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
RanchHER Host Janie Johnson goes behind the scenes with NRCHA Champion and Idaho Rancher Carmen Buckingham as she trains and raises cattle at her idyllic ranch.
November 05, 2024 01:01 PM
·
RanchHER Season 2, Episode 9
Premieres Tue, 11/5/24 – 9 PM ET | 8 PM CT | 7 PM MT | 6 PM PT
October 30, 2024 10:00 AM
·
RanchHER Sarah Kieckhefer joined the Market Day Report on Tuesday morning to discuss the new episode of the show featuring her, which premieres tonight only on RFD-TV.
October 29, 2024 11:06 AM
·
October 24, 2024 03:27 PM
·
Premieres Tue, 10/29/24 – 9 PM ET | 8 PM CT | 7 PM MT | 6 PM PT
October 23, 2024 03:07 PM
·
Proud Cajun RanchHER Julie Trahan runs West Hackberry Cattle Company with her husband, Mark, deep in Louisiana’s coastal marshes.
October 21, 2024 04:23 PM
·
The German company Constellr is part of the John Deere Start-Up Collaborator Program in 2024. It plans to launch a geothermal satellite next year that will give farmers and ranchers better tools to monitor surface temperature from space.
October 21, 2024 11:51 AM
·
In an interview with RFD-TV’s own Suzanne Alexander, RanchHER Pilar Martinez talked about the upcoming RanchHER episodes on the way, including one that features her operation, Centennial Ranch in Dillion, Montana.
October 18, 2024 07:20 PM
·
October 18, 2024 12:07 PM
