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
Waymo reports teen riders for bad behavior and delivers them to the police
Robotaxis could be turning into robocops.
A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.
According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.
“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”
Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.
“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “
A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.
Waymo did not immediately respond to a request for comment.
Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.
The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.
The company said it does not use facial recognition or other biometric identification technologies to identify individuals.
“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.
The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”
“At least they got a designated driver?!” one user commented.
Business
Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination
At the Supreme Court, the unfounded fear of boys masquerading as girls in youth sports rolled the clock back on gender equality.
On the surface, the Supreme Court’s June 30 opinion upholding state laws barring transgender girls from women’s and girl’s sports teams looks like a victory for women’s rights.
The 6-3 opinion by Justice Brett M. Kavanaugh certainly presents itself that way. “Females and males have inherent physical differences relevant to athletic performance,” Kavanaugh wrote. “Therefore, in contact sports, forcing female athletes to compete against males can create significant safety risks.” He also asserted that “forcing female athletes to compete against males can undermine competitive fairness.”
The ruling applied to prohibitions enacted in Idaho and West Virginia against “biological” males’ participation on women’s teams in public schools. Federal judges in both states overturned the bans. The Supreme Court majority restored them. The ruling essentially upholds similar bans enacted in 25 other states.
There was no record of any transgender person participating in school sports in the State, let alone any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.
— Justice Sonia Sotomayor, demolishing the Supreme Court’s argument in favor of banning transgender girls from girl’s sports
Kavanaugh, like Donald Trump and others in the anti-transgender camp, maintained that one’s gender is an immutable fact of life, established even before birth.
Anything else, Trump stated in an executive order he issued on inauguration day 2025, could only be the product of “gender ideology extremism.” The U.S., his order stated, recognizes “two sexes, male and female. These sexes are not changeable and are grounded in fundamental and incontrovertible reality.” That’s a “biological truth,” he declared.
In his own version of this overconfident and factually insupportable conclusion, Kavanaugh wrote: “As all agree, females and males have inherent physical differences relevant to athletic performance.”
Science recognizes that some people are “born with sex traits that don’t fit into typical male or female patterns,” to cite a discussion on the Cleveland Clinic web page on the topic “intersex.” The condition “may involve chromosomes, hormones, reproductive organs or genitals.”
From a psychological standpoint, medical science recognizes “gender dysphoria” as a real condition often requiring counseling and medical intervention such as the use of puberty blockers and hormones to stave off the development of secondary sex characteristics until the condition can be resolved.
No one disputes that there are physical differences between the sexes. Few would dispute that on average or even at the median, males may be bigger and more powerful than females, or that in certain contact sports the difference may be telling and on occasion dangerous.
But that’s not the same as asserting that the physical differences between males and females invariably mean that men will invariably prevail over women in all competitions or that their participation will endanger women.
The International Olympic Committee — in a policy statement Kavanaugh cited incompletely — says that in “most running and swimming events,” males have a 10% to 12% advantage over women. That’s a range that would accommodate the full spectrum of outcomes — transgender females win, cisfemales win, they tie. (The “cis” prefix denotes those living consistent with their birth gender.)
West Virginia and Idaho addressed this ambiguity by banning transgender women from all girls’ teams. So under their rules transgender girls can’t play football or soccer with cisgirls. But what’s the argument in favor of banning them from the 100-yard dash, or cross-country track, or diving, or archery?
But something else is going on here. The Supreme Court’s ruling was almost preordained, given the years-long campaign by conservatives to demonize transgender individuals as if they’re members of an alien species.
It will be recalled that during his presidential campaign, Trump spun a despicable fantasy in which children were kidnapped in school and secretly subjected to sex-change operations.
Trump’s executive order wiped out policies aimed at protecting transgender adults from discrimination. He moved to outlaw gender-affirming medical therapies for anyone under 19 by cutting off federal funding for healthcare institutions that provide such care.
He banned transgender individuals from serving in the military and ordered federal prison officials to move transgender inmates into the general populations consistent with their birth genders, which exposes them to physical assault. (Federal Judge Royce Lamberth of Washington, D.C., has blocked the government from transferring three transgender women into the male prison population or terminating their hormone treatments.)
I wrote during Trump’s first term, when his anti-transgender policies were still gestating, that the goal was to show that “one can target any community, as long as it doesn’t have a strong political voice or political power. These are the actions of bullies and cowards, pretending to be strong.”
Last year, the Supreme Court struck its first blow against transgender rights by upholding a Tennessee law banning transgender care, including puberty blockers and hormone therapy, for minors. Similar laws have been enacted in 25 other states. The majority in that ruling by Chief Justice John G. Roberts Jr. was identical to the one in the June 30 ruling — Roberts, Kavanaugh, and Justices Clarence Thomas, Samuel A. Alito Jr., Neil M. Gorsuch and Amy Coney Barrett.
Who are the targets of this ideological campaign? They number only about 1.6 million U.S. adults, or one-half of 1% of the U.S. population. About 300,000 adolescents ages 13 to 17, or 1.4%, identify as transgender, according to a study by UCLA School of Law.
In West Virginia, as Justice Sonia Sotomayor observed in her dissenting opinion, “there was no record of any transgender person participating in school sports in the State, let along any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.”
In endorsing the flat bans directed at transgender women in Idaho and West Virginia, Kavanaugh argued that any attempt to implement case-by-case judgments of students’ requests to join sports teams inconsistent with their biological gender would create “an enormous practical and administrability problem.”
