I heard of this on the midday farm report on AM radio on Friday, here’s the scoop from Beef Magazine:
Live cattle futures collapsed in yesterday’s (Thursday) trading as Cargill announced that it would sharply reduce packing capacity in light of limited cattle supplies in the Texas Panhandle.
According to the Cargill press release, their plant in Plainview, TX, will be idled following the results of “an exhaustive analysis of the regional cattle supply and processing capacity situation in North America… The U.S. cattle herd is at its lowest level since 1952. Increased feed costs resulting from the prolonged drought, combined with herd liquidations by cattle ranchers, are severely and adversely contributing to the challenging business conditions we face as an industry.” The closure will affect 2,000 employees at the Plainview facility.
More here: Cargill Plant Closing Drives Collapse In Futures | Cattle Prices content from BEEF Magazine.
And here, including some interesting statistics — the U.S. cattle herd is dropping about 2% a year: UPDATE 2-Cargill to shut Texas beef plant as cattle herd shrinks | Reuters.
louise wagenknecht
Louise Wagenknecht worked for the Forest Service for 31 years and has written two books about her life in the Klamath Mountains of northern California. She writes from the wilds of eastern Idaho.
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Who will this effect the ranchers? Will they rebel somehow,in what direction does this push wildlife ? Or does it have to do with nothing except their pocket books ?
Richie – I doubt it will effect ranchers in my area since many of them have stockpiles of hay due to the past couple of mild winters. They can afford to hang on to cattle they might otherwise have shipped by now.
A great time to start making the switch to a plant-based diet.
http://www.othernationsjustice.org/?page_id=3183
Not going to happen, I am not giving my meat up, of course, I could care less if cattle futures fall as I eat wild meat, but I am not giving it up.
Thanks Heavens the climate hasn’t changed. Otherwise there could be a very bad drought or something.
and thank heavens you guys out west have not had any especially bad fires, and here in the East have not had any devastating hurricanes both in intensity and frequency! Its all cool staying on the same course that is…
Idaho had a slaughter plant close about six months ago that killed mostly cows that effected the local Montana cull cow market. Plant closure or hour reductions happen about as often as plant start-ups and hour increases, it’s supply and demand. As far as futures most the people who trade futures have little to do with agriculture. There’s a old story about grain futures during a drought a guy grabbed his umbrella and had a friend throw some water on him, walked on the trading floor declaring it was raining, futures went up the limit.
Yes Rancher Bob, but look at this, and there is little prospect for change significant change. http://droughtmonitor.unl.edu/
On January 11, a big mid-winter dust storm arose in eastern Colorado, blowing into Western Kansas. http://earthobservatory.nasa.gov/IOTD/view.php?id=80164
Ralph
The continued drought is why that plant closed. When and if it rains, cattle numbers in that area will come back. Grass needs rain and cows need grass slaughter plants need cows. Not the first drought for that part of the world.