Latest News From Packer

Momentum continues to build for cattle feeders as closeouts saw average profits increasing during the final week of 2021. Farrow-to-finish hog operations continue with negative profit margins.

The Biden Administration’s Action Plan to invest $1 Billion to expand competition in the U.S. meat packing industry and strengthen enforcement of antitrust regulations drew mixed reactions from cattlemen.

The Biden Administration’s $1 billion Action Plan unveiled Monday to aid farmers, ranchers and consumers would do none of the above, according to the North American Meat Institute.

The Biden Administration unveiled a new, four-pronged action plan to aid independent meat processors, strengthen the Packers & Stockyards Act, and issue new "Product of USA" labeling rules.

Packers needed cattle last week and pushed the cash market higher as the holiday-shortened weeks came to a close.

Cattle feeders anticipated cash cattle prices would be softer since packers were working with holiday-shortened hours last week. Packers will need cattle this week to fill full-week schedules.

Cash bids were scarce last week with packers facing shortened slaughter schedules the next two weeks. Cash prices were $2 lower in all regions.

Economic advisors to the White House suggested Friday that America's large meat packers have used their market power to drive up consumer prices while underpaying farmers resulting in a huge jump in net profits.

Cattle feeders found softer demand from packers last week, resulting in a $2 per cwt. decline in cash prices. Holiday slaughter schedules the next couple of weeks will likely prevent any price gains until the new year.

November employment data was called disappointing despite the unemployment rate dropping slightly. Retaining workers has become difficult even as employers raised pay, which eventually gets passed along to consumers.

Tyson Foods said Monday it will give approximately $50 million in year-end bonuses to its frontline, hourly workers. These one-time bonuses will be based on tenure and range from $300 to $700.

Higher prices for cash fed cattle has helped cattle feeders gain currentness and improve their market leverage over the past four weeks.

While Cargill and the United Food and Commercial Workers Union appear to have avoided a labor strike at the High River, Alberta, beef plant, a shut-down could produce significant disruptions to the U.S. cattle market.

Proposal for a small beef processing plant in north-central Kansas gained approval from county commissioners on Wednesday despite some strong local opposition.

Packers have margin to spread back upstream to the feedlot sector at their discretion, and it appears that their need to fulfill orders for high-quality product for upcoming holidays is likely a motivating factor.

Cattle feeders saw average profit margins exceed $200 per head last week while pork producers found losses of $44 per head, according to the Sterling Profit Trackers.

A tentative agreement between Cargill and its unionized workers at the High River, Alberta, beef processing plant has been reached, avoiding a possible strike on December 6, 2021.

Cargill has served notice of a lockout for employees at its High River, Alberta, beef plant if the company and union employees do not reach an agreement before a December 6, deadline.

The week before a holiday is not usually ideal for pushing the market higher, but last week proved to be just the right combination to support a rally.

Missouri Cattlemen's Association welcomes American Foods Group's plans to build a new, 2,400-head per day beef processing facility in the Show-Me state.

Warren County, Missouri, has been selected by American Foods Group (AFG) as the planned location for a new state-of-the-art beef processing facility, pending final approval.

The cash fed cattle market found its way higher again last week, with four or more packers in the market all fighting for cattle every week for the first time in two years. 

United Food and Commercial Workers union is asking for reasonable wage increases along with assurances for the health and safety of workers.

Last week cattle feeders found themselves in an environment they had not seen since August of 2019.  Four packers were in the market competing for the cattle that were available on the list.

Brazilian meatpacking giant JBS SA says it will use Bovaer, a feed additive to reduce methane emissions in its global supply chains.

In testimony before the House Ag Committee, the Meat Institute said the current labor shortage is a significant factor driving U.S. food prices higher.

Cow and bull slaughter for 2021 continues outpacing last year’s totals, and cow processing plants are operating at higher capacity utilization levels than fed cattle plants.

Cattlemen considering making the leap into ownership of a packing plant should consider how their risk profile dramatically changes with labor, trucking, and the cost of building and retaining markets.

Cash fed cattle prices moved higher last week with all packers participating. This week cattle feeders will look to keep the momentum going.

Cash fed cattle prices finally broke out of a weeks-long rut, trading $2 to $4 higher in all regions. This week saw the highest prices of the year and the highest average since 2019.

Sustainable Beef LLC, the Nebraska firm that announced plans to build a 1,500-head per day beef slaughter facility in North Platte, will seek $21.5 million in tax increment financing (TIF) from the city.

Cases and deaths from COVID-19 among workers at the leading U.S. meatpacking plants were three times as high as previously estimated based on an investigation by the House Select Subcommittee.

Tyson Foods has achieved a 96% vaccination rate for COVID-19 among its 120,000 American workers.

Packers were willing to take a little lower grading animal last week, but cattle feeders may have a limited window to get those undesirable cattle market before larger supplies appear on showlists.

Market-ready cattle numbers decline with little affect on prices, signaling supplies remain ample compared to slaughter capacity. Cattle on feed numbers were lower versus year-ago for the first time in 16 months.

Texas Tech researchers have received a grant to examine if thermography can help minimize the use of antimicrobials in cattle through targeted metaphylaxis.

Greater Omaha Packing announces a partnership with Food Bank for the Heartland to routinely donate high-quality beef, providing nutritious protein for residents in Omaha and Western Iowa communities.

Cash cattle trade looked to be a repeat of the last several weeks with packers grudgingly upping bids. It was not a huge increase, but it is a sign that the number of front-end cattle available is becoming shorter.

Cash cattle prices were steady to slightly higher as supplies of market-ready cattle continue to decline. Analysts believe the fall low is in and stronger prices will prevail the balance of the year.

Beef exports during August were an all-time record for any month. U.S. beef exports continue to be fueled mostly by the strong growth in the China/HK market, up 160.5 percent year over year in August. 

The number of high end market ready cattle should be limited for the next several weeks. If the cattle feeder has any opportunity to take any of the margin from the packer the time may be upon us.

Legislative proposals aimed at the U.S. livestock markets could have a negative impact on farmers and ranchers they are intended to protect, Meat Institute argues ahead of Thursday’s House Ag Committee hearing.

Wholesale beef prices have declined nearly 18% since late August at the same time retail prices have risen. But demand for beef remains high, with forward buying increasing the last few weeks.

For their influence on the beef business, shifting toward quality and value-based marketing, U.S. Premium Beef earned Certified Angus Beef’s (CAB’s) 2021 Progressive Partner Award.

A federal judge in Yakima, Wash., has denied Tyson Fresh Meats’ motion in bankruptcy court to pursue fraudulent transfer claims against Easterday Ranches for the sale of its North Lot prior to filing for bankruptcy.

Holidays are out of our way, but packers have begun their fall cooler cleanings.  This rotation will keep at least one plant running short for several weeks and will continue to keep fed cattle harvest to a minimum.

Does the beef industry have enough packer capacity? With repeated bottlenecks and a worker shortage, a better question might be, "can the industry better use the capacity it has?"

The Grand Island, Neb. Fire Department has concluded its investigation into the cause of the fire last week at the JBS beef processing facility.

Cattle feeders continue to struggle with ample supplies of market-ready cattle and only moderate demand from packers.

A federal judge has denied a motion for dismissal of the lawsuit alleging price fixing and market manipulation by America’s four largest beef packers.