guarantees that its tech wouldn’t be used for surveillance of Americans or autonomous weapons.
The tussle could hobble Anthropic’s business with the government. The Trump administration said the company was added to a sweeping national security blacklist, ordering federal agencies to immediately discontinue use of its products and barring any government contractors from maintaining ties with it.
Defense Secretary Pete Hegseth, who met with Anthropic’s Chief Executive Dario Amodei this week, criticized the tech company after Trump’s Truth Social post.
“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote Friday on social media site X.
Anthropic didn’t immediately respond to a request for comment.
Anthropic announced a two-year agreement with the Department of Defense in July to “prototype frontier AI capabilities that advance U.S. national security.”
The company has an AI chatbot called Claude, but it also built a custom AI system for U.S. national security customers.
On Thursday, Amodei signaled the company wouldn’t cave to the Department of Defense’s demands to loosen safety restrictions on its AI models.
The government has emphasized in negotiations that it wants to use Anthropic’s technology only for legal purposes, and the safeguards Anthropic wants are already covered by the law.
Still, Amodei was worried about Washington’s commitment.
“We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” he said in a blog post. “However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”
Tech workers have backed Anthropic’s stance.
Unions and worker groups representing 700,000 employees at Amazon, Google and Microsoft said this week in a joint statement that they’re urging their employers to reject these demands as well if they have additional contracts with the Pentagon.
“Our employers are already complicit in providing their technologies to power mass atrocities and war crimes; capitulating to the Pentagon’s intimidation will only further implicate our labor in violence and repression,” the statement said.
Anthropic’s standoff with the U.S. government could benefit its competitors, such as Elon Musk’s xAI or OpenAI.
Sam Altman, chief executive of OpenAI, the company behind ChatGPT and one of Anthropic’s biggest competitors, told CNBC in an interview that he trusts Anthropic.
“I think they really do care about safety, and I’ve been happy that they’ve been supporting our war fighters,” he said. “I’m not sure where this is going to go.”
Anthropic has distinguished itself from its rivals by touting its concern about AI safety.
The company, valued at roughly $380 billion, is legally required to balance making money with advancing the company’s public benefit of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”
Developers, businesses, government agencies and other organizations use Anthropic’s tools. Its chatbot can generate code, write text and perform other tasks. Anthropic also offers an AI assistant for consumers and makes money from paid subscriptions as well as contracts. Unlike OpenAI, which is testing ads in ChatGPT, Anthropic has pledged not to show ads in its chatbot Claude.
The company has roughly 2,000 employees and has revenue equivalent to about $14 billion a year.
Business
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