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
Tyson’s closure reflects deep supply shortages in the U.S. cattle industry, tightening packing capacity, weakening competition, and signaling more volatility ahead for cow-calf producers and feedyards.
November 21, 2025 07:02 PM
·
Gary Hall, co-founder of Hollywood Impact Studios Rehabilitation, joined the program to discuss using agriculture to provide opportunities and mentorship for at-risk youth in Southern California.
November 21, 2025 02:25 PM
·
Screwworm.gov has targeted resources for a wide range of stakeholders, including livestock producers, veterinarians, animal health officials, wildlife professionals, healthcare providers, pet owners, researchers, drug manufacturers, and the general public.
November 21, 2025 02:09 PM
·
Mike Steenhoek of the Soy Transportation Coalition discusses industry reactions to the proposed Union Pacific–Norfolk Southern merger, the Surface Transportation Board’s review process, and current conditions on the Mississippi River.
November 21, 2025 01:59 PM
·
Sen. Roger Marshall discusses the Senate’s unanimous passage of the Whole Milk for Healthy Kids Act and what expanded milk options could mean for students and dairy farmers. Industry groups say it is a win for student nutrition and dairy producers.
November 21, 2025 01:19 PM
·
Lower tariff rates and new rail-service proposals may improve corn movement efficiency during early-season marketing.
November 21, 2025 12:01 PM
·