Is that so? That wasn’t the case in Maine, where the annual K-12 population is more than 170,000. There, a committee was charged with determining whether a student’s participation in a sport consistent with their gender identity but inconsistent with their biological sex would “result in an unfair athletic advantage” or present a risk of injury to others. The committee held 56 hearings from 2013 through 2021, or an average of seven per year. During the entire time span, only four involved transgender girls. (The outcome of those hearings couldn’t be learned.)
It was Maine’s policy, one might recall, that provoked a confrontation between Trump and Maine Gov. Janet Mills at the White House last year, when Trump threatened to withhold federal funding from the state unless it barred transgender students from competing on women’s sports teams. “We’ll see you in court,” Mills snapped.
Whether the Idaho and West Virginia laws genuinely protect girls from unfair competition is questionable. (The Idaho law is styled the “Fairness in Women’s Sports Act.”) In practice, the laws may subject women in public schools to “invasive sex verification procedures,” as educational expert George Theoharis of Syracuse University wrote after the court ruling.
They’re also based on a retrograde view of women as fragile creatures needing men’s protection, Theoharis wrote — “the same logic that has historically been used to justify excluding women from making their own healthcare decisions and girls from rigorous math and science; that physically demanding work is simply beyond them.” (There don’t appear to be any state laws barring transgender women from competing in men’s sports.)
Becky Pepper-Jackson, the plaintiff in the West Virginia case, in which she is identified only as B.P.J., is the only transgender girl who sought to join girl’s teams — track and cross-country — in the state. That was in 2021, just after West Virginia passed its law and she was about to enter sixth grade. She didn’t appear to pose any competitive risk to others on the track and cross-country teams she applied to join — her lawyers told the Supreme Court that on those no-cut teams, she “came in near the back.”
Anyway, she had not gone through male puberty, which theoretically might have endowed her with a competitive advantage, because she had been taking puberty blockers and female hormones.
Thanks to the court’s ruling, Sotomayor observed in a dissent joined by Justices Elena Kagan and Ketanji Brown Jackson, West Virginia can deny Becky access to school sports “because it thinks they have an inherent athletic advantage, even if the facts show that they do not.”
B.P.J., Sotomayor wrote, “cannot practice on girls’ teams, even if she would not take anyone’s spot in an eventual competition, even if everyone who tries out for the team makes it, and even if having the chance to participate could aid immensely in treating B. P. J.’s gender dysphoria.”
So whose interest was really protected by the Supreme Court?
Business
Orange County real estate investor pleads not guilty in $100 million bank fraud case
An Orange County real estate investor accused of criminally defrauding an Arizona bank of nearly $100 million pleaded not guilty Monday and remains in custody.
Mahender Makhijani, 44, of Corona del Mar — who also was ordered by an arbitrator to pay $1.34 billion in a separate civil fraud case — was arraigned in Santa Ana federal court on two charges.
He is accused of bank fraud and making a false statement to a bank in a June 8 case involving a $100 million real estate loan made by Phoenix-based Western Alliance Bank. He was taken into custody on June 10.
Makhijani is accused of providing bogus collateral for the October 2024 loan now in default. In a civil lawsuit, Western Alliance said the outstanding balance as nearly $99 million.
Prosecutors say he falsified title insurance policies that showed the bank would have a first lien on the underlying collateral if the loan went bad, when in fact it did not.
A trial was set for August 11 before U.S. District Judge David O. Carter in Santa Ana.
Michael Schachter, his criminal defense attorney, did not respond to messages seeking comment.
In the civil case, an arbitrator in May ordered Makhijani to pay Laguna Beach real estate mogul Mohammad Honarkar $1.34 billion after ruling he had fraudulently induced him into a 2021 joint venture — and then wrested control and lost to creditors more than two dozen properties Honarkar had owned.
Makhijani has not been criminally charged in that case, but prosecutors alleged in an affidavit in support of the bank fraud charges that he used “force and threats” in his dealings with Honarkar and others — including taking over the landmark Hotel Laguna in 2023 that Honarkar was renovating.
Prosecutors sought to hold Makhijani without bail after his arrest.
The affidavit noted he is a legal Indian immigrant with a home and bank accounts in that country, has access to private jets and threatened to “run away” if caught in a difficult situation.
The request was denied and he was granted $500,000 bail.
However, Makhijani remains in custody after a hearing sought by prosecutors last month before Magistrate Judge Autumn Spaeth.
The judge declined to accept a $450,000 cashier’s check submitted by a Makhijani associate for the bail, finding insufficient proof the source of the funds was legitimate, according to court records.
Makhijani is not prominent outside Orange County real estate circles, but he established a thriving distressed-assets business over the last decade that attracted prominent Southern California real estate investors.
Prosecutors said it paid for a lifestyle that included two multimillion-dollar homes in Corona del Mar, a luxury apartment in Newport Beach and various luxury vehicles.
As of last month, prosecutors had not fully traced his assets, which they believe are not held in his name and some of which may be in India.
The businessman employed an array of shell companies and strawmen to sign documents on his behalf, and to stand in for him as operators of his companies, according to the affidavit.
Makhijani told an associate he took extra precautions because wanted to insulate himself from litigation and that “they were sharks in the distressed world who took advantage of people,” the affidavit stated.
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