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
Canal consolidation during expansion could support export stability, but producers should watch for scheduling or policy changes.
February 25, 2026 08:00 AM
·
Rail consolidation could affect grain basis, freight rates, and service reliability across major producing regions.
February 25, 2026 06:00 AM
·
For communities that depend on agriculture as their primary economic engine, the recession is not defined by headlines on Wall Street. It is defined by the quiet disappearance of the businesses that once processed, serviced, and supported the crop.
February 25, 2026 05:00 AM
·
Alan Bjerga of the National Milk Producers Federation discusses the Dairy Margin Coverage program, recent improvements, and what producers need to know ahead of this week’s enrollment deadline.
February 24, 2026 03:01 PM
·
Glyphosate and phosphorus are deemed critical to U.S. national defense, ensuring farmers’ access while signaling a shift toward regenerative agriculture. RealAg Radio host Shaun Haney shares insight on the Trump Administration’s move and what it could mean for U.S. farmers moving forward.
February 24, 2026 01:30 PM
·
UNL Extension’s Troy Walz discusses the Nebraska Ranch Practicum, where sessions are held, how producers can get involved, and what ranchers can gain from participating in the program.
February 24, 2026 01:16 PM
·
