Tyson Fire and Cattle Markets As Matt Herrington reported on Monday, cattle futures were down the limit after Tyson’s packing plant in Garden City, Kansas suffered a major fire last weekend. It will be closed indefinitely, and following is a closer look at the impact. The plant has a capacity of approximately 6,000 head/day, and daily kills are estimated at 5,700 head. That is about 20 percent of Tyson’s capacity, 5 percent of national slaughter capacity and 23.5 percent of the slaughter capacity in Kansas. Obviously, these are significant numbers, but even more impactful is that the cattle on feed inventory as of 1 July was at a record 11.5 million head. Approximately 21 percent of all feeder cattle are located in Kansas. Pr...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.