LUBBOCK, Texas (RFD NEWS) — Calls to dismantle the largest U.S. beef packers could backfire on cattle producers and consumers by raising costs, increasing volatility, and weakening the industry’s ability to withstand shocks. That warning comes from Hyrum Egbert, a food and protein industry executive, who argues that scale — not consolidation for its own sake — underpins today’s beef system.
Egbert points to decades of USDA Economic Research Service findings showing that large, high-volume packing plants operate at materially lower per-head costs than smaller facilities. Those efficiencies help sustain cattle bids, support food safety investment, and keep beef competitive in export markets that now account for roughly 14 percent of U.S. production.
Forcing plants to split or downsize would raise fixed costs per animal, increase vulnerability during droughts or market downturns, and reduce investment in grading, traceability, and food safety systems. While more packers might briefly boost competition, Egbert notes the long-term result would likely be plant failures, wider basis swings, and higher retail prices.
He also warns that fragmentation could accelerate retailer vertical integration, shifting power away from producers rather than restoring it.
Farm-Level Takeaway: Structural efficiency supports cattle prices and resilience — breaking it risks higher costs and greater volatility.
Tony St. James, RFD NEWS Markets Specialist
USDA will meet part of November SNAP benefits under court direction, citing insufficient funds for full payments.
November 04, 2025 10:20 AM
·
Laramie Sandquist discusses Nationwide Agribusiness’s commitment to grain bin safety initiatives, including providing life-saving equipment and training to fire departments across the country.
November 03, 2025 01:13 PM
·
An import lag for ground beef will likely look different than last year’s egg shortage. The difference comes down to biosecurity and market flexibility.
November 03, 2025 12:07 PM
·
Persistently low Mississippi River levels are turning logistics challenges into pricing risks — tightening margins for grain producers and exporters across the heartland.
November 03, 2025 10:20 AM
·
The WASDE/Crop Production combo will be the first full read on supply, demand, and yield that could move basis and hedging plans since the government shutdown more than a month ago.
November 03, 2025 09:34 AM
·
China’s grain expansion model may be hitting its limit. Lower prices, high rents, and policy fatigue threaten future output — with ripple effects across global feed and oilseed markets.
November 02, 2025 05:06 AM
·
