LUBBOCK, Texas (RFD NEWS) — A new model outlining the beef supply chain shows how value shifts from pasture to retail, highlighting how timing, costs, and yields determine who captures margins.
Hyrum Egbert, writing in the Big Bad Beefpacker newsletter, developed a framework that tracks cattle through cow-calf, stocker, feedyard, packer, and retail stages using consistent weights, pricing, and cost structures. The model follows an 18-month lifecycle and aligns each stage with appropriate pricing benchmarks, from live cattle values to boxed beef and retail pricing.
The analysis emphasizes that margins are not fixed within one segment. Instead, profitability varies with market conditions, input costs, and the sector holding risk at any given time. Feed costs, cattle prices, and beef demand all influence how value is distributed across the chain.
Yield and shrink also play a critical role. The model estimates a loss of roughly 11 to 12 percent from carcass to retail cuts and an additional 8 percent at the retail level, underscoring how much product never reaches the consumer.
The framework highlights that changes in any one part of the system — from weights to pricing assumptions — can shift margins across the entire chain.
Farm-Level Takeaway: Margins shift across the chain based on timing.
Tony St. James, RFD NEWS Markets Specialist
As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
November 14, 2025 02:10 PM
·
The Dairy Checkoff’s new approach to consumer marketing helps farmers bridge the gap between physical vs. digital touchpoints and deliver more end sales.
November 14, 2025 01:52 PM
·
USDA released the November WASDE Report on Friday, the first supply-and-demand estimate to drop since September, just before the 43-day government shutdown.
November 14, 2025 12:22 PM
·
Expanded aerial capacity strengthens the U.S.–Mexico buffer against screwworm, providing cattle producers with stronger protection heading into winter and reducing risk to herds along the southern tier.
November 14, 2025 10:34 AM
·
Some sustainability shifts are not particularly challenging and can be implemented with resources already available to farmers and ranchers on their operations.
November 13, 2025 01:00 PM
·
FD-TV’s own Tammi Arender caught up with Gregg Doud, President and CEO of the National Milk Producers Federation.
November 13, 2025 12:05 PM
·
