U.S. cattle shortage threatens packers

The nation’s shrinking cattle herd is squeezing beef packers and raising concerns that more processing plants could close, threatening jobs in rural communities.

The U.S. cattle herd has fallen to its lowest level in more than 75 years, and some industry experts warn that another major beef packing plant could shut down as a result.

Years of persistent drought have degraded pasture conditions across much of the country, leaving many ranchers with no choice but to sell more of their cattle and reduce their herds. The resulting decline in cattle supplies has squeezed beef packers that rely on high slaughter volumes to remain profitable.

IN JANUARY, Tyson Foods closed its beef packing plant in Lexington, Nebraska, citing challenging market conditions. The closure eliminated more than 3,000 jobs and dealt a significant economic blow to the rural town of about 10,000 people.

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