Cattle Industry Remains Under Pressure As Nation Reopens

GARDEN CITY, KS – As the nation continues to reopen following the COVID-19 led shutdown of the economy, the beef industry continues under pressure. Although some packing plants had to shut down for worker safety, comprehensive plant cleaning, and modifications for social distancing, the three main plants in Southwest Kansas – where 25 percent of the nation’s beef is processed – remained open and operational. According to Rep. Roger Marshall (KS-1), a member of the House Agriculture Committee, the plants today are operating at about 80 percent capacity with very few positive coronavirus tests. The challenge for the industry, however, remains in what he calls “price diversions” where the price at the supermarket moves in one direction while prices paid to producers move in the opposite direction. “My cow-calf guys have just got creamed (due to very low prices) and now my feedlot guys are getting it”, Marshall explained. The two-term Congressman, a licensed physician, also expressed concern for cattle that are unable to move normally through the supply chain from the feedlot to the packer due to the disruption. “I’m afraid (some of these) cattle are going to be too big to go through our packing plants once this is said and done.”
(SOURCE: AllAgNetwork’s Agribusiness Report)