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
Expect incremental near-term lift for feed grains, proteins, and ethanol as tariff cuts and smoother approvals translate into real orders.
October 29, 2025 03:04 PM
·
Dr. Ashley Johnson, with the National Pork Producers Council (NPPC), joins us to share the sector’s perspective on new FDA initiatives targeting ultra-processed foods.
October 29, 2025 01:52 PM
·
While there has been an increase in outbreaks of Highly Pathogenic Avian Influenza (HPAI) this migration season, the CDC says the public health risk is low.
October 29, 2025 01:21 PM
·
Cattle markets are collapsing this week, and analysts say that several factors are at play. Consumer beef prices also remain near all-time highs, threatening long-term demand.
October 29, 2025 12:58 PM
·
Trade pacts with Malaysia and Cambodia unlock tariff-free and preferential lanes for key U.S. farm goods, expanding long-term demand in Southeast Asia.
October 28, 2025 02:08 PM
·
Alan Bjerga, Senior Vice President of Communications with the National Milk Producers Federation (NMPF), shares updates and resources available to dairy producers.
October 28, 2025 02:03 PM
·
FarmHER Erin Cumings shares how Nationwide’s “Every STEP Counts” helps farm and agribusiness owners prioritize safety.
October 28, 2025 01:21 PM
·
The idea of buying more beef from Argentina does not sit well with much of farm country, raising some questions from analysts and producers.
October 28, 2025 01:20 PM
·
Input costs are top of mind for farmers, as they contribute to higher prices and smaller profits.
October 28, 2025 12:00 PM
·
