More U.S. Beef Plants to Close as Cattle Herds Keep Shrinking

American beef plants are increasingly under threat as the number of cattle destined for their facilities remains far below historical levels, reflecting the smallest U.S. herd in more than half a century, Ilena Peng reported for Bloomberg News.

Tyson Foods Inc., the nation’s largest meatpacker, underscored the industry’s challenges last month when it announced plans to close a Nebraska beef plant and cut operations to one shift at a Texas facility. (Photo: Tyson Foods X) 

Cattle placements in U.S. feedlots — where animals are fed until they are ready for slaughter — fell 11% from a year earlier to a record low for November, according to a U.S. Department of Agriculture report released recently.

That followed similarly weak figures for October — typically the strongest month — which were also the lowest on record for the period.

Cattle placements in U.S. feedlots — where animals are fed until they are ready for slaughter — fell 11% from a year earlier to a record low for November, according to a U.S. Department of Agriculture report released recently.

That followed similarly weak figures for October — typically the strongest month — which were also the lowest on record for the period.

The situation, exacerbated by an ongoing halt to Mexican cattle shipments aimed at preventing the spread of the deadly screwworm pest, is placing severe strain on beef processors, many of which are already operating at a loss.

The supply crunch is also setting the stage for more expensive American steaks for longer, complicating President Donald Trump’s efforts to bring down record-high beef prices.

Tyson Foods Inc., the nation’s largest meatpacker, underscored the industry’s challenges last month when it announced plans to close a Nebraska beef plant and cut operations to one shift at a Texas facility.

At least one other major plant and several regional facilities could shut down over the next 18 months due to persistent supply pressures, said Hyrum Egbert, an industry expert with nearly two decades of experience in the beef sector.