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
RanchHERs Penny Kasun and Dani Jeanne Lawrence of 7-Up Ranch in Prescott, Arizona, joined us Monday on Market Day Report to discuss the next all-new episode of the show.
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Janie camps out on the historic YP Ranch with the operation’s matriarch, RanchHER Renee Jackson, her family, and a talented crew of cowboys as they wrap up part of branding season on their remote and expansive operation located on the state line of Nevada and Idaho.
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November 14, 2024 09:28 AM
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Janie camps out at the remote State Line of Nevada & Idaho with Renee Jackson, wrapping up branding season at the historic YP ranch.
November 13, 2024 11:20 AM
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Janie spends a day in the life with Pilar Martinez,and helps with her variety of chores on the massive Centennial Ranch in Dillon, Montana.
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