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
While treatable with a vaccine, anthrax is a dangerous threat to cattle herd health if not identified and treated immediately.
September 26, 2025 06:10 PM
·
Strong corn exports are anchoring U.S. trade, while soybean sales remain steady, but shipments lag.
September 26, 2025 04:48 PM
·
Smaller slaughter numbers across beef and pork signal tighter supplies into late 2025, while record-low veal production highlights ongoing structural changes in the sector.
September 26, 2025 04:35 PM
·
Beal joined us on Friday’s Market Day Report to discuss her election to NASDA’s presidency, challenges facing American agriculture, and her background as a Mainer and dairy farmer.
September 26, 2025 03:12 PM
·
Chad Rezniek with the Colorado AgrAbility Project joined us as part of National Farm Safety and Health Week to discuss the growing need for behavioral health support in rural communities.
September 26, 2025 02:24 PM
·
Farm CPA Paul Neiffer joined us on Friday’s
Market Day Report to break down what this extension means for affected ranchers.
September 26, 2025 02:03 PM
·
Potash has seen the most significant decline, falling 11 percent over the same five-year period.
September 26, 2025 01:36 PM
·
FarmHER Christina Woerner McInnis is revolutionizing soil health in Alabama with SoilKit, a cutting-edge tool.
September 26, 2025 11:55 AM
·
Secretary Rollins’ plan targets high costs, labor challenges, and export growth, delivering relief at home while building markets abroad.
September 26, 2025 10:18 AM
·
