Cattle Supplies Must Recover Before Packing Capacity Expands

New or reopened packing plants could struggle to operate efficiently until U.S. cattle inventories recover.

Grazing cattle, various breeds

Carrie – stock.adobe.com

LUBBOCK, Texas (RFD News) — Rebuilding U.S. beef processing capacity will depend on rebuilding cattle supplies first, according to Brandon Brownlee, a longtime food industry specialist with Motion Industries who has worked directly with major packing plants.

Brownlee says beef differs from poultry and pork because cattle require far more time to move from birth to slaughter. Drought, expensive hay and transportation costs can therefore slow herd recovery for years.

He argues that stronger cattle numbers are necessary before additional packing capacity can operate efficiently. Without enough animals, new or reopened plants risk running below the volumes needed to support high fixed costs.

Brownlee cites Producer-Owned Beef east of Amarillo as an example. The $620 million to $670 million producer-owned plant is designed to process about 3,000 head daily and employ roughly 1,600 workers, but construction is being paced toward a late-2028 startup and full production in 2029.

Brownlee says that slower timeline may be prudent while cattle supplies remain tight. For producers and rural communities, the broader message is that processing expansion and herd rebuilding must move in tandem if additional beef capacity is to be sustainable.

Farm-Level Takeaway: Additional beef packing capacity will have limited value unless U.S. cattle inventories recover enough to support efficient plant operations.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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