LUBBOCK, Texas (RFD NEWS) — Uncertainty around U.S. beef processing capacity is raising fresh questions about whether large-scale heifer retention is even necessary as the industry looks toward rebuilding the cow herd. Recent plant closures and production cutbacks suggest slaughter capacity may shrink before expansion efforts fully begin.
According to analysis from Don Close of Terrain, Tyson Foods’ decision to close its Lexington, Nebraska, beef plant and reduce production at its Amarillo, Texas, facility has altered the balance between fed cattle supply and slaughter capacity. With fewer cattle needed by packers, feedyards may be able to meet demand using existing inventories, reducing the need to bid aggressively for feeder cattle.
USDA data continue to show that heifer retention has not meaningfully started. Heifers on feed remained flat through the third quarter, confirming that producers have not yet shifted toward herd rebuilding. At the same time, years of cow liquidation across both beef and dairy sectors have left an aging herd with limited replacement depth.
Close warns that further reductions in processing capacity could discourage expansion, locking the industry into tighter supplies and slower recovery.
Farm-Level Takeaway: Shrinking slaughter capacity may delay heifer retention, complicating herd rebuilding plans.
Tony St. James, RFD NEWS Markets Specialist
U.S. trade talks with China resume, but meat industry leaders say dealing with shifting demand and market uncertainty is nothing new in this side of the ag sector.
September 15, 2025 12:57 PM
·
September 15, 2025 12:09 PM
“A lot of natural instincts involved in this format.”
September 12, 2025 10:25 AM
·
The Interior Department is proposing to repeal the Bureau of Land Management’s Public Lands Rule. This move would make huge strides to empower local decision-making and restore balance between conservation and protecting rural livelihoods tied to these public lands.
September 10, 2025 02:45 PM
·
Mother-daughter RanchHER duo, Lyn and Sherrie Ray, joined us on Wednesday’s Market Day Report for a sneak peek at tonight’s brand new episode of FarmHER + RanchHER.
September 10, 2025 01:45 PM
·
The 2022 Census of Agriculture revealed a more than 30% decrease in U.S. dairy farms since 2017. The shrinking industry is now uniting to advocate for itself while also adopting technology to reduce operational strain.
September 10, 2025 12:55 PM
·
The Supplemental Nutrition Assistance Program (SNAP) was once again on the national stage, front and center this week before the House Agriculture Committee.
September 10, 2025 11:10 AM
·
September 10, 2025 10:07 AM
·
Labor is an ongoing crisis in the ag sector. One industry group outlines three vital reforms to the H-2A visa program that farmers need to secure an affordable, stable workforce.
September 09, 2025 12:22 PM
·
